Comparing Darwin Project to Successful Chilean IOCG and Copper Deposits

Based on the early-stage findings at the Darwin project, I can draw some comparisons with Chilean deposits that ultimately became economically viable. This comparison helps assess Darwin's potential relative to known successful projects in the region.

Candelaria (IOCG Deposit)

Early Exploration:

• Initial surface samples showed copper grades of 1-3% and gold values of 0.2-3 g/t
• Discovery of magnetite-rich outcrops with elevated copper
• Magnetic and gravity anomalies identified beneath surface expressions

Current Status:

• 1.2 billion tonne resource at 0.60% Cu, 0.13 g/t Au
• Over 30 years of successful mining operation

Comparison with Darwin:

• Darwin shows significantly higher gold grades (up to 247 g/t vs. 0.2-3 g/t)
• Similar copper grades in surface samples (Darwin's 8.09% max vs. Candelaria's 1-3%)
• Both show magnetic anomalies and magnetite association
• The higher gold grades at Darwin could indicate a different part of an IOCG system, potentially closer to the gold-rich portion

Atacama Kozan (IOCG Deposit)

Early Exploration:

• Surface sampling revealed 1-5% Cu and 0.1-2 g/t Au
• Strong magnetite-hematite alteration zones

Current Status:

• 50 Mt at 1.6% Cu, 0.35 g/t Au resource

Comparison with Darwin:

• Similar copper values but Darwin shows much higher potential gold grades
• Both display strong iron oxide association (Darwin has samples up to 66% Fe)

Manto Verde (IOCG Deposit)

Early Exploration:

• Initially discovered through surface copper oxide mineralization
• Early sampling showed 0.7-2.5% Cu and trace gold
• Strong correlation with magnetic features

Current Status:

• ~400 Mt at 0.56% Cu resource
• Successful open-pit operation

Comparison with Darwin:

• Darwin shows higher grade surface samples for both gold and copper
• Similar magnetic signature patterns
• Both found in the same metallogenic belt

El Salvador (Porphyry-IOCG hybrid)

Early Exploration:

• Surface sampling of 0.5-2% Cu
• Initial drill intercepts of 0.6-1% Cu over significant widths

Current Status:

• Over 50 years of production
• Initial grades of ~1.5% Cu

Comparison with Darwin:

• Darwin shows better surface copper values
• El Salvador had consistent mineralization over larger areas at depth

Key Differentiators for Darwin

1. Exceptionally High Gold Grades: Darwin's gold values (up to 247 g/t) are substantially higher than what was found in early exploration of most economic deposits. This could indicate either:
   • Extremely rich localized pockets that may not represent the broader system
   • Potentially superior economics if the grades persist at depth
   • A different part of the IOCG system than typically found at surface
2. Multiple Mineralization Styles: The presence of both high-grade gold and copper in separate locations suggests multiple mineralization events or zoning, similar to what's seen in productive IOCG districts.
3. Historical Workings Trend: The 1km trend of historical workings suggests past miners recognized consistent mineralization over distance, which compares favorably with the early indicators at deposits like Candelaria.
4. Scale of Magnetic Anomalies: The size and intensity of the magnetic anomalies at Darwin appear to be similar to those that led to the discovery of larger IOCG systems.

What To Watch For

For Darwin to follow the path of successful Chilean deposits, the upcoming drilling program should demonstrate:

1. Continuity: Whether the high grades found at surface extend to depth with reasonable continuity
2. Volume: Sufficient mineralized material to support mining operations
3. Consistent Metal Ratios: More consistent Cu:Au ratios that align with known economically viable IOCG deposits
4. Alteration Patterns: Progressive alteration zoning typical of larger IOCG systems

Conclusion

The early indicators at Darwin compare favorably with the initial discoveries of several successful Chilean deposits, with Darwin showing exceptionally high gold grades. The magnetic anomalies, extensive historical workings, and Cu-Fe-Au association all align with patterns seen in the early stages of what became economically viable operations.

