Salazar Resources Limited announced that it has consolidated 100% ownership of the Santiago Project, located approximately 37 km north of the city of Loja in Loja Province, southern Ecuador, and provides a comprehensive update on the project?s exploration history and forward strategy. Santiago hosts a compelling copper-gold porphyry target beneath a near-surface epithermal system. A broad program of historical drilling, airborne geophysics, and recent surface sampling has collectively defined a coincident geochemical and geophysical anomaly measuring approximately 3 km by 2 km - with the core of the porphyry system interpreted to remain entirely untested at depth.
With full ownership now established, Salazar is positioning Santiago as a key priority for its next phase of exploration. Location Loja Province, southern Ecuador Concession Area 2,350 hectares (single concession) Ownership 100% Salazar Resources Target Type Copper-gold porphyry with near-surface epithermal overprint Anomalous Zone ~3 km × 2 km (coincident geochemistry, geophysics & alteration) Porphyry Core Untested at depth - primary opportunity for future drilling. Historical Drilling by Newmont (1998): Three shallow drill holes intersected significant Cu-Au mineralization within the lithocap, interpreted to overlie a porphyry system at depth: FUD-01: 323.09 m @ 0.23% Cu and 0.40 g/t Au (0.72% CuEq), including 10.80 m @ 0.58% Cu and 0.40 g/t Au (1.07% CuEq); FUD-02: 267.80 m @ 0.24% Cu and 0.43 g/t Au (0.76% CuEq), including 170.95 m @ 0.33% Cu and 0.55 g/t Au (1.00% CuEq); FUD-09: 295.17 m @ 0.22% Cu and 0.20 g/t Au (0.46% CuEq), including 67.86 m @ 0.79% Cu and 0.27 g/t Au (1.12% CuEq).
Airborne MobileMT Geophysical Survey by Adventus Mining (2019): A large, coherent low-frequency conductivity anomaly was identified beneath the lithocap, interpreted as a sulphide-rich porphyry system at depth. A complementary TMI-RTP magnetic low (~2 km × 1.5 km), encircled by areas of higher magnetic response, is consistent with magnetic mineral destruction from hydrothermal alteration. Surface Sampling Program by Adventus Mining 2021?2022 (1,477 Samples): A combined Au-Cu geochemical anomaly of approximately 3 km × 2 km was defined, confirming and complementing historical results.
Within the 599-sample anomalous core zone: 47% returned >250 ppm Cu (values to 0.9% Cu); 34% returned >0.11 g/t Au, with 45 samples exceeding 0.5 g/t Au and a maximum of 21.1 g/t Au. Alteration mapping (141 Terraspec samples and field mapping) confirmed quartz-alunite, phyllic, and propylitic assemblages ? consistent with a preserved porphyry system.
Epithermal Targets - Española Vein (Historical Rock Chip Samples): 2.0 m @ 28.10 g/t Au and 231 g/t Ag; 1.0 m @ 26.00 g/t Au and 242 g/t Ag; 1.0 m @ 18.20 g/t Au and 252 g/t Ag; 1.0 m @ 4.80 g/t Au and 442 g/t Ag. All historical drilling tested only the near-surface lithocap - the porphyry core at depth has never been drill-tested. Geochemical and geophysical data define an anomalous vertical extent of approximately 500 m, from the surface lithocap to lowest copper anomalies on surface.
3D reinterpretation of all available datasets confirms the porphyry core remains open and accessible. Salazar will analyze all available technical information to develop a targeted exploration program and determine best strategy to realize value for shareholders. Santiago consists of a single concession totalling 2,350 hectares, located approximately 37 km north of the city of Loja in Loja Province, southcentral Ecuador.
The project sits geologically within the Western Cordillera of the Ecuadorian Andes, on the eastern margin of the Cangrejos-Zaruma Intrusive Belt. Volcanic formations of the Saraguro Oligocene formation - comprising andesitic and dacitic lavas and tuffs intruded by granodioritic dikes - characterize the local geology. The alteration and mineralization assemblage is indicative of a medium- to high-sulphidation epithermal system, exhibiting intense alunite-quartz alteration and surrounded by mesothermal structures enriched in gold and silver.
These structures appear to overlie a potential deeper Cu-Mo porphyry system at an estimated depth of 200?700 m. Evidence suggests that the gold mineralization is transitional between the porphyry and epithermal systems. Exploration at Santiago began under a 1964 agreement between the United Nations Development Program and the Government of Ecuador, with regional work conducted between 1970 and 1972 across an 8,328 km² area. Early exploration identified copper-molybdenum stream sediment anomalies near Fierro Urco, along with mineralized intrusive rocks hosting gold, silver, zinc, and lead. Subsequent work by Prospection Panama S.A. (1971?1981) included geochemical surveys, geophysics, and limited drilling.
Results confirmed broad zones of copper mineralization but were not followed up after concession expiry. From 1982 to 1991, PREDESUR carried out additional exploration focused on identifying a porphyry copper system through sampling and geological mapping, though no drilling or geophysical surveys were completed. In the early 1990s, Ag Armeno Mines & Minerals acquired the concession and partnered with other companies, including Newmont and Pactech.
Newmont?s work (1993-1994) targeted an epithermal gold system, identifying a large gold anomaly supported by extensive sampling and geophysical surveys. Despite drilling over 4,500 metres and intersecting wide zones of low-grade mineralization, results did not meet expectations for a Yanacocha-style deposit, leading to Newmont?s withdrawal. Importantly, this program tested only the shallow lithocap - the porphyry source at depth was never the focus and remains undrilled.
Subsequent work by Pactech and Minera Climax refined the geological interpretation, suggesting structurally controlled mineralization extensions. After a period of inactivity, the project was revived in 2005 by Mariana and subsequently acquired by Salazar Resources in 2010. Renewed work emphasized favourable geology, extensive hydrothermal alteration, and mineralized vein and breccia systems, with sampling of sulphide-bearing structures confirming significant gold and silver values.
In 2018, Salazar and Adventus Mining included Santiago in a country-wide exploration alliance, 80% owned by Adventus and 20% by Salazar. The Alliance completed an airborne Mobile MagnetoTellurics geophysical survey over Santiago at 150-metre line spacing. Results defined a low-frequency apparent conductivity anomaly and resistivity anomaly of approximately 3,000 by 2,000 metres, accompanied by a TMI-RTP magnetic low of approximately 2,000 by 1,500 metres, encircled by areas of higher magnetic response - the magnetic low being suggestive of magnetic mineral destruction from hydrothermal alteration.
The Alliance then worked to validate these historical anomalies and preliminary targets through the 2021?2022 field program.
