Chandman

The Chandman property area is located in mountainous basin and range country in eastern Khovd Aimag, western Mongolia, about 1,050 km west of the capital Ulaanbaatar. It consists of 2 Mining Licenses, both of which are 100% owned by Altan Rio, subject to a 2.5% NSR. The tenement position focussed on epigenetic, porphyry copper-gold mineralisation, and stratabound skarn copper-gold mineralisation related to Cambrian-aged granitic intrusions, and gold-copper mineralised fault zones.

Summary

Targets: Copper-gold porphyry intrusions and associated skarns in the Sayan-Altaids arc system

Area: ~1,273 ha (12.73 km2)

Location: Khovd Aimag, western Mongolia

Ownership: Two (2) Mining Licenses owned 100% by Altan Rio with a 2.5% NSR

Chandman Project - Overview_sm

Permitting

The project is fully permitted for all exploration activities and enjoys strong support from local government administrations.  

Geology

The Chandman-Yol area lies within the Khyargas Nuur sub-terrane of the Pre-Cambrian to Early Paleozoic “Lake” Terrane. The structure of the area can be described as NW trending antiform structures expressed by mountain range tops. The geology at Chandman-Yol is dominated by numerous fault slices of Vend-Cambrian metasedimentary rocks (sandstone, siltstone, argillite, limestone) and volcaniclastic units. Intruded into the Vend-Cambrian sequence are numerous island arc type calc-alkalic intrusives dating to the Mid-Cambrian. A specific biotite granite phase is linked to mineralisation (Cu, Au, As, Mo, Ag, Sb, Zn, Pb) and shows broad zones of intense quartz-sericite-pyrite (+chalcopyrite) alteration, thought to represent a high-level near-typical Cu-Au porphyry system with distal iron-rich skarns.

Chandman Project - Local Geology_sm

Summary of Work to Date

Several campaigns of field work including geological mapping, sampling, geophysics (induced polarisation and magnetics) preceded three phases of drilling.

Chandman Project - Mag-RTP_sm Chandman Project - RTP Magnetics
Chandman Project - IP -Chargeability_sm Chandman Project - IP - Chargeability
Chandman Project - Rock Chips - Copper_sm Chandman Project - Rock Chips - Copper

There were drilling campaigns in 2009 and 2010 consisting of 17 diamond drill holes for 5,167.7 m. Significant gold-copper mineralisation was intersected in 3 of these drill holes (CH-09, CH-10 and CH-16). The best intersection was in the DDH CH-09 Del target skarn zone:32.13 m @ 1.49 g/t gold, 0.60% copper and 8.07 g/t silver; including 10.39 m averaging 2.71 g/t gold, 0.91% copper and 12.11 g/t silver. Further gold-copper mineralisation was intersected in DDH CH-10: 10.75 m @ 1 g/t gold, 0.65% copper and 4.8 g/t silver.

The geologically significant hole DDH CH-16 was aimed at the upper reaches of a deep-seated IP chargeability feature, forming part of an apparent shell around the porphyry intrusion at depth. The hole was completed to a depth of 524 m, the limit of the man-portable drill used for this hole.

A marked structural zone was crossed at 469 m, below which strong potassic alteration and sulphide stockworking became much more abundant. Assays in the 55+ m wide porphyry-style alteration zone ranged up to 0.28% copper and 1.5 g/t gold with elevated arsenic and silver values as well

image: "Core running about 119 g/t Ag from CH-28 @ 108 m, showing intense kspar alteration with silica and finely disseminated base-metal sulfides (strong QSP alteration)"

Summary of work to date, continued

It is apparent that the drill just pierced the outer margins of one of the large high-amplitude IP features of the hypothesized “sulfide shell”. Soil geochemical surveys carried out by Altan Rio have shown pronounced copper-gold-zinc anomalies centred on and distal to a Cambrian-age porphyry intrusive complex (called the “KY intrusion”) approximately 4 km in diameter. The KY skarn zone southeast of the porphyry intrusive is the locus of strong copper-gold-silver-zinc geochemistry. Complex fault structures located to the west and southwest of the KY skarn zone show gold-copper-molybdenum soil geochemistry. Detailed IP and Resistivity surveys show that a number of strong anomalies are present within the KY intrusion itself, most strongly developed at depth, and within structural zones marginal to the intrusion. The IP chargeability feature at depth in the KY intrusion is a large-scale concentric feature nearly 2 km in diameter and up to 1 km in vertical extent, with a high resistivity core zone – geometry typical of other large, upright, copper-gold porphyry systems. The ground magnetic data shows a large annulus of pronounced magnetic anomalies surrounding and distal to the KY porphyry stock. The reduced to pole (RTP) magnetic data also shows several linear features, interpreted as major fault structures trending northeast-southwest and northwest-southeast across the southeastern flank of the porphyry intrusive complex. Encouraged by the 2009-2010 results, the main higher chargeability portions of the anomalies were targeted in the 2011 field-season with a further 13 diamond drill holes (7,814.4 m). All drilling was wide-spaced, testing an area of about 4 x 3 km. The following results were achieved: All holes drilled intersected elevated metal values, with frequent 0.5% Cu and 0.5 g/t Au from 1 to 3 m core samples Highest gold grade achieved: CH-27, 1 m @ 28.02 g/t in a “sea” of low level Au and Cu

Reconnaissance hole CH-09 returned an impressive 32.13 m @ 1.49 g/t Au and 0.6% Cu

CH-28 silver intersections in the KY porphyry intrusion

13.2 m @ 43.12 g/t, including 1 m @ 106.31 g/t and 1 m @ 118.86 g/t

39.6 m @ 24.57 g/t, with 2.5 m @ 128.3 g/t and 2.2 m @ 114.26 g/t

Chandman Project - Drilling_sm Chandman Project - Drilling
Chandman 2011 IPChandman Chargeability Cross-section Showing 2011 Drill Hole and Target Depth


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