Los Carlos Project
| Location: | Sonora State, Mexico.18km south of GoldGroup's Cerro Colorado mine and 85 km west of Timmins Gold's San Francisco mine. The property has excellent infrastructure with existing drill roads. |
| Area: | 15,915 Hectares |
| Minerals: | Gold and Silver. Historical workings 80 - 100 years old |
| Status: | Drill ready targets |
| Ownership: | 100% Optioned over 3 years* |
Project Highlights:
- Located in the prolific "Sonora Mojave Megashear" in Sonora State, Mexico, which hosts numerous operating and developing gold mines including Goldgroup's Cerro Colorado mine and Timmins Gold's San Franscisco mine
- The Los Carlos Project area boasts excellent infrastructure including existing drill roads, ample water, grid power close by, relatively flat terrain and a local work force experienced in leading-edge, modern day mining and exploration activities
First phase of drilling complete and consisted of 1500m over seven holes. All seven drill holes intercepted gold and silver mineralization
Significant drill intercepts include:
LCD12-02 from (m) to (m) interval (m) Au g/t Ag g/t AuEq g/t 94.0 164.0 70.0 0.54 10.0 0.74 LCD12-05 from (m) to (m) interval (m) Au g/t Ag g/t AuEq g/t 16.0 69.0 53.0 0.58 5.0 0.68
Action Plan:
- Los Carlos
- Currently re-assaying 2 of the 7 drill holes using screen/fire assay.
- Free gold has been detected during regular QA.QC check assaying, resulting in gold assays >50% higher
- Detailed mapping of new drill targets
- Los Carlos II
- 2000m of trenching over Emma and JoJo zones to better identify drill targets
- Mapping and sampling of new gold zone discovered 1km north of Emma zone
- First pass reconnaissance exploration over this 15,500ha. property
History:
Los Carlos is located in the very prolific "Megashear" of Mexico which hosts numerous operating heap leach gold mines and others in development. The property has many historical workings apparently 80 - 100 years old, which targeted gold and silver in 1m - 3m wide oxidized shear structures. Sample results provided by the optionors indicate ranges of 5g/t - 30g/t gold and 20g/t - 200g/t silver from the historical workings.
Property Geology:
Regionally the oldest rocks are gneiss and schist of lower Proterozoic age. The quartzites and dolomites are upper Proterozoic age and are located on the southern part of the property. The Jurassic age is represented by sedimentary rocks such as sandstones and polimictic conglomerates. Alluvium covers all other lithological units.
Rhyolite porphyry outcrop covers most of the Los Carlos property. The porphyry exhibits moderate to intense pervasive silicification and is made up of fine grain texture; sporadic quartz eyes and is of lower Tertiary age.
Mineralization:
Numerous NW faults are intersected with multiple EW shears/fractures approximately 5m -- 10m apart. The intersection of these two orientations appears to provide ample conduits for significant precious metal deposition. The rhyolite host rock between these E-W shears contains abundant veinlets and micro vienlets where gold grades range from 0.1g/t - 2.0g/t gold, again highly oxidized.
*Terms of the acquisition (in US dollars) are:
- Cash payments of:
- $15,000 on signing (paid)
- $55,000 year 1
- $100,000 year 2
- $330,000 year 3
- Optionors retain a 1.5% NSR, which can be purchased by the Company at any time for $1 million; and
- A bonus payment of $500,000 to be paid to the Optionor if 250,000 ounces of gold are generated in the "proven and probable resources" category according to 43-101 compliant regulations.
- An additional bonus payment of $500,000 to be paid to the Optionor if 500,000 ounces of gold are generated in the "proven and probable resources" category according to 43-101 compliant regulations.
