Picha Copper Silver Project

The Picha Copper-Silver Project is located in the Moquegua and Puno Departments of southern Peru, approximately 17km ENE of Buenaventura’s (NYSE:BVN) San Gabriel Au-Cu-Ag development project, which reports proven and probable reserves of 1.94Moz of gold (see www.buenaventura.com for details). Other significant copper projects in the district include Berenguela, Trapiche, Antilla and Pinaya.

The Picha mineral rights and applications totalling 20,000 hectares are held by Australian-listed explorer Valor Resources (ASX: VAL), with Lara entitled to a 2% NSR on any precious metals produced and a 1% NSR on base metals on the original core licenses totalling 3,800 hectares.

Valor has been actively exploring the core licenses of the property since 2021, completing detailed geological mapping, geophysics (IP/Resistivity and Magnetics) and geochemical sampling program over the core properties acquired from Lara.

In the 2021 field program the best results (see www.valorresources.com.au for details) were as follows:

• 35.6m @ 1.3% Cu and 22.85g/t Ag – channel sample (Cobremani)
• 17.6m @ 1.95% Cu and 29.5g/t Ag – channel sample (Maricate)
• 40.5m @ 0.49% Cu and 6.37g/t Ag – channel sample (Cumbre Coya)
• 15.75m @ 0.70% Cu, 233g/t Ag and 2.95% Pb – channel sample (Cumbre Coya)
• 0.5m @ 1.88% Cu and 80.9g/t Ag – channel sample (Fundicion).

Geophysics comprised an IP/Resistivity survey covering 57 line kms and a ground magnetic survey covering 204 line kms:

• Large IP anomaly identified – anomaly reflects potential sulphide mineralisation at depth relating to a large porphyry body.
• The IP anomaly is approximately 2km long in a north-south direction and 2km across at its widest point (NE-SW orientation).
• Widespread surface copper mineralisation coincident with the chargeability (IP) anomaly provides an extensive and exciting drill target.

Spectral study of 74 rock samples indicates alteration zones proximal to porphyry-type deposits – five spectral anomalies identified.

The 2022 program identified several new targets that are not covered by the Lara royalties, in addition to additional results from the core target area acquired from Lara which is to be drilled in 2023 (see Valor Resources ASX announcement of February 14, 2023, for details), following the latest phase of surface sampling.

• Maricate: 2.0m @ 1.18% Cu and 13.9g/t Ag; 6m @ 1.55% Cu and 13.8g/t Ag; 4.0m @ 2.15% Cu and 84.5g/t Ag; 2.0m @ 3.39% Cu and 56g/t Ag; 2.0m @ 1.27% Cu and 57g/t Ag;
• Cumbre Coya: 2m @ 1.15% Cu and 11.6g/t Ag; 2m @ 1.51% Cu and 20.4g/t Ag; and
• Fundición: 2m @ 0.91% Cu and 9.67g/t Ag.

Valor has applied for a 40 platform, 120 hole (three per platform) drilling permit and expects to be able to begin drill testing the main targets in 2023, with a 5,000m maiden program planned to test the Cobremani, Cumbre Coya, Maricate and Fundicion targets (see Valor Resources March 1, 2023, ASX announcement for details).

QAQC and Qualified Person

Valor Resources reports that 651 rock chip samples were taken as selective samples in mineralised areas, channel samples across mineralised structures/zones or more random samples in undefined mineralised areas. Selective rock chip samples are taken for an indication of mineralisation only. All samples were taken from in-situ mineralisation. 289 soil samples were taken at a 200m sample spacing. The ‘B’ horizon was sampled by digging a 0.5m deep, 0.5m x 0.5m pit. The excavated material was sieved through a -600µm mesh to obtain a sample fraction. Soil samples were taken at regular 200m intervals where soil quality permitted representative sampling. Where possible, sample spacing was kept within +/- 5m of the planned sample site. To date Valor has taken a total of 1086 samples at Picha Project, which includes 10% of blank and certified reference materials as QAQC samples. The selective samples have a high potential for bias and should not be considered as being representative of the overall mineralised structure or zone. Selective sample sites were selected on the basis of visual copper mineralisation and where there is associated with opaline silica and alteration. No determination of mineralisation was made when taking systematic soil samples.

Samples were assayed by SGS del Peru S.A.C, Callao, Peru. A multi-acid (four-acid) digest (near-total digestion) was used. The digestion solution was then analysed by ICP-MS for a multi-element suite of 50 elements. A 30g Fire assay with AAS finish was used to determine Au. CRMs (Standards and Blanks) and duplicates were inserted for QAQC protocols approximately every 10 samples.

Michael Bennell, Lara’s Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and has approved the technical disclosure and verified the technical information herein.