London-listed mining company Cloudbreak Discovery (LSE: CDL) and Alianza Minerals (TSX-V ANZ, OTCQB: TARSF) have completed a surface sampling programme at the Klondike Property in Colorado, United States, identifying a new target at Northeast Fault.
The Klondike project is located approximately 25 kilometres south of Naturita, Colorado, and lies within the Paradox Copper Belt, which includes the producing Lisbon Valley Mining Complex. The property consists of 76 unpatented mining claims, a State of Colorado Exploration Permit and an exclusive right to a State lease.
Cloudbreak is a natural resources project generator, which means it takes a multi-asset approach, acquiring a range of undervalued mineral assets across a number of different commodities and jurisdictions. This diversified approach therefore reduces single project risk to Cloudbreak and to investors.
Strategic Alliance of partner firms
Cloudbreak works as part of the Strategic Alliance of partner firms, including Alianza Minerals, to discover and develop mining projects. The Klondike project is the first project acquired under the Strategic Alliance. Under the terms of the alliance, either company can introduce potential projects, which are subsequently held on a 50/50 basis. Funding of the initial acquisition and any preliminary work programs will be funded to the tune of 40% by the introducing partner, and 60% by the other party. Project expenditures are determined by committee, consisting of two senior management personnel from each party.The rock sampling and mapping programme at Klondike has expanded the footprint of the West Graben Fault and East Graben Fault targets and will help define drill targets. The programme has also identified a new target named the Northeast Fault, where sampling has returned 1.56% copper and 1.4 grams per tonne silver over a 4.6 metre chip sample of bleached, bitumen spotted and altered Jurassic sandstones of the Saltwash member of the Morrison Formation.
Copper mineralized sandstones at the Northeast Fault target can be traced along the fault and outboard from it into the adjacent sandstones over an area 200 metres long by 100 metres wide before becoming obscured beneath gravel cover. Further anomalous copper, including 2.1 metres of 463 ppm copper, was encountered over one kilometre to the northwest where the structure and host strata next appear from beneath the same gravel cover.
Kyler Hardy, President and CEO of Cloudbreak, reflected on Klondike, commented: “We are in a great position at Klondike having defined three high priority areas at the West Graben, East Graben and Northeast Fault targets. Each target has demonstrated anomalous copper mineralization over two kilometres of strike length and up to 200 metres outboard from the faults themselves. We look forward to being able to drill test these areas.”
Jason Weber, President and CEO of Alianza Minerals, added: “The size of the target, strength of the copper mineralization and enticing possibility that it persists under gravel cover make it an important, high priority drill target at Klondike.”
Last month, Cloudbreak announced it had acquired a second US copper project called Stateline Property in conjunction with Alianza Minerals. The deal covers 22 unpatented mining claims from local prospectors in both Colorado and Utah. Cloudbreak and Alianza Minerals have said will continue to identify, acquire and develop copper projects in the south-western US states of Arizona, Colorado, New Mexico and Utah.
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery
