Gold State Resources Inc. announced that it has finalized the acquisition (the Acquisition) of the mineral claims comprising the Panteria copper-gold porphyry project (the Project) from Peruvian Metals Corp. (Peruvian). The Project is located approximately 210 kilometres southeast of Lima, Peru, in the Huancavelica department, and is considered highly prospective for both copper-gold (Cu-Au) porphyry-style mineralization and high-level gold-silver (Au-Ag) epithermal mineralization.

Approximately USD 5 million has been spent to date on the Project that has several untested exploration targets. The Project is composed of several mineral concessions covering an area of 2,700 hectares and is believed to be situated in the northern extension of the Southern Coastal porphyry belt. Peruvian acquired the project in 2010 and conducted extensive surface sampling and mapping programs followed by a small geophysical program in 2014.

Peruvian recognized the porphyry potential of the area, and through fieldwork, identified the high-level Renaldo Au-Ag zone 4.5 kilometres east of the main Panteria zone. First Quantum Minerals Ltd. (First Quantum) optioned the project from Peruvian and explored the area from 2016 to 2018. A total of 8,699 metres were drilled on the Project by First Quantum in 11 holes.

Five main mineralized zones were identified on the Project by Peruvian and First Quantum: the Kisosko, El Corral, NW Corral, La Quebrada and Renaldo zones. To date the El Corral and NW Corral zones have proven the most prospective for Cu-Au porphyry mineralization while the Renaldo and Kiosko zones are considered high-level Au-Ag precious metal targets and have not been drill tested. The drilling by First Quantum mainly focused on the El Corral and La Quebrada zones.

Porphyry-style mineralization and alteration, defined by the drilling, have a minimum 1,300-metre horizontal extent and an over 700-metre vertical extent in the subsurface. Highlights of the drill program included diamond drill hole (DDH) PANDD-006 located in the El Corral zone that intersected tourmaline-healed and hydrothermal breccias starting at 320 metres returning 31.30 metres of 0.497% copper and 0.676 g/t gold, or 0.94% copper equivalent, within a broader interval of 125.80 metres of 0.252% copper and 0.283 g/t gold, or 0.44% copper equivalent. DDH PANDD-002, drilled 750 metres southwest of PANDD-006, intersected two intervals of intense phyllic-altered diorites, 127.1 metres of 0.15% copper and 0.143 g/t gold, or 0.24% copper equivalent, and 0.13% copper and 0.13 g/t Au, or 0.21% copper equivalent, starting at 195 and 413 metres, respectively.

Hole PANDD-004, drilled 350 northeast of PANDD-006, intersected classic-style quartz stockworks commonly associated with Cu-Au porphyry systems, returning 0.16% copper and 0.07 g/t gold, or 0.21% copper equivalent. The large horizontal and vertical extent of the porphyry-style mineralization and alteration indicates a large hydrothermal system is present, typical of porphyry systems. Copper equivalent values for by-product gold are calculated using a copper price of USD 3 per pound and a gold price of USD 1,340 per ounce. The untested Renaldo zone is considered a gold-silver precious metal target, located 4.5 kilometres east of the main Panteria zone.

Since 2014, a total 323 rock samples have been taken by Peruvian and First Quantum. Rock chip sampling from this prospective zone covers an area measuring one by two kilometres. Ronaldo zone sampling and mapping encountered gold and silver mineralization in a high-sulphidation lithocap that is hosted in shallow-dipping volcanics at higher elevations.

Transactions details: Gold State has acquired Empresa Querco SAC (Querco), Peruvian's subsidiary, for consideration of CAD 7,000. Pursuant to the terms of the Acquisition, Querco will acquire the Project for consideration to Peruvian of a total of USD 200,000, with 50% payable now upon closing and 50% payable six months thereafter.