At the Santa Teresa property, extensive surface and underground mapping have prioritized two main exploration targets.
The San Jose Zone is at least 500 meters long and has had limited artisanal production dating from the early 1900’s, from at least 4 sets of adits and internal shafts. Mineralization consists of oxidized zinc-lead-copper-silver mineralization with average grades in the area of 4-6% combined Zn-Pb, 1 to 3 oz/ton Ag with locally significant copper and gallium (grab samples as high as 340 g/t gallium) values. The main target is a steeply dipping shear zone or chimney hosted by a moderate to shallowly dipping limestone/shale succession. The shear zone is locally in excess of 10 meters wide and was explored by several sets of workings over a vertical extent of at least 75 meters. No modern exploration or drilling has been carried out. The company intends to test this zone by drilling three 500 meter holes below the old workings.
The La Florida Zone has been traced on surface for about 600 meters and has also been explored and had limited production from a number of underground workings over a vertical extent of about 120 meters. Several narrow vein/shear zones of oxidized zinc-lead mineralization are present within a permissive zone roughly 75 meters wide. The old workings targeted Zn-Pb mineralization in steeply dipping composite veins and/or shears roughly 1.0 to 2.5 meters wide. In general, the mineralization averages 2 to 4% combined zinc-lead with low silver values (5 to10 g/t). However, there is evidence of minor stringer –type mineralization between the wider structures such that a larger, bulk-mineable scenario might be possible. This possibility is further enhanced by the presence of significant values in vanadium and gallium with the predominant zinc-lead mineralization. Of the 81 samples taken from the old workings, 31 samples returned values greater than 1000 ppm V (0.18% V2O5) and 5 samples returned values greater than 10,000 ppm V (1.8%V2O5). Of the 81 samples taken from the workings,19 reported values greater than 20 g/t gallium to a high of 161.5 g/t gallium. The Company plans to complete a program of detailed mapping and sampling of the underground workings to establish average grades over the entire width of the permissive zone.
At the Corrales property, an induced polarization/resistivity survey was inconclusive in tracing the surface mineralization because of the presence of conductive overburden. A number of oxide type, zinc-lead-copper-silver occurrences are found within a zone of alteration and bleaching in essentially flat terrain. The zone is about 1000 meters long and between 100 to 400 meters wide and is surrounded on three sides by large areas of shallow pediment cover. Mineralization consists of irregular replacements and veins of secondary zinc, lead and copper minerals which can locally be relatively high grade (up to +10% combined lead-zinc, +1% copper and 15 oz/ton silver). However because of the irregular nature of the mineralization, extensive cover and the lack of information on the geometry of the system, it is difficult to get a sense of ultimate size potential and average grade. For this reason the company intends to drill a pattern of shallow percussion (air track) holes to test the continuity and grade of the mineralization. Contingent on the success of this program, a more extensive campaign of core drilling may be implemented.
The aforementioned potential quantities and grades have been determined by reconnaissance mapping and sampling conducted by the Company, and is conceptual in nature. There has been insufficient exploration to define any mineral resources. It is uncertain if further exploration will result in the targets being delineated as mineral resources.
The technical data in this news release has been reviewed and approved by James M. Dawson, P. Eng., Consultant to the Company, who supervised the work and who is a qualified person under the definition of National Instrument 43-101. The work was also reviewed by Gary Belik, P.Geo., a qualified person under the definition of National Instrument 43-101. Assays were conducted by ALS Chemex, a company with quality control procedures in place.
For additional information please contact Andy Hay at 604-682-4750.
Forward-Looking Statement Cautions:
This press release contains certain “forward-looking statements”, as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to the exploration programs at the Corrales and Santa Teresa properties. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change, except as required by law. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company’s exploration plans. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
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