Piche Resources has identified more than 19 new epithermal structures at its Cerro Chacón project in Argentina, including a 2km vein and rock-chip results of up to 10.41 g/t gold and 553.42 g/t silver. The next test is whether those surface signals translate into a coherent mineralised system at depth.
- 603 rock-chip assays completed across 9.6km²
- 10.41 g/t gold and 553.42 g/t silver peak results
- Jose Vein mapped over at least 2km at Toro Hosco West
- Potential magnetic survey and RC drilling under consideration
- A$4.24 million cash and 6.62 quarters of estimated funding
Cerro Chacón expands beyond its known prospects
Piche Resources Limited (ASX:PR2) has added scale to the geological story at Cerro Chacón, with mapping identifying more than 19 previously unrecognised veins and vein-breccias across the southern part of the Argentine project. The most prominent is the Jose Vein at Toro Hosco West, which extends for at least 2km, reaches up to 6 metres in width and averages 2.5 metres.
The company collected 374 rock-chip samples during the September quarter, completing a May to September programme of 603 samples across about 9.6 square kilometres between La Javiela and Toro Hosco. The results included a peak gold assay of 10.41 grams per tonne at Toro Hosco East and a peak silver assay of 553.42 grams per tonne at Toro Hosco Central. Those are surface samples, however, rather than a mineral resource or a drilling result. The earlier Cerro Chacón surface results reported the same peak assays and mapped extent, with drilling still required to test grade continuity at depth.
Mapping supports a continuous epithermal system
Piche said the field and geochemical data support continuity of a low-sulphidation epithermal system between La Javiela, La Javiela South and Toro Hosco, as well as a westward extension of the Toro Hosco vein field. At La Javiela South, seven new structures run between 300 metres and 1,000 metres long and are between 0.5 metres and 4 metres wide.
At Toro Hosco Central, two of the largest newly identified structures strike north-northwest for about 1,600 metres and 960 metres. The 553.42 g/t silver sample came from the northern end of the longer structure, which the company interprets as part of a broad, structurally controlled stockwork zone that may represent a feeder or dilation domain. At Toro Hosco West, samples from the Jose Vein returned up to 0.50 g/t gold and 67.2 g/t silver, while separate structures to the east returned up to 0.74 g/t gold.
Surface grades leave the depth question unresolved
The company’s geological model places La Javiela at a higher, more oxidised level of the epithermal system and Toro Hosco at a deeper, more eroded level. It said gold, silver, lead, molybdenum and arsenic generally increase to the south, while selenium was detected only in the south. Piche interprets that pattern as a possible indication that a precious-metal-rich level may be preserved beneath Toro Hosco.
That interpretation remains to be tested. Piche cited research on Patagonia’s Deseado Massif suggesting that weathering and supergene processes can leach gold from exposed veins and remobilise it deeper, potentially making surface samples an incomplete guide to underlying mineralisation. The company plans to resume mapping and sampling, consider a magnetic survey and consider RC drilling along strike and at depth during the December quarter. None of those activities had begun by 30 September.
Portfolio reset continues alongside exploration
Piche is also narrowing its Australian footprint, having disposed of the Abydos, Gascoyne and Beasley Creek projects after assessing them as low priority and having limited scope to reach meaningful scale. Its strategic review, supported by Dahrouge Geological Consultants, covers both the remaining portfolio and potential new opportunities. The board is continuing its search for a new chief executive, while the earlier Dahrouge-led portfolio review had not yet produced a revised exploration programme or acquisition announcement.
The company completed an entitlement offer and top-up placement during the quarter, raising A$3.582 million from equity issues before A$199,000 of transaction costs, according to the cash-flow statement. Cash was reported at A$4.24 million at quarter-end, with estimated funding of 6.62 quarters based on the reported net operating outflow of A$642,000. The Appendix 5B contains an apparent reconciliation discrepancy between the reported A$4.247 million closing cash figure and the A$4.209 million bank-balance line, a point that warrants clarification in subsequent reporting. Piche spent A$126,000 on exploration during the quarter, primarily in Argentina.
Bottom Line?
Cerro Chacón now has a larger mapped footprint and a clear set of proposed next steps, but the investment case still turns on whether drilling confirms continuity and grade below the surface.
Questions in the middle?
- Will Piche commit to RC drilling at Toro Hosco, and what targets will it prioritise?
- Can the mapped veins be connected into a mineralised system with meaningful continuity at depth?
- How will the strategic review reshape the portfolio, Ashburton’s rare-earth potential and the company’s capital needs?