Critical Tannahill Claims Development Report
The Tannahill Gold Property, a cornerstone of Atacama Resources International's mining portfolio, is poised to redefine its potential through a methodical approach to exploration and resource planning. Atacama is looking to capitalize on the price of gold being near its all-time high of roughly USD 2,788.00 by working the property. Nestled within Ontario’s prolific Larder Lake mining district, the property boasts a storied history of mineral discoveries dating back to 1931, with assays revealing gold concentrations of up to 66.86 grams per ton. Situated on the dynamic geological canvas of the Abitibi Greenstone Belt, this 29-claim site is rich in altered volcanic formations, syenitic intrusions, and mineralized zones. Notably, it sits in the heart of Canada’s renowned “Golden Mile,” the historical hotspot of gold mining in the country. Numerous well-established mining companies neighbor the property, enabling the opportunity for partnerships. These features have inspired Atacama’s strategy to utilize state-of-the-art geophysical and drilling techniques to unlock the property’s deeper and more extensive mineral wealth.
In this inaugural installment of Atacama’s Critical Claims Development Report Series, the focus is on the meticulous groundwork underpinning the Tannahill project. From early geophysical surveys and induced polarization (IP) studies to the strategic 17-hole drilling program, Atacama has invested heavily in refining its exploration framework. With $437,477.12 USD allocated to cutting-edge fieldwork in 2023, the team has systematically delineated prime drill sites and verified historical data to establish a robust foundation for future development. Guided by rigorous geology evaluations and compliant reporting under NI 43-101 standards, Atacama aims to chart a path toward sustainable, cost-effective resource extraction. The potential for further discoveries, amplified by the property’s geological richness and historical indicators, signals an exciting chapter for Atacama and its stakeholders.
Synopsis
The second quarter of 2021 saw the Company exercise its first option on the Tannahill Gold Property.
Atacama Resources holds an option to acquire a 100 percent interest in the Tannahill Gold Property which is located 35 kilometers northeast of the prolific Kirkland Lake Gold Camp in northeastern Ontario.
Past work on the Tannahill Gold Property (1998) has identified two parallel, gold-bearing structures. The gold-bearing structures (Lower Zone and Upper Zone), consist of pervasive quartz-carbonate-albite alteration with disseminated pyrite and variable quartz veining.
Of the 28 diamond drill holes drilled into the gold-bearing zones, 27 intersected significant gold values. The Lower Zone has returned the higher gold grades to date, including visible gold in four holes, and seems to hold the greatest exploration potential.
Tannahill Gold has a 43-101 report certifying visible gold. The company has twenty-nine claims covering 640 acres. The company has immediate plans to start diamond drilling to establish the reserve.
This property was previously open pit mined and with the increase in pricing, it is now even more viable. The drilling will also establish deep gold veins as well giving even more value to the claim.
Of the 45 drill holes to date on the Tannahill Gold Zone has identified two parallel highly prospective north dipping gold bearing. The gold-bearing structures (Lower Zone and Upper Zone), consist of pervasive quartz-carbonate-albite alteration with 5-10% disseminated pyrite with variable quartz veining. Gold is hosted in sections of the pervasive alteration which contain greater than 5% quartz veins. The zones strike in a northeast-southwest direction and dip to the north at 60 degrees.
The Lower Zone has returned the higher gold grades to date, including visible gold in four holes, and holds the greatest exploration potential. The Lower Zone shows continuity along strike and consistency in grade. It has been successfully intersected along 300 meters of strike length at the 25 and 50 meter levels and remains open in both directions along strike and to depth. Grades and widths above the 50-meter level are generally 0.35 - 3.25 gm/t over widths ranging between 0.60 -3.0 meters. At depth, the zone widens significantly, and the grades increase dramatically. Three holes below the 75 meter level along 100 meters
Full Critical Tannahill Development Report - January 10, 2025
Claims Development Chronology for Atacama’s Tannahill Gold Property
The management team at Atacama Resources International (ACRL) understands that small-cap exploration companies like ACRL must locate, acquire, and initiate geophysical activities on the properties, and start ground operations when viable concentrations of targeted minerals are anticipated. Atacama will publish, on a regular basis, the claims development activities of all mining assets that have a history of ground operations, recent ground activities prior to Atacama involvement, and current ground activities being managed by Atacama Resources.
