Acquisition Of Three Copper Assets Located In Idaho And Arizona

Acquisition Of Three Copper Assets Located In Idaho And Arizona

WALLACE, ID – Magellan Gold Corporation has entered into an agreement with Gold Express Mines, Inc. for the purchase of three copper-focused properties, two of which are in Idaho, and one in Arizona. The Copper Cliff Property, in Adams County, Idaho, is located about nine miles north of the town of Cuprum, Idaho. The project encompasses 71 unpatented mining claims, and an associated lease on patented mining claims comprising the historic Copper Cliff Mine. This open pit mine produced significant tonnages in the 1970’s and 1980’s, totaling 876,929 tons of ore, yielding 11 ounces of gold, 349,073 ounces of silver, and 12,547,883 pounds of copper. The property was mined by open pit and underground methods.

The deposit consists of stratiform and stratabound disseminated copper minerals in iron-rich metamorphosed volcanic rocks of the Seven Devils Group. Ore minerals include bornite, chalcopyrite, chalcocite, malachite, chrysocolla, and azurite. The deposits appear to be volcanogenic, with some remobilization of the sulfides during regional metamorphism and shearing of the host rocks. The Company believes extensions of this historically mined resource may exist at depth and along strike. The company work plans for the 2024 field season will likely include IP geophysics, soil sampling, and possibly drilling.

The Blue Jacket Property in Idaho County, Idaho is located near Lucille, Idaho in the Crooks Corral Mining District, and part of the Nez Perce Forest. The project consists of 79 unpatented claims which are staked adjacent to and around a group of patented claims comprising the historic Blue Jacket Mine. This historic mine is held privately and is not part of the Company land package. The Blue Jacket Mine produced intermittently in the late 1800’s to early 1900’s with the last records of substantial work date from 1918. The crosscut and drift workings described in historic reports total about 2000 to 2500 feet. Reports indicate that around 1917-18 an 865-foot tunnel was driven at the canyon level of Kirkwood Creek to intersect mineralization at a lower elevation. Importantly, sampling from the tunnel walls intersected altered quartz porphyry which was copper mineralized.

Recent sampling on the unpatented claims of the Company taken in the fall of 2022 has revealed several highly anomalous copper results along with other elements. Two oxidized copper mineralized showings which were found during claim staking were examined and sampled. Both are located on the steep, south-facing slope of a ridge south of Kirkwood Creek drainage, and approximately an airline kilometer southeast of the historic Blue Jacket Mine.

One of the samples was taken from a four-meter length prospector pit which exposed quartz veining hosted by andesitic, clayey, siltstone with a strong chloritic, foliation fabric. The quartz vein and sericitic alteration envelope strike N60W and dips 65° northeast, cutting across the metamorphic foliation which strikes N60°E and dips 70° to the southeast. At the northwest end of the pit, the width of the mineralized zone is two meters and gradually pinches out in a southeast direction. The single sample of vein and wall rock collected was comprised of oxide-copper (malachite) which assayed 5.04% copper, 171 ppm silver with anomalous gold, lead and zinc. Of note, the sample also ran anomalous molybdenum (321 ppm) suggesting the vein is porphyry copper related.

The second prospect sampled is a shallow excavation along a north-northeast trending, steeply dipping quartz vein with colorful oxide-copper (malachite, tenorite). The vein is approximately five centimeters in width. Relict chalcopyrite was also noted. Assay results on the one grab sample ran 6.80% copper with 17 gm/ton silver and anomalous gold and zinc. The analysis by the Company and consultants who have examined the claims, and in consideration of historic data, is that the property has potential to be a substantial copper deposit which could carry strong credits of silver, gold and related base metals.

The Copper Butte Project is located in Pinal County, Arizona near the town of Kearny and nearby the Ray Mine currently operated by Grupo Mexico. The project consists of 57 unpatented claims of the Company located adjacent and easterly to 8 patented claims owned by Grupo Mexico. These patented claims constitute the historic Copper Butte Mine, available records indicate that the mine had a historic production of 100,000 tons at a grade of approximately 3% Cu. The copper mineralization is described to be an exotic copper oxide in conglomerate.

The Company believes it is possible that some of this historic resource may extend onto the unpatented claims of the Company. It is also possible that the copper mineralization contained in the conglomerate rock package could continue onto the unpatented claims of the Company. The Company plans a future work program consisting of soil sampling and short-hole drilling to test these ideas.