February 2017

La Viuda – Cu – Mo (Au) Project, Chile

Contact Information

Igor Collado
igor.collado@gmail.com
+56 9 9979 1340
Aquiles Alegría
aalegria@segea.cl
+56 9 65899004
Eduardo Valenzuela)
ev@andes.com.au
+61 402 553 994

SCM MEGALO
Luis Matte Larrain 908
Las Condes
Santiago
Chile

Generalities

✓ Location: The prospect is located in Chile, 240 km north of the city of Santiago, and 150 km southeast
of the city of La Serena and the nearbyport of Coquimbo counting with a major airport and a mechanized
mining port.
III
✓ Mining Property: 4 exploration licenses (900 ha).
✓ Owner: The Project is 100% controlled by SCM Megalo. A Chilean private group.
Work Done to Date

• Since 2016 to February 2017:

✓ December 2015: The Megalo porphyry system was discovered by Chilean geologists
✓ Early 2016: The company Sociedad Contractual Minera Megalo (SCM Megalo) was created by a group
of four Chilean professionals (geologists and mining engineers with extensive international experience),
owners of the Megalo project, in order to start work on the project. Subsequently, an exploration plan
was started to find other mineralized bodies and look at other project opportunities around Megalo
✓ October 2016: La Viuda was discovered as part of a district exploration program.
✓ January 2017: An strong exploration program was developed on La Viuda property
▪ Geology map
▪ Geochemical sampling
▪ XRay determination

• According to the geological information obtained from mineralization, alteration, structure and lithology, this
deposit has geological characteristics of a porphyry copper, and some elements of a "stratabound". According
to its specific affiliation of sericite-chlorite alteration, and high gold grade, it could be assigned as a Cu-Au
type porphyry. In addition, the hypothesis we propose is that this deposit should be a simile of the Andacollo
porphyry, which has been described as a Cu-Au porphyry of the Lower Cretaceous by Llaumet 1984, and
Reyes, 1991. The Andacollo district has a long history of large-scale gold and copper mining.
Geology and Mineralization

✓ The La Viuda project is inserted in an elongated Mining Cluster approximately N15 ° W, following a
regional structural trend, where there are mainly 9 porphyry copper deposits, such as the Llahuin
Porphyry System (Llahuin, Cerro del Oro, Ferrocarril, South, North porphyries) owned by Southern
Hemisphere Mining, the Llanos Porphyry owned by Hochschild and Gomila, the Tulio Porphyry owned by
small miners, and La Viuda, Megalo and Megalo Norte? porphyries (Sociedad Contratual Minera Megalo).

✓ The mineralization is observed in intrusive and extrusive rocks.

✓ These intrusives are diorites, generally highly altered to sericite-chlorite, and disseminated mineralization, and
especially in quartz veins with central suture (type B), with many surface boxworks with copper oxides
(primarily green atacamite, and copper wad and copper Pitch black oxides, limonites and hematite, and in
some cases sulphides with chalcopyrite and subordinate bornite can be observed.
✓ In the extrusive (andesitic - riodacitic) rocks, it is observed strongly disseminateds copper oxides, following
the mantle stratification of the volcanic rocks.
Geochemistry