This presentation is the first installment of the Claims Development Report Series, and will cover extensively the history of, and the current activities on the company’s Tannahill Gold Property
Atacama follows a standard claims development protocol and will be used as the guideline for the report for Tannahill Gold and subsequent reports for additional Atacama claims development.
This issue starts with an executive summary of the history of Tannahill and Atacama’s recent involvement.
Executive Summary
Atacama Resources International, Inc. (Atacama, or the company) is a publicly traded OTC Pink Current company registered in the United States that owns or controls a claim group in the Larder Lake mining District. Northeast Ontario, which it refers to as the Tannahill Gold Property. The company is planning early-stage exploration on the property which it acquired via an option agreement dated January 27, 2023. The company engaged Frank R. Ploeger, BSc. P. Geo. to compile and document the historical work performed on the Tannahill Gold property and to verify the historical drill results by locating the drill hole collars and re-sampling the significant intersections in a technical report compliant with the requirements of NI 43-101. The Tannahill Gold property comprises 29 single-cell claims that are in good standing with the Ministry of Mines as of the effective date of this report.
The property is situated on the north flank of a large east-trending synclinorium within a sequence of interlayered tholeiitic and calc-alkaline mafic volcanic rocks of the Abitibi Greenstone Belt. The intrusive rocks in the area range from alkaline to sub-alkaline in composition. The sub-alkaline rocks, which range from mafic to granitic, exhibit chemical trends similar to the calc-alkaline volcanic rocks and are restricted to the calc-alkaline volcanic sequence, comprising a single extrusive/ intrusive magmatic sequence. The alkaline intrusive rocks are syenitic in composition and appear to postdate the main volcanism in the map area.
Mineralization in the map area occurs in areas of strongly altered volcanic rock cut by shear zones or fractures filled with quartz, epidote, and calcite which may be mineralized with chalcopyrite, pyrite, specular hematite, and rarely, visible gold.
Most of the more intense local alteration occurs in or near felsic or syenitic intrusive rocks and adjacent structures.
Gold was first discovered on the site of the current property in 1931 within a shear zone with quartz stringers bearing "free" (visible) gold in an altered volcanic host and in a mineralized vertical porphyry with assays returning up to 66.86 grams of gold per ton. Descriptions from the historical trenching/ stripping suggest a general trend of the mineralized zones and associated structures at approximately 070 degrees, which regionally, is a significant trend for several of the historical gold producers in the major gold camps in the region. The "pervasive quartz-carbonate- albite alteration with 5-10% disseminated pyrite with variable quartz veining" described by Keast for the Lower and Upper mineralized zones and the presence of syenitic intrusives is also similar to that of many of the local past and present producers.
Following the initial discovery, little exploration work was conducted in the area of the claims until 1981, at which time, the historic trenches were re-examined. In the following years, prospecting and trenching programs were conducted on various sections of the property supplemented by a number of geophysical, geological, and soil sampling surveys. A few scattered isolated diamond drill holes were collared in different areas of the property until the winter of 1996 -97 during which time 40 holes tested the extent of the main showing as well as IP anomalies. Geophysical surveys and prospecting continued through to 2022 including core from a 2011 five-hole drill program which was relogged and sampled in 2017.
In 1996-97, a. series of 6 drill programs totaling 40 holes aggregating 6171.16 meters were conducted on the property for Abitibi/ Sedex Mining. The programs targeted the depth and strike extensions under the main showing and were designed to follow up on several IP anomalies.
Drilling revealed two mineralized horizons designated as the Lower and Upper Zones, which included values of 5.16 gm/ t Au over 5.00 m and 7.02 gm/t Au over 3.70m. Visible gold was noted in four of the holes. Although the holes' locations were tied into the historical cut grid and appear to have been surveyed with control provided by at least one permanent survey station (S-04), many of the holes could not be located when georeferenced into the UTM coordinate system.
