Mexico

Property Description and Location

The Cuitaboca Project is located in the state of Sinaloa, Mexico, approximately 100km NE of the city of Los Mochis and 80km NE of the city of Guasave. Access is by a 30km dirt road from the village of Agua Caliente de Cebada, Sinaloa (Figure 1).

Figure 1 Cuitaboca Project location and Concession Boundaries


Geology

Regional Geologic Setting

Cuitaboca is situated on the western margin of the Sierra Madre Occidental (SMO) geological domain, a 1500 by 250 km volcanic province formed during late Mesozoic to early Cenozoic subduction off the west coast of Mexico. The basement consists of plutonic and sedimentary rocks overlain by two groups of extrusive volcanic rocks. The lower volcanic group comprises mostly intermediate composition andesite and dacite flows and is overlain by the upper volcanic group dominated by felsic composition rhyolites, rhyolite tuffs and felsic ignimbrites (Staude and Barton, 2001). Most of the major Au-Ag deposits in the SMO lie within the lower volcanics (McDowell and Clabaugh, 1981) (Figure 2).

Figure 2. Mexico terrain showing Cuitaboca in relation to a select number of Au-Ag epithermal mines in the Sierra Madre

Local Geology

Cuitaboca lies in the foothills of the SMO dominated mostly by andesite flows and tuffs of the lower volcanic group, with minor rhyolites of the upper volcanic group at higher elevations. Au-Ag rich polymetalic mineralisation is hosted in the lower volcanic group andesites.

The Concession area shows at multiple well-known veins with sulphide mineralisation carrying high grade silver +/- gold +/- lead +/- zinc +/- copper. Outcrops vary from 100 to >3km long with observable thicknesses from 0.5m to 4m wide. The main structures are La Lupita-El Pinal veins and the La Piedrita and Blanca Esthela prospects in the Northern Sector, Los Sapos, El Chapotal, La Plata and Jesus Maria-Colateral veins in the Central Sector and the Mojardina, Santa Eduwiges veins in the Southern Sector.

The San Jose de Gracia deposit (owned by Dyna Resources, Inc) which is located only 15km along strike from the Cuitaboca La Lupita – El Pinal vein (Figure 3), has recently been ascribed an inferred resource of 741,000 oz of Au with historic production of circa 1M oz Au suggested in the 1800’s.

Figure 3 Cuitaboca regional scale map with feature of interest the probable alignment of high grade Dyna Resources, Inc's San Jose de Gracia mine with Northern Sector La Lupita structures.

CURRENT EXPLORATION 2016 – Drilling for Bulk Silver Gold resources

In June 2016 Santana undertook a 1,961m reverse circulation (RC) drill program: 14 holes drilled into the Mojardina prospect (1,850m) (Figure ….) and one hole (111m) drilled into the Jesus Maria prospect (Figure ….). These prospects are respectively located in the Southern and the Central Sectors of the Cuitaboca Project.

Cuitaboca Project – Southern Sector – Bulk Tonnage Potential – Mojardina Loop

Multiple zones of silver rich mineralisation were identified at the Mojardina prospect in prior work: initially in surface rock-chip sampling and subsequently in diamond saw trenches (late 2015 and early 2016). The RC drilling served to confirm and enhance the interpretation of the bulk tonnage silver potential of the prospect and justifies a further drill program to test extensions (potential strike length in excess of 1km).

