Pampa Metals Starts IP Geophysical Program at its Block 4 Project to Refine Drill Hole Locations at Buenavista and to Explore Post-Mineral Cover for Further Drill Targets

VANCOUVER, BC / ACCESSWIRE / May 24, 2022 / Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIRA)(OTCQB:PMMCF) is pleased to provide a further update on exploration activities at its 6,800-hectare Block 4 project in northern Chile, and announces the start of an Induced Polarisation ("IP") geophysical program at the property including coverage of the Buenavista target.

Block 4 is located along the principal porphyry copper belt of northern Chile, about 110 km south of the giant La Escondida copper mine. The principal target identified to date, called Buenavista, comprises a poorly exposed quartz-veinlet stockwork zone hosted within a dacite porphyry intrusion, which is spatially coincident with a magnetic high and anomalous molybdenum geochemistry. Copper oxide occurrences and anomalous gold values are zoned around the central stockwork zone.

Key Takeaways:

A ground magnetics survey and follow-up geological fieldwork led to the discovery of a porphyry-related quartz-veinlet stockwork zone spatially coincident with a magnetic anomaly (see news release date November 18, 2021), subsequently named the Buenavista target. A trenching program returned copper and gold values including 24 m @ 0.14% Cu and (separately) 24 m @ 0.25 g/t Au (see news released date March 15, 2022).

The trenching program at Buenavista revealed relicts of coarse chalcopyrite dissemination from a skarn-type system on the eastern edge of the stockwork zone, as well as green and black copper oxide mineralization from in-situ oxidation of gold-bearing chalcopyrite-pyrite mineralisation in a quartz-sulfide breccia on the west flank of the stockwork.

Other magnetic anomalies, with similar footprints to that at Buenavista, were also defined under post-mineral "pampa" cover to the north and east. These anomalies are located on NW and N-S faults and lineaments of the Domeyko Fault System, where past exploration has identified copper-gold mineralization in quartz structures.

The IP survey is designed to investigate the presence of sulphide minerals, which may suggest additional targets for possible drill testing, related to the various post-mineral covered magnetic anomalies, as well as helping map out the sulphide progenitors to the oxide copper occurrences at the Buenavista target.

Block 4 - Details of Geophysical Surveys

A total of 37 line kilometers of pole-dipole IP surveying have been contracted with Quantec Geoscience Chile Ltda. ("Quantec"), a long-standing and reputable geophysical contractor. Survey work has already started in the field. The survey total will be distributed between five east-west lines with 200m dipoles that cross a series of magnetic anomalies detected under post mineral cover, as well as the Buenavista target area. One line over the Buenavista stockwork zone, quartz-sulfide breccia, and skarn-type mineralization observed in the trenching, will be surveyed twice with 200m dipoles and 100m dipoles, in order to obtain the best possible resolution with respect to deep and shallow sulphide mineral sources.