Atacama Resources International Inc. has not conducted any significant exploration work on the claims since acquiring the Tannahill Gold property. In preparation for planning an exploration program on the property and conducting a due diligence of the drilling, Atacama contracted the writer and Canadian Exploration Services to accurately locate the drill hole collars in the vicinity of the main gold showing and examine the stripped areas and historical showings to confirm the work done and sample locations.
Following the initial visit on May 15, 2023, crews surveyed all of the drill collars located in the central area of the property around the surface showing, locations for tickets from several 1999 chip/grab samples, for pickets encountered during the reconnaissance of the property, for a survey monument, for 3 historic trenches, and, for an undocumented historic drill hole in bedrock generating accurate Differential Global Positioning System (DGPS) coordinates for all of the features. The surveys were conducted using a Trimble Geo TX handheld instrument.
in addition to the field work, the drill core from historic holes T96-01/ 06/ 08/ 09/ 11 and 15, the better grading holes from the drill program, were retrieved from the secure CXS core storage facility west of Larder Lake. Also recovered was a wide anomalous zone of 11.8 m (core length) identified as the "Upper Zone" in the original log from hole T97-31. The intercept from hole T961 and a portion of hole T96-8 could not be found in the core storage compound and were therefore not resampled.
Once the core had been unbundled and reorganized at the core storage yard, it was transported to the CXS building in Larder Lake where it was unpacked and reconstructed by the writer. The significant historical assay intervals were re-logged/examined and re- assayed to verify the historic values as due diligence for a possible future resource calculation. Once cut, samples were bagged and hand delivered to the ALS prep lab in Rouyn- Noranda by the writer. In total, 72 samples were sent for assay including 64 samples of previously split core, 4 standards and 4, blanks. One standard (OREAS 236) and one blank were inserted into the sample intervals of holes T96-8, 8, 11 and T97-31. At ALS, Prep-31B was used for sample preparation and AA-26 as the assay method; re-assay by the Au- GRA22 method was requested for samples returning greater than 2 ppm (2 g/t).
Following a review of the drill logs, the writer extracted the significant intercepts from the Lower and Upper Zones and recalculated the composite horizontal widths times the grade of the zones to produce a contoured longitudinal section for the Lower Zone which appears to be the more extensive of the two. Two higher grade gold-bearing chutes centered on an easterly plunging alteration zone are inferred from the section.
Both the Lower and Upper Zones occur within "strongly altered mafic volcanic which are generally described as exhibiting pervasive carbonatization with quartz veining. Most of the significant intercepts are also associated with a fault, foliated or fractured zone, or tectonic breccia within or adjacent to the zone.
The Claims Development Process - Table of Contents
1. SITE PRELIMINARY RESEARCH METHODS
A. Govt assisted flight process
B. Major mining corporations sharing process
2. CLAIMS STAKING PLROCESS
A. Old site visit methods
B. New Electronic methods
3. PROSPECTING
4. TRENCHING
5. MAG PROCESS
A. Description and rationale
B. Process to accomplish
6. IP PROCESS
A. Description and rationale.
B. Process to accomplish
7. SITE CORING AND ANALYSIS
A. Description and rationale
B. Process to accomplish
8. RESOURCE PLANING AND PROVING
A. Description and rationale
B. Process to accomplish
9. PRODUCTION METHODS
A. Description
B. Different methods of production
10. Process and Revenue Returns
The rest of this report provides technical details that describe the history of Tannahill ground operations and current activities.
1. SITE PRELIMINARY RESEARCH METHODS
A. Government airborne coverage of specific areas of interest, usually by Townships and geological areas of interest. Areas are flown by helicopters or fixed-wing aircraft, and the airborne maps are released to the public afterwards.