RC Drill Highlights Mojardina ‘Loop’

    • Ø 10m @ 64 g/t Ag from 6m (RC16CT-01)
    • Ø 14m @ 76 g/t Ag from 0m; and
    • 22m @ 34 g/t Ag and 0.77% Zn from 69m (RC16CT-02)

    Ø 67m @ 66 g/t Ag from 31m, including:

    7m @ 325 g/t Ag from 31m;

    Incl: 2m @ 1,034 g/t Ag from 33m; and

    12m @ 104 g/t Ag from 79m (RC16CT-04)

    Ø 51m @ 42 g/t Ag and 0.23% Zn from 21m, including:

    11m @ 72 g/t Ag from 21m; and

    23m @ 50 g/t Ag and 0.97% Zn from 49m (RC16CT-05)

    Ø 11m @ 50 g/t Ag from 106m, and

    18m @ 32 g/t Ag and 0.31% Zn from 139m (RC16CT-06)

    Ø 2m @ 120 g/t Ag from 113m, and

    23m @ 1.1% Zn, 0.13 g/t Au and 0.42% Pb from 173m (RC16CT-07)

    Ø 6m @ 96g/t Ag from 0m, and

    8m @ 127g/t Ag from 32m, and

    9m @ 78g/t Ag from 81m (RC16CT-08)

    Ø 7m @ 48g/t Ag from 52m, and

    5m @ 50 g/t Ag and 1.26% Zn from 111m (RC16CT-09)

    Ø 3m @ 119g/t Ag and 2.5% Zn, 0.87% Pb from 52m, and

    10m @ 0.63% Zn from 113m (RC16CT-10)

    Ø 9m @ 53g/t Ag from 2m (RC16CT-14)

Drilling suggests the geometry of the mineralisation is uncomplicated (dipping planar bodies). On the northern side of the ‘Loop’ (Figure 4) around Mojardina Junction and Las Animas (drill-holes RC16CT-08, 09 and 10 denoted on Fig … as 8, 9 and 10) continuous mineralisation is noted. On the southern side of the ‘Loop’ a significant flexure is noted centred on RC16CT-03 and 04 (denoted on Fig … as 3 and 4). This is known as forming the Evangelina High grade shoot, which remains open at depth.

Strike length in excess of 400m is noted for the northern Las Animas structure and the southern Evangelina arms of the now confirmed Mojardina Loop.

Current interpretation indicates high grade shoots are located within planar 45 to 55 degree dipping structures which are developed on slight strike and dip changes, a normal outcome for this style of mineralisation. Further drilling will target strike and dip continuity with a further 500m of known open structure mineralised for at least 10m on surface to Mojardina South.

Normally this type of system if a loop is confirmed will have one of the metal hosting arms of the loop being dominant in metal content and this seems to be the Southern Javelina- Evangelina area with thick (>10m) zone open at depth along the plane of the vein for holes RC16CT-03 and 04 as sections depict. Significant Zinc mineralisation is noted at depth for RC16CT-07 and this along with other Zinc concentrations will be modelled to determine influence on high silver grades.

Figure 4. Mojardina Drill plan showing drill hole locations (noted: 1 to 14) and assays + earlier saw trench results (MJTR005 and 009 to 011). Note significant mineralized and non-drilled SE open strike length from RC16CT-04 onward.

 

Table 1 sets out the sawn surface channel sample results (pre-drilling). 

