Chaucha Mineral Property: History

1968–1969: The Chaucha mineralization was discovered during a regional geochemical survey in July of 1968 where fluvial sediment sampling produced a number of strong anomalies. This was part of Phase I of the mining research project of the United Nations, carried out between 1964 and 1969 in the southern part of Ecuador. Follow up work until March of 1969 included geological mapping, geochemistry and geophysics. The geological survey covered an area of 120 km2 including 425 stream sediment and 837 rock samples (498 chip samples, 394 soil samples) over an area of 40 km2. The geophysics included a recognition magnetometer survey that covered 70% of the area of chip sampling. These studies identified the main areas of interest as Rio Malacatos, Rio Angas, Rio Lanto-Rio Angas, Rio Pita and Rio San Jose.

1970-1972: Two exploration studies were carried out between April 1970 and March 1972 by the Overseas Mineral Resources Development of Japan. These studies reduced the study area from 306 km2 to the 30 km2 of the current concession area. The hydrothermal alteration zones were studied by thin sections, defining the nature of the alterations zones within the project area. A total of 1,452 soil samples were collected in a survey carried out over an area of 14 km2. An induced polarization geophysical survey was carried out over the same area, studying depths between 75 and 125 m. This was complemented at 50 m intervals with magnetometer readings. This survey produced an anomaly coincident with the pyritic halo shown by the geochemical survey. A drilling program resulted.

In the northern part of the Naranjos sector a horizontal tunnel (adit) of some 344.5 m was excavated. This was sampled by OMRD and resampled by DGGM in their later campaign. The sampling interval was 2 m for the north and south drives, and 1 m for the east drive. The adit is no longer accessible. The OMRD sampling returned significantly higher results when compared with the DGGM re-sampling. Analysis of sample results from each location shows that the mean of the OMRD samples are between 22 % and 37% higher than the DGGM re-sampling and that correlation coefficients are less than 50%. No details of the sampling method or sample preparation were available to Micon. Examination of drill core analyses for drill holes closest to the adit, and on a similar horizon to that of the adit, does not give a definite indication as to which sampling regime is likely to be correct.

The Chaucha concession area was returned to the Ministry of Energy and Mines at the end of 1972.

1973-1977: In February 1974 a mining technical cooperation project was established between the governments of Ecuador and Belgium and the Chaucha area was chosen for further study. The work completed by OMRD formed the basis for the program which expanded the Chaucha study to include exploration of areas around the Naranjos sector. These studies involved geochemistry, geological mapping at a scale of 1:10,000 and trench and pit excavation. The latter focused on the breccia bodies, particularly in the Pita Medio and Rio Lanto sectors. A total of 176 hand dug pits and 7 trenches, totalling 166 metres resulted.

1978-1989: The Belgium Mission with the Ecuadorian Mining Institute ("INEMIN") re-evaluated the area and completed new maps, geophysics, drilling, tunnels, petrography and metallurgic tests. Later Chaucha was classified as a national mining reservation by the Ecuadorian Government, eventually being turned over to private companies for continued exploration.

1992-1996: Armeno Resources of Ecuador Inc. ("Armeno") obtained the concession in July, 1992 and granted a 65% option to Kookaburra Resources Ltd. to carry out further exploration. Fluor Daniel Wright (January 1993) and Beacon Hill Consultants (April 1993) were contracted to estimate the reserves of the oxide and of the secondary ore bodies and to complete a pre-feasibility study. Kookaburra abandoned its option and pre-feasibility studies prior to completion.

Later Armeno granted a 50% option to Ecuadorian Copperfields, which directed exploration efforts between 1994 and 1995. Eventually this joint venture was extended to include Ecuadorian Minerals Corporation, which carried out colluvial geochemistry and core sampling to test for gold. Armeno and their partners released the concessions in 1996 and the property passed to Carlos Puig & Asociados S.A.

No information was available to Micon for the exploration work carried out during this period, although it is known that Armeno and their associates carried out various studies, particularly in the Naranjos sector. Ascendant is actively seeking to obtain detailed information.

1997-1998: Billiton and their associates worked in the Gur-Gur/Rio Lanto sector, carrying out geochemical sampling and drilling at least five holes. No detailed information was available to Micon for the exploration work carried out during this period. Ascendant is actively seeking to obtain detailed information.

2003: On November 7, 2003, Ascendex was granted the Janeth 1 concession under the Cuenca Mining Property Registrar.

2004: On September 17, 2004, Ascendex transferred this concession to Ascendant Copper Corporation.