FLY OVER OF PROPERTY WAS DONE PRIOR TO 1931
B. Sometimes major mining companies fly areas of interest.
Upon release of the airborne surveys, individuals, junior and senior mining companies look for airborne electromagnetic targets that may or may not have total field magnetic correlation, every target is graded for strength and strike direction and length. Once these targets are outlined and lie within a favorable geological horizon, claim staking is considered.
2. CLAIMS STAKING PROCESS
All claims are now staked electronically online with MLAS, a government site.
3. PROSPECTING
1931. V. JORDON - Pitting and trenching completed, and property dropped
1935 J.A.M. McClosky - Six original claims were brought to patent status, and two specific zones were established.
TRENCHING
1936 G.L. Holbrooke of Erie Canadian Mines Limited did trenching on the property establishing two types of showings. (43-101 result showings)
1939. mapping and sampling letter reported by J. McDonagh to J. C. Golden (reference 43-101)
1977 Trenching sketches submitted by M. Clarke (Reference 43101) Shows trenches cleaned out in a report by D. A. MacKeigan.
1990. T. Obradovich - Sample plan and assays for a stripped area immediately west of the patented claims was filed (Results attainable in the 453-101 document)
1991 G. Bastarache - Outcrop report and sketches were filed. (Reference available on the 43-101 Report)
1994. G. Bastarache - Mechanical and stripping and blasting summary filed (Reference available 43-101)
1999 T. Keast - Summary of VLF survey and Drilling program submitted. (Reference 43-101) some positive results found.
2008 Katine Exploration prospected the western and southern portions of the property to locate and GPS any historic and workings for client Abitibi Mining Group (Reference 43-101)
2013 E. Shynkorenko and P. Hermeston [prospected two single unit claims for Abitibi Mining Corp. (Reference 43-101 Document)
2014 E. Shynkorenko Did prospecting, and sampling and mapping on a 4-unit claim held by P. Hermeston (Reference 43-1201 filing for results)
2015 E. Shynkorenko did prospecting on a 4 unit claim immediately west of the former patented claim.
2017 E. Shynkorenko Prospected a 4-unit claim. (Reference 43-101 document)
2017 E. Shynkorenko - Conducted a follow up to a value of 2.96 g/t Au obtained during a prospecting traverse to this genus area in 2013 (Reference 43-101 documentation)
5. TOTAL FIELD MAGNETIC SURVEYS
Total field magnetic survey is a testing process where a magnetic field is used for detecting surface and shallow subsurface, discontinuities in materials such as iron, nickel, cobalt, and some of their alloys.
TOTAL FIELD MAGNETIC SURVEYS
May 2023 Atacama performed 15 km total field magnetic and VLF-EM surveys on the Tannahill claims to assist the geologist in choosing the prime areas to do IP work.
This process is essential to create cost-effective spending.
$24,000 US was spent for this exercise.
6. IP Process (Induced Polarization)
July – August 2023
This process evaluates the prime areas to drill in Lou of accomplishing the best results.
Money spent for IP was $ 51,477.12 U.S.
SITE CORING AND ANALYSIS
DRILLING:
A DRILLING PROGRAM WAS ESTABLISHED BY ATACAMA’S GEOLOGIST
17 Holes were drilled in the area and were stretched out from the original holes of which 42 plus were drilled. The holes were drilled to a depth of approx. 656 feet each resulting in 3200 samples being submitted for assay results.
Cost of this exercise was $322,000 US
Geology:
The geologists determined from the mag and IP work where to drill and monitored each drilling location to certify that the cores were legitimate and properly labeled. The cores were taken to the lab for assessment and were accompanied by the geologist to ensure authentication of the samples which legitimize the reporting results.
Geology Studies $36,000.00
Geology Evaluating $ 35,225.00
RESOURCE PLANNING
Final Analysis
Once all the assays from the last 17 holes are evaluated and put into a software program the Geologist will present a final report which will determine how big an area to drill and at what grid spacing needed to drill the area to accomplish what is available for commercial utilization. A detailed report of where to drill, how many new drills are required and at what spacing.