However, surface sampling is inherently selective, and the true test will be whether the upcoming drilling confirms these promising surface indications at depth and with sufficient continuity. The most successful Chilean deposits typically showed more consistent grades across larger areas, but often at lower overall grade than what Darwin's surface samples suggest.

If the high-grade surface expressions at Darwin are indicative of a larger mineralized system with reasonable continuity, the project could potentially exceed the economic parameters of historical discoveries, particularly given the exceptional gold credits.

Future Positive Indicators for a Strong Deposit at Darwin

Based on what we know about successful IOCG and copper deposits in Chile, here are the key future signs that would positively indicate a strong deposit at the Darwin project:

Drilling Results

1. Consistent Mineralization at Depth
   • Drill intercepts showing >0.5% Cu and/or >0.5 g/t Au over significant widths (>10m)
   • Mineralization extending at least 200-300m below surface
   • Multiple holes confirming continuity between sections
2. Grade Distribution
   • Presence of higher-grade zones (>1% Cu equiv.) within broader mineralized envelopes
   • Reasonable correlation between surface samples and subsurface mineralization
   • Consistency in Cu:Au ratios across the deposit
3. Width and Scale
   • Wide intercepts (>50m) of economic mineralization
   • Multiple parallel or stacked mineralized zones
   • Mineralization footprint exceeding 500m x 500m

Geological Characteristics

1. Favorable Structural Controls
   • Confirmation of major fault/shear zones controlling mineralization
   • Evidence of multiple mineralization events (often indicative of larger systems)
   • Breccia zones with consistent mineralization (common in productive IOCG deposits)
2. Alteration Patterns
   • Progressive alteration zoning (sodic→calcic→potassic) typical of IOCG systems
   • Extensive development of iron oxides (magnetite/hematite) in association with Cu-Au
   • Hydrothermal alteration extending beyond the mineralized zones (indicating a large system)
3. Mineralogy
   • Presence of chalcopyrite rather than just surface copper oxides at depth
   • Association with favorable gangue minerals (magnetite, actinolite, albite)
   • Low content of deleterious elements (As, Sb, Bi, Hg)

Geophysical Responses

1. Magnetic Features
   • Strong correlation between drilling success and magnetic anomalies
   • Large (>500m) coherent magnetic bodies at depth
   • Magnetic signatures similar to known large IOCG deposits in the region
2. Gravity Anomalies
   • Coincident gravity and magnetic anomalies (classic IOCG signature)
   • Gravity data indicating significant mass at depth
3. IP/Resistivity Results
   • Chargeability anomalies correlating with known mineralization
   • Resistivity contrasts defining alteration boundaries

Resource Definition Indicators

1. Grade Consistency
   • Low coefficient of variation in assay results (<1.0)
   • Predictable grade trends across the deposit
   • Limited need for capping of extreme high-grade values
2. Metallurgical Characteristics
   • High recoveries (>80%) in preliminary metallurgical testing
   • Conventional processing requirements
   • Clean concentrates with minimal penalties
3. Infrastructure Advantages
   • Confirmation of favorable mining conditions (geometry, rock quality)
   • Minimal water table issues
   • Amenable topography for open pit development

Comparison Metrics

As drill data comes in, these specific metrics would indicate Darwin is on track to become an economically viable deposit:

1. Copper Equivalent Grade × Width
   • Values of >100 (e.g., 1% CuEq over 100m or 2% CuEq over 50m)
   • Multiple intercepts exceeding this threshold across the project
2. Mineralization Density

   • 10 million tonnes of mineralization per 100m vertical extent

   • Resource growth continuing at depth
3. Grade-Tonnage Ratio
   • Initial resource estimates showing >100,000 tonnes of contained copper equivalent
   • Grade declining by <20% as tonnage increases (indicating cohesive mineralization)

The first-pass drilling program scheduled for early 2025 will be crucial for establishing these indicators. If multiple drill holes hit significant mineralization that correlates with the magnetic anomalies, this would substantially de-risk the project and confirm its potential to become a significant deposit like others in the Chilean IOCG belt.