Arcas Copper/Gold Project

The Arcas project consists of four blocks of exploration concessions (Arcas, Quiltro, Lia and Timon, collectively the "Arcas Project") located in the northern extreme of the Antofagasta Administrative Region (Region II) in Chile. The Arcas Project is located in the Atacama Desert, at elevations of 1,500‐3,800 meters.

The four concession blocks constitute a combined area of approximately 66,800 hectares of granted exploration concessions. These fall along the greater West Fissure‐Domeyko mineralized trend which hosts numerous world‐class porphyry copper deposits (e.g. Escondida, Chuquicamata, Collahuasi, El Abra). Despite their location along a major mineral belt, these properties have seen limited modern exploration and they remain in a preliminary stage of exploration. 

On the main Arcas concession block, some 16 initially favorable prospects have been identified to date, of which several clearly merit follow‐up exploration work in order to identify potential drill targets. Of these, only one has been historically drilled (1,500 metres total drilled by Teck Exploraciones Chile, to a maximum depth of 350 metres) with porphyry-style copper-gold mineralization demonstrated. 

The remaining three concession blocks, named Timón, Quiltro and Lía, have also produced significant geochemical and alteration anomalies, but work to‐date on these concession blocks remains preliminary and follow‐up reconnaissance exploration remains pending.

During 2018, Aethon is expected to conduct a two-phase work program on the Arcas Project.   Phase 1 will consist of a reconnaissance program over the terrain in the four concessions block, with a subsequent synthesis of all of the reconnaissance sampling, geological mapping and geophysics. Phase 2 will consist of drilling selected prospects identified in Phase 1 using the reverse circulation method.