Pampa Metals Delineates High Grade Porphyry Cu-Au Mineralization at Piuquenes

Delineation of a continuous body of high-grade porphyry Cu-Au mineralization from surface to depths of greater than 800m at Piuquenes Central.

Pampa Metals Corp. has provided a summary of its highly successful maiden drill program at the Piuquenes porphyry project, San Juan, Argentina. The Piuquenes project was optioned on 30 November 2023 and the Company mobilized a 3 diamond drillhole program for 2,592m on 7 December 2023, which was completed to high safety, environmental and community standards.

As reported on 18 March 2024, 6 May 2024 and 23 May 2024, each of the three drillholes intersected significant intervals of copper, gold and silver mineralization as follows:

PIU01-2024DDH

• 422 m @ 0.48% Cu, 0.61 g/t Au, 2.9 g/t Ag (198-620m);
  • including 132 m @ 0.71% Cu, 0.85 g/t Au, 4.3 g/t Ag (220-352m)
  • Including 80 m @ 0.6% Cu, 0.77 g/t Au, 3.2 g/t Ag (468-548m)

PIU02-2024DDH

• 448 m @ 0.42% Cu, 0.46 g/t Au, 2.44 g/t Ag (214-662m)
  • including 188m @ 0.59% Cu, 0.63 g/t Au, 3.49 g/t Ag (450-638m)
  • including 126 m @ 0.66% Cu, 0.74 g/t Au, 3.94 g/t Ag (450-576 m)

PIU03-2024DDH

• 801 m @ 0.40% Cu, 0.51 g/t Au, 2.87 g/t Ag (54 - 855m (EOH))
  • including 518 m @ 0.53% Cu, 0.73 g/t Au, 3.45 g/t Ag (192 - 710)
  • including 176 m @ 0.71% Cu, 0.74 g/t Au, 4.86 g/t Ag (192 - 368)
  • including 64 m @ 0.75%, 1.2 g/t Au, 4.60 g/t Ag (554 - 618m)
  • including 32m @ 0.64% Cu, 0.71 g/t Au, 4.54 g/t Ag (642 - 674m)

Key Technical Findings

• Delineation of a continuous body of high-grade porphyry Cu-Au mineralization from surface to depths of greater than 800m at Piuquenes Central.
• High grade Cu-Au mineralization remains open to depth and to the north-east.
• Confirmation of a multi-phase porphyry system, with strongly developed A type quartz stockwork veining hosting extensive chalcopyrite and bornite mineralization carrying significant copper and gold grades.
• Abundant bornite mineralization encountered both centrally and within the outer margins of the porphyry system, highlighting significant potential for an underlying bornite rich core to the deposit.
• Low average arsenic content reported in assays.

Property Wide Upside Potential

Pampa Metals' mineral tenure extends for over 3km to the north of the Piuquenes Central porphyry Cu-Au deposit, with minimal exploration conducted over the area to date. The underlying geology is almost entirely masked at surface by thin transported cover, with no exploration drilling having been completed under this cover.

Isolated outcrops of advanced argillic alteration have been mapped up to 3.5 km northeast of the Piuquenes Central system. (Fig. 1).

At Piuquenes East, sheeted and locally stockworked fine grey quartz-sulphide veins have been mapped at surface in an area of rare outcrop. These veins are similar in character to veins encountered in some of the gold-rich Miocene porphyries in Chile.

Porphyry districts typically contain multiple mineralized centres, and the Company considers it extremely encouraging to have already delineated a highly mineralized system, with a second highly promising target also outlined within a substantially talus covered property package that has been subject to minimal exploration.

Current Activities

Following completion of its maiden drill program at Piuquenes, the Company is now focused on the integration of recent drilling data with historical information. Concurrent work programs include geological modelling, grade and lithology interpretation aided by multi-element geochemical data, and reprocessing and interpretation of historical geophysical data.

Metallurgical testing and mining concept studies for Piuquenes Central are also being considered.

Preparations are underway for the next field season, which will include further drill evaluation of the Piuquenes Central deposit, the initial drill testing of Piuquenes East, field mapping and further geophysics if required.

Joseph van den Elsen, Pampa Metals President and CEO commented: "We are very pleased to have reported extraordinary, long intervals of primary copper and gold mineralization from our maiden drill-program at Piuquenes Central. Our initial drilling has extended the depth and lateral extensions of mineralization at Piuquenes Central and confirmed a highly mineralized multi-phase porphyry system which remains open to depth and to the north-east. The Piuquenes project is a Company making asset and we look forward to more fully delineating the size and grade potential of this first deposit and concurrently testing a second undrilled, outcropping porphyry already identified at Piuquenes East. We see the potential for a cluster of deposits and will continue to advance several other nearby targets with surface exploration and geophysics."

Historical Exploration - Piuquenes Central

The Piuquenes copper-gold porphyry project covers ~1,880 ha in the San Juan Province of Argentina, adjacent (to the north) with the Altar copper-gold porphyry project (Aldebaran Resources Inc.) and approximately 190 km west of the city of San Juan. Other large porphyry copper projects in the San Juan Miocene porphyry belt include, El Pachón (Glencore), approximately 30 km to the south, the operating Los Pelambres copper mine (60% Antofagasta plc) in Chile, and Los Azules (McEwen Mining) 50 km to the northeast. Since its discovery, the Piuquenes project has remained privately held.

The first evidence of copper oxides at Piuquenes was reported in 1970 by Compañia MInera Aguilar SA, who subsequently completed the first exploration program between 1973-1975. Between 1995 and 1997, Inmet Mining Corporation (IMC) completed a heli-magnetic/radiometric survey, surface geology, rock and soil geochemistry, ground magnetics, PD-IP and eight diamond drillholes (P1A to P8A) for a total of 1,894.2m. Subsequently, in 2015-2016, Anglo American Argentina (AAA) completed detailed 1:2,500 geology and geochemistry, 17.8 km of gDAS24 deep 3D PD-IP/NSMT and a 920.2 m diamond drill hole (PIU16-DDH01).

Inmet Mining Corporation (subsequently acquired by First Quantum in 2013) intersected significant copper and gold mineralization including:

P8A 413.5 m (167-580.5 m) @ 0.47% Cu, 0.52 g/t Au;

P4 67.5 m (207-274.5 m) @ 0.63% Cu, 0.51 g/t Au ; and

P2 158 m (3-161 m) @ 0.32% Cu, 0.6 g/t Au.

In November 2023, Pampa Metals re-logged and assayed the 920.2 m Anglo-American Argentina diamond drill hole which had crossed the mineralized zones intersected by IMC. Results were reported in a news release dated 5 December 2023 as follows:

PIU16-DDH01 558 m @ 0.38% Cu, 0.42 g/t Au, 2.4 g/t Ag (362-920m EOH)

including 296 m @ 0.5 % Cu, 0.5 g/t Au, 2.7 g/t Ag (362-658 m)

including 180 m @ 0.71% Cu, 0.61 g/t Au, 3.8 g/t Ag (362-542 m)

including 130 m @ 0.81% Cu, 0.6 g/t Au, 4 g/t Ag (362-492m)

Table 1: 2024 Drill Program Collars (operator Pampa Metals)

Table 2: Historical Drill Collars (IMC & AAA)