Stage one of these recommendations will apply to only the depth by which the drills went to. History dictates that the deeper you go the more and better grades of gold will be found. Gold at commercial viability at the surface is a strong attribute indicating bigger concentrations the deeper the claim is produced.
All the assays to date were done for gold only due to timing and cost. Samples will be sent out to different labs to determine other minerals on site as there is usually other minerals accompanying gold. This makes the claim even more valuable.
Cost for Resource Planning.
Est. $2,500,000.00 US (Price subject to final report)
PHASE TWO.
RESOURCE PLANNING AND PROVING.
DESCRIPTION
Prior to going into production environmental studies etc. need to be done and approvals must be signed off by all effected parties, Gov’t, communities in the aria, indigenous groups, other mining companies, fisheries and wildlife to name a few. This process is done with the proper Engineering company.
Est Cost: $4,000,000.00 US (to be determined once the Resource planning segment is complete)
PROCESS AND REVENUE RETURNS.
PROCESS:
There are many different methods of processing. Once the decision is made as to what should be extracted, the decision will take place concerning the method of extraction.
Open pit mining is the cheapest method and that is the rationale behind Atacama focusing on this first knowing full well there are bigger targets at greater depth.
Once the targets are staked, clients approach exploration contractors to complete an initial ground geophysical program consisting of a detailed total field magnetic survey that is usually done in conjunction with a very low electromagnetic, (VLF), survey along GPS controlled compassed and paced grid lines to locate and outline the airborne targets. These two survey types are generally geological type surveys that can easily locate and define the targets and identify their potential depth, strike length and strength and correlate them to the underlying geological features. These initial surveys are very cost-effective and highly successful in most areas but can be susceptible to clay and heavy swamp overburden areas.
Once these initial surveys are completed and the results are plotted and interpreted along with the underlying geology, a follow-up more detailed survey is done to prove the validity of any and all ground targets that were outlined.
Induced Polarization, (IP), surveys are then considered to test the strongest portion of the ground electromagnetic, (EM), targets. These surveys require detailed line-cutting to control the IP surveys.
IP surveys are proven surveys that can locate and outline strong EM targets of massive sulfide-rich zones comprised of sulfide-rich tenses, massive pods, stringer-rich zones, and highly disseminated sulfide-rich zones. Basically, the IP survey misses nothing. The depth of the zones along with their strength and the host rock they are associated with can also be determined in these IP surveys.
Once the surveys are completed and interpretation has been completed, the next phase would be to drill the best targets. This phase is handled by a qualified geologist who will spot the holes along with the aid of the Geophysical firm who completed the ground surveys. The drill sites are established with reference to the target locations and the holes are designed by the geologist as far as the dip, depth and azimuth of the hole to guarantee that the target is intersected properly.
The core from the drill hole is collected in core boxes and then shipped to a core facility where the geologist will visually log the hole describing the geology encountered in the drill hole and the type of mineralization outlined that may explain the geophysical target outlined by the ground surveys.
The mineralized section of the drill holes is then cut using diamond saws and half of the core is bagged, marked and then shipped to an assay lab that will test the samples for base metals, critical elements, rare earth and precious metal content, based on the type of property the work is being done on.
Once the assays are done, the geologist will prepare a report with the results of the assays, create a spreadsheet of the elements assayed for and create plan maps of the results. Further drilling will be based on these assay results.
If good assay results are found and additional drilling enhances these results and adds to the length, depth, and size of the target then additional "Fill In" drilling would be considered to better define the tonnage and expected grade of the assumed deposit.
If the defined deposit is considered viable then companies will look for additional resources from mid-tier and major mining companies to continue the follow up work and cost that can bring the deposit to production by either Open Pit Mining and/or Underground Mining.
Atacama Resources management is pleased to provide this initial ‘Tannahill Gold Claims Development Report’. An integral part of the company’s investor transparency commitment is to keep shareholders up to date on development activities related to the company’s mining assets. Similar claims development reports for the company’s other mining assets will be issued on a regular basis and appear on the company’s website.