Bongara Zinc Project

LeadFX acquired the Bongara Zinc Project in October 2020. It has existing mineral resources (from surface) of 441,000 tonnes of contained zinc at 15% Zn with significant exploration potential.

It is located in the Yambrasbamba district of Bongara Province within the Amazonas Department in north-central Peru approximately 650km north-northwest of Lima.

Map of the Bongara Zinc Project

The Bongara Zinc Project includes eight mineral concessions for 8,009.5 hectares (“ha”) that comprise the Bongará Zinc Project and five mineral concessions for 3,115.4 ha that comprise the Charlotte-Bongará Zone Project (together Bongara Zinc Project) (Bongara Concessions).

Map of the Bongara Zinc Project

The Bongara Concessions are hosted within the Pucará Basin which developed over a period of approximately 30-35 Ma during the late Triassic to medial Jurassic Periods in the zone between the Pacific oceanic plate to the west and the Brazilian Shield to the east. With incipient collision between the two land masses, the basin was a collecting area initially for red-bed continental sands (sandstones) and then with continuing subsidence, for deeper water sediments in the form of muds, silts and carbonates (limestones).

Five deposits have been defined in the concessions – Mina Grande Sur, Mina Grande Centro, Mina Grande Norte, Mina Chica and Bongarita.

Bongara Mineral Resource Estimate (JORC 2012)

Categories Tonnes Zn (%) Contained Zn (Ts)
Indicated 1,072,000 16.0% 172,000
Inferred 1,728,000 14.4% 249,000
Total 2,800,000 15.0% 421,000

Approximately 150,000 tonnes of zinc ore was mined from Mina Grandé Centro and Mina Grandé Norte from March 2007 until August 2008 at rate of 358t/day before circumstances relating to the international financial crisis caused the operation to cease in 2008. During this period, high-grade ore was shipped to the coast where it was treated using a Waelz kiln to produce zinc calcine that was sold to major refineries. Approximately 25,000 tonnes of zinc metal were produced.

The Bongara Concessions are located within a substantial zinc belt that extends the entire length of Peru and hosts a great many carbonate replacement deposits including, nearby, Solitario Exploration’s Florida Canyon deposit with 12.9 Mt @ 13% Zn-equivalent in all resource classes (currently being explored by Votorantim Metais).

An agreement with the Yambrasbamba community for the use of land upon which the Bongara Concessions are held was made in March 2018 which was valid for five years ending 5 July 2022. It provides access to the Bongara Concessions during the exploration stage and includes financial support and community programs. An annual social responsibility payment of US$25,000, an annual access and land usage payment of US$27,800 and a quarterly community fee of SOL 7,500 are due under the agreement until June 2022.