ATACAMA GOLD CLAIMS POSITION A VALUATION ANALYSIS
NOVEMBER 1, 2018
Atacama owns the mining claims for Atacama 1, 2 and 3.
The claims are within four miles of the new Kirkland Lake Gold, Inc. (KLG) shaft.
KLG has committed several hundred million dollars to further recover gold in the region.
Atacama has acquired new historical information regarding the potential gold concentrations for Atacama 1.
Atacama has 1000 feet of core samples that have not been assayed. With visible gold noted at or near the surface near the core samples drill site,
it clearly is in the best interests of Atacama and its shareholders to selectively assay the stored core samples.
This document is prepared to inform shareholders and other interested parties about the possible valuation of the Atacama in-the-ground gold assets.
Atacama Resources obtained the mining claims to parcels Atacama 1, Atacama 2 and Atacama 3 in Kirkland Lake, Ontario in 2015. Everyone is aware that gold can be beautifully shaped and sculpted for use in fine jewelry.
The following discussion presents a comprehensive overview of the Atacama position in Kirkland Lake.
This has accounted for most of gold usage so far but the major upside growth potential for gold usage is in a variety of commercial uses.
Gold conducts electricity and does not corrode or tarnish. These qualities make it the metal of choice for a wide range of industries.
For instance, it is used in most electric/electronic devices including cell phones and laptops.
Nearly US$600 million worth of gold is used in the one billion cell phones sold each year!
As the world accelerates into the electrical/electronic gadget world of the future the demand for gold will surely accelerate along with it.
Dentists have used gold for fillings and crowns for nearly 3,000 years and today it is widely applied in medical treatments ranging from arthritis to cancer.
The future growth in the demand for gold is well documented.
Demand is going up, but supply is going down at a very fast rate.
New major gold discoveries are becoming extremely rare and Atacama Resources is in a favorable position.
These demand, supply and cost factors shape Atacama’s strategy to place serious focus on its 1360 acres located virtually adjacent to
Kirkland Lake Gold (KLG). KLG is a major gold producer and recognized as one of the richest gold mines in the world. KLG owns five former high-grade
producing gold mines located within the Kirkland Lake Camp that produced more than 22 million ounces at an average grade of 15.1 grams per ton
- all in a 120-kilometer fault zone which has produced more than 100 million ounces of gold. Atacama's claims are located along a southern strike of the same fault zone.
See site map and details below for more information.
Atacama 1 holds a long history in the Gold Bearing area of Kirkland Lake Ontario. Todora Syndicate Diamond Drilled 7 holes on the property.
High Gold, Copper and nickel showed in the drill holes.
Selected International Mines of London England leased 5 claims to Cheltonia-Swastika Mines Ltd. and sunk shaft 105 feet deep and 60 feet of lateral work on the 100-foot level.
In Totora-Kirkland Prospecting Syndicate acquired the property and staked 9 unpatented mines and 2 patented mines.
The property covers the strike of an apparent fault zone for over 3960 feet.
This zone appears to be a subsidiary fault to the Larder Lake “break” and is a favorable structure for the formation of Gold and Copper deposits.
In addition, more recent exploration at Atacama 1, and a more concentrated review of the results spread over fifty years indicate clearly that additional exploration,
geophysical analysis, drilling and assays is warranted at the property. For example:
Samples for copper were taken from trenches of 13.39%,6.12%,6.62% and 5.32%.
In 1971 Noranda Exploration Co. Ltd. had 4 samples assayed. Atacama will request the assay results from the Ontario Mining Cimmission.
In 1978 the properties were acquired by prospector Arnold Allsopp.
Three trenches were mechanically dug 300 feet apart and are located approximately 1000 feet west of the Cheltonia shaft. Each trench extends
northwards from the controlled base line.
Rick Yost Drilling carried out a drilling/core Program on the property.
Two holes were completed to a depth of five hundred feet each and one thousand feet of drill cores are in storage awaiting assays.
Visual gold (you can see it with the naked eye) exists in the cores
While the drilling was undertaken an excavator was used to Power Strip (trench) over burden to expose the rock surface.
Here again, at the surface rock exposure, visual gold is evident.
While gold was found at the surface and throughout the rather shallow drill holes, the provincial geologist and Kirkland Lake Gold
both have indicated and proven that gold values increase the deeper the deposit.
This is good news for Atacama. Plan to assay the core samples at over 500 feet.
Arnold says that values of 1/4 ounces/ ton exist at or near the surface. This value is EXTREMELY high.
Atacama Resources International Inc. acquired the properties and has since diamond drilled two core locations.
There was enough indication to warrant major work on the property as expressed by the geologist in the Atacama 1,2 and 3 property report, which is available on request.