Habo is located at the southeast part of the productive Tethyan magmatic belt that contains some of the world’s largest porphyry systems such as Sar Cheshmeh in Iran, and Reko Diq in Pakistan. Results to date indicate strong geological similarities of the Habo porphyries with the big systems in Iran and Pakistan, and we are testing and defining the resource of the high-grade zones at Habo.
Habo is a 162-square-kilometre property in southwest China, about 350 km south of Kunming, the capital of Yunnan Province. Access from Kunming is by paved road. Kunming itself, a city of about four million, is served by an international airport with daily flights to Hong Kong, Singapore, Bangkok, Shanghai and Beijing.
Exploration is focused on a large copper-gold-molybdenum porphyry system on prominent hills in the Habo South tenement, one of three concessions that make up the project, where a soil geochemical anomaly measuring 3.5 km by 2.1 km has been outlined. Another three major copper-gold-molybdenum anomalies have been detected through soil sampling and three copper-gold anomalies have been indicated by stream sediment sampling.
On the south portion of the Habo South block we have outlined a porphyry system measuring 2,300 metres by 1,600 metres, but open laterally in all directions. Here, mineralization is typified by extensive potassic alteration with quartz-magnetite/sulphide stockwork and disseminated pyrite, chalcopyrite and molybdenite in the Tertiary porphyries. The mineralized zone has partially oxidized into copper and iron oxides, such as malachite and limonite, due to high degrees of secondary leaching to a depth of more than 80 metres. Samples from old tunnels returned up to 2.96 g/t gold, 242 g/t silver, 0.94% molybdenum and 9.96% copper. Widely spaced (160 to 320 meters) tunnels and drillholes confirmed extensive mineralization, with some results highlighted as follows:
› Tunnel PD11 intersected 52.5 meters grading 0.25% copper and 0.08% molybdenum including 4.5 meters at 0.48% copper, 0.32% molybdenum and 13 grams per tonne (g/t) silver; 1.5 meters at 1.33% copper and 111 g/t silver.
› Tunnel LD1 intersected 247.5 meters mineralization grading 0.1-1.1g/t gold, 0.1-0.9% copper and up to 0.07%molybdenum
› Tunnel PD1 intersected 90.2 meters mineralization grading 0.1-1.8% copper and up to 0.05% molybdenum
› Tunnel PD3 intersected 57.7 meters mineralization grading 0.1-1.0 g/t gold, 0.1-0.31% copper and up to 0.04%molybdenum
› Tunnel PD7 intersected 133 meters mineralization grading 0.13% copper and 0.013% molybdenum
› Samples from old tunnels returned up to 2.96 g/t gold, 242 g/t silver, 0.94% molybdenum and 9.96% copper
› Hole ZK4 intersected 268 meters mineralization including near surface 17 meters grading 1.0% copper
› Hole ZK2 intersected 326.1 meters mineralization including 143.2 meters grading 0.14% copper and 0.01% molybdenum
› Hole ZK5 intersected 231.5 meters mineralization including 17.6 meters grading 0.39% copper
› Hole ZK7 intersected 367.4 meters mineralization including 17.2 meters grading 0.20% copper, 0.03% molybdenum
› Hole ZK8 intersected 401.5 meters mineralization including 58.6 meters grading 0.12% copper and 0.02% molybdenum; 10.5 meters grading 0.05% molybdenum
› Hole ZK9 intersected 334.5 meters mineralization including 134.4 meters grading 0.26% copper and 0.01% molybdenum
› Hole ZK10 intersected 258.6 meters mineralization including 51.6 meters grading 0.37 g/t gold, 6 meters grading 0.81% copper and 14.7 g/t silver.
A 3,000m tunneling program has been planned to further test the high-grade copper and molybdenum zones at Habo South. Surface mapping and sampling programs will be carried out for Habo North and Habo West to test the gold/copper mineralization in the geochemical anomalies.