Junin Mineral Property: Geology

Regional Geology

The Junin project is situated in the anticlinorium-synclinorium zone of the Occidental Cordillera. The mining district of Imbaoeste is located in the Pallatanga terrane, to the north of latitude 1°00' S and between the regional Toachi-Guayrapungu Faults of the Guayaquil Fault Suture to the west and the Pujilí Fault Suture to the east. The Pujilí Fault system contains a series of complex anatomising faults that mark the eastern limit of the Cretaceous-Tertiary sequences of the Andes range and its contact with the Quaternary volcanic deposits of the inter-Andean graben.

The Pallatanga Unit, in the South (Azuay District), is a sequence of ocean related basic and ultra basic rocks (Pre-Cenomanian). In the Imbaoeste district the Pallatanga terrane shows a change of facies, with two additional units, dominantly sedimentary, of Cretaceous age. The Pilatón unit was formed by a turbiditic submarine delta sequence with indicative material of a volcanic effusive source of basic to intermediate composition. The Mulaute Unit comprises a volcano sedimentary sequence located among the Pilatón Unit and the Toachi-Toacazo Fault.

Local Geology

The area of the project is located on the western flank of the Western Cordillera of the Andes. The geology around the project area consists of rocks from granitic acid to intermediate composition, dominated by the Apuela-Nanegal Batholith, some 60 km in length by 10-20 km width. The batholith has been intruded by quartz, granodioritic and dioritic porphyries, which have been interpreted as intrusive facies of the batholith. The age of the batholith and of the porphyry bodies are Middle Miocene and Late Miocene, respectively. The batholith and its associated porphyries contain the Junin Cu-Mo porphyry mineralization and are intruding the Mulaute Unit.

The Apuela Batholith exhibits the main northwest-southeast and northeast-southwest Andean alignments, but also has important the north-south and east-west structures. According to K-Ar dating, the granodioritic batholith has an age of 13 to 15 Ma with the intrusive porphyry at 6 to 11 Ma.

The classification of the different porphyritic intrusions was carried out by thin section analysis. The porphyries correspond to a quartz porphyry (quartz and plagioclase), granodioritic porphyries (plagioclase and hornblende with few quartz phenocrysts), and a dioritic porphyry (30 to 70% mafic minerals and sporadic phenocrysts of quartz and feldspar).

Deposit Types

Three copper porphyry occurrences have been recognized as being associated with the Apuela Nanegal Batholith. From northeast to southwest these are: Cuellaje, Junin and El Pacto. In addition, there are cupriferous skarns in Selva Alegre (to the north east) and auriferous epi-mesothermal vein mineralization in the El Corazon prospect (to the south west) that are related to the batholith.

The three porphyry deposits are aligned northeast-southwest. It appears that their location is structurally controlled by a fault along the course of the Piñon River. This secondary fault that interconnects the regional Andean faults of dextral movement may be extensional in nature.

The project area shows a high level intrusion of granodioritic batholiths and quartz porphyry bodies, with copper and molybdenum mineralization found disseminated in quartz veins and in quartz veinlet stockworks associated with hydrothermal alteration zoning.

The Ecuadorian porphyry copper and molybdenum deposits are not considered "classical" as compared with those of the American southwest and are designated as 'plutonic' or 'volcanic', but with hypabyssal levels of emplacement. Junin is considered to be 'plutonic' in this respect.

Exploration

Ascendant has not conducted its own exploration work on the project. Exploration work conducted by previous operators is summarized in "Description of Properties – Junin Property – History" above.

Activities by Ascendant for the Junin area to date include compilation and reinterpretation of the previous work. The following breakdown of these activities is provided by Ascendant and consisted of geological and engineering costs of $134,547, of which $11,366 was incurred in connection with the preparation of the Junin Report, $8,493 for a scoping study, and $114,688 for engineering and field costs incurred in connection with road construction on the Junin property. Field office costs consist of general and administrative expenses for the maintenance of Ascendant’s offices and operations in Quito, Ecuador, and for community relations expenses related to the Junin property.

Mineralization

Copper and molybdenum mineralization is present in quartz veins, quartz vein stockworks, and as disseminations related to the phyllic – potassic hydrothermal alteration of quartz porphyry and granodioritic intrusions across the property. The mineralization appears to be strongly associated with the stockwork zones, but is also related to contact zones with the granodiorite and in fracturing related to the intrusion of the youngest porphyries. The latter are interpreted as feeders for ascending hydrothermal solutions.

The intrusion and emplacement of these porphyry bodies (as stocks and dykes) and thus their contained mineralization, is structurally controlled by regional and/or local northeast structures of the Andean trend. These are clearly identified in the northwest sector of the project (in the Esperanza stream area), around the Intag River that marks the eastern limit of the project, and additionally by north-south and northwest-southeast structures (Junin River) that marks the central area of the project.

The primary structural fabric is thought to be defined by the northeast structures, with north-northwest orientated secondary structures. Both structural systems appear to have been activated over a period of time, namely pre-, syn-, and post-mineralization. The intrusion of the porphyry is associated with the dynamic tectonism of the northwest structures, of dextral character, that has generated tensional and dilation structures with a northeast orientation (as exhibited by the Fortuna and Controversia streams). The porphyry intrusions strike north-northeast, dipping at between 45 to 70°, approximately to the south-southeast.

The economic primary mineralization comprises copper and molybdenum minerals, being primary hypogenic Cu sulphides such as chalcopyrite and bornite; and secondary Cu mineralization of chalcocite, covellite, malachite, tennantite, and others. Mo is present as molybdenite. Also present in minor quantities are Au and Ag, with absolute values dependant upon further analysis. Primary copper sulphides represent the identified economic mineralization. Secondary enrichment zones are not well developed, though they are thought to be present in the central southeast part of the project.

Drilling

Diamond drilling campaigns were carried out during 1991 to 1997 by the CODIGEM-JICA-MMJA workers. These are summarized in the table below. No information is available as to the contractors or companies who carried out the drilling work.

Drilling appears to have been largely NQ in size. The holes were mostly vertical, passing through the mineralized zones(s) at an oblique angle. This gives intersection lengths that are greater than the true thickness of the interpreted orientation of the mineralized zone, but this is accounted for in the resource estimation methodology.