Pampa Metals Mobilises Drill Rig to Copper Projects in Northern Chile

VANCOUVER, BC / ACCESSWIRE / June 16, 2021 / Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIRA)(OTCQB:PMMCF) is pleased to announce that it has mobilised a reverse circulation ("RC") drill rig to its 100% owned Redondo-Veronica project in northern Chile. The Company plans to drill approximately 2,000 metres out of a total planned program of 4,000 metres, with the balance to be drilled at its Cerro Buenos Aires project. Drilling is expected to start later this week.

The Company plans to complete an initial drill test totalling 5 or 6 RC holes at the Redondo Extremo Norte, Cerro Redondo Norte, and Redondo SurOeste targets at its 6,600-hectare Redondo-Veronica project. These targets are characterised by a combination of geological, hydrothermal alteration, and geophysical features that have been interpreted to be representative of porphyry copper systems. The Cerro Redondo Norte target has been the subject of an historic drilling program with unknown results.

Drilling Program

As previously reported (see news releases dated February 25, 2021; March 23, 2021; and June 2, 2021), Pampa Metals has been advancing rapidly with its exploration program on several of its projects, with detailed geological mapping, geophysical surveying, and incorporation of historic data where available.

Five centers of phyllic hydrothermal alteration, which are potentially indicative of porphyry copper style mineralisation, have been identified at Redondo-Veronica, all of which are spatially associated with the Pampa Elvira Fault (PEF) of the Domeyko Fault System, and that traverses the project area from northwest to southeast. Three of the five targets have been selected for an initial drill test to investigate the hydrothermal alteration in the third dimension at depth, which have favourable geophysical features including magnetotelluric resistive, 3D vector IP phase, and magnetic anomalies.

• Redondo Extremo Norte occurs in the extreme north of the property and to the east of the PEF, and is characterised by "D"-type quartz veinlets associated with phyllic alteration over an area of approximately 1.5 km by 1.5 km. This is considered to be indicative of a well-preserved porphyry copper system, and includes 1 peripheral historic RC drill hole of unknown provenance and result, and remains open.
• Cerro Redondo Norte contains an area of historical exploration interest, with several drill platforms and evidence of completed RC drill holes of unknown provenance and results over an area of approximately 800m x 800m, within a larger area of hydrothermal alteration some 2 km NE-SW by 1.5 km NW-SE in size. This area is located to the west of the PEF and although outcrop is poor, contains evidence indicative of porphyry copper systems including widespread phyllic alteration with spaced "D" type quartz veinlets, NW and NE trending quartz-sericite-pyrite structures, tourmaline flooding, and some evidence for the presence of "A" type quartz veinlets. Historic drill cuttings left at surface reveal the presence of pyrite and copper oxides.
• Redondo SurOeste corresponds to sericite-chlorite veinlets identified to the southwest of Cerro Redondo Norte, which have a spatial relationship with a poorly exposed zone of quartz "A" type veinlets with the presence of copper oxides oriented on a NE-SW trend. This area is provisionally interpreted as a northeast oriented porphyry system, approximately 1.8 km long by 1.2 km wide, located between two N-S branches of the Pampa Elvira Fault. The area of interest shows no evidence of historical drilling.

Once drill testing at Redondo-Veronica has been completed, estimated at around 1 month, the drill rig and support crews will be mobilised to the Company's Cerro Buenos Aires project, and specifically the Cerro Chiquitin target area in the north of the property, where a further 2,000 metres of drilling will be completed. Assay results are expected to be available some 3 weeks after the drill program is completed at each project area.