Table 1, Sawn Channel Sample results – SOUTHERN SECTOR – MOJARDINA

Trench_ID

From

To

Element

Width

Grade g/t

MJTR-001

0

8

Ag

8

114

MJTR-002

4

5.7

Ag

1.7

107

MJTR-003

0

2.8

Ag

3

30

MJTR-004

0

6

Ag

6

5

MJTR-005

0

3

Ag

3

401

MJTR-006

0

4.4

Ag

4.4

7

MJTR-007

0

1

Ag

1

5

MJTR-008

7.6

8.6

Ag

1

80

MJTR-009

0

9.1

Ag

9.1

314

MJTR-010

0

2

Ag

2

300

MJTR-011

0

4

Ag

4

241

MJTR-012

6

8.6

Ag

2.6

87

MJTR-013

0

2

Ag

2

25

MJTR-014

0

3

Ag

3

105

MJTR-015

0

5

Ag

5

138

MJTR-016

0

3

Ag

3

196

MJTR-017

1

1.8

Ag

1.8

33

MJTR-018

0

1

Ag

1

540

MJTR-019

0

10

Ag

10

14

MJTR-020

0

37

Ag

37

51

MJTR-020

13

22

Ag

8

119

MJTR-021

5

16

Ag

11

31

MJTR-022

102

107

Ag

5

60

MJTR-023

4

16

Ag

12

60

MJTR-024

0

12

Ag

12

71

MJTR-025

0

12

Ag

12

102

SOUTHERN SECTOR – SANTA EDUVIGES

Trench_ID

From

To

Element

Width

Grade g/t

SETR-001

0

6.9

Ag

6.9

1.5

SETR-002

0

6.6

Ag

6.6

1.4

SETR-003

0

4.2

Ag

4.2

1

SETR-004

0

6.9

Ag

6.9

123

SETR-005

0

6.9

Au

6.9

0.24

 

Central Sector – Jesus Maria Breccia Bulk Tonnage potential (and Colateral Drill Location)

The Jesus Maria – Manguito stock-work (Figure 5) North-South strike length exceeds 300m and has broad zones of silver mineralisation interpreted to be over 30m in width with grading over 100g/t Ag. The prospect is seen as a potential ‘repeat’ (of the Mojardina Loop) in both a mineralised and changing host vein orientation (geometric) resulting in stockwork zones being developed. This zone will be subjected to drilling in the next program.

A new gold zone has been discovered in the form of a splay quartz breccia which returned a rock chip result of 11.8m @ 2.15 g/t Au + 10 g/t Ag. It is part of a structure with a mapped strike length of over 200m (Carajuca structure) trending north off the defined Jesus Maria trend (Figure 5).

The area was previously thought only to be silver mineralised. In the June 2016 drill program a single drill hole was targeted 50m below the Carajuca structure. The drill assays are encouraging showing 13m @ 0.44 g/t Au from 39m including 1m @ 1.01 g/t Au from 41m and 1m @ 2.04 g/t Au from 49m.

Table 2 sets out sawn channel sample results from early 2016.

Table 2, Sawn Channel Sample results – CENTRAL SECTOR – JESUS MARIA

Trench_ID

From

To

Element

Width

Grade g/t

JMTR-001

4

13

Ag

9

143

JMTR-002

0

11.8

Ag

11.8

104

JMTR-003

1

5

Ag

5

103

JMTR-004

0

15

Ag

15

9

JMTR-005

0

3

Ag

3

14

JMTR-006

0

9

Ag

9

110

JMTR-007

0

3

Ag

3

89

 

 

 

 

 

 

Figure 5. Jesus Maria – Manguito breccia and ‘splay’ adjacent to the interpreted northern area of the Jesus Maria loop (the repeat of Mojardina).


History/Exploration

Historic Work

Little modern exploration has been undertaken.

Small scale mining in the 1800’s appears to have been limited to the high-grade oxidized ore, likely because of the limit to technologies to treat sulphide ore at the time.

For several years from 1974 Penoles undertook a number of reconnaissance mapping and sampling programs. In the course of that work they identified five separate sub-parallel veins with several hundred metres of separation.

Exploration 2004 – 2008

First Silver Reserve, Inc and First Majestic Silver Corp undertook mapping, sampling and other activities at Cuitaboca. Features of the work included cutting a 26km road access to reach two of the veins in the system: Colateral-Jesus Maria and the Mojardina veins. A 100m long underground crosscut (adit) was developed from the side of the hill to access the Colateral vein, from which a 110m long exploration drift (drive) was completed along the vein. During this exploration samples of the veins were collected every 3m, the assays for which are shown in Tables 1 – 3 as reported by First Majestic Silver Corp.

Table 1. Highlights of samples from the 110 metre drift (incorporates Tables 2 and 3)

LineNumber

Width

Metres

Au

g/t

Ag

g/t

Pb

%

Zn

%

Line 1 NW

2.30

0.12

251

0.85

4.98

Line 2 NW

1.60

0.18

464

1.64

1.78

Line 3 NW

1.50

0.24

480

0.74

1.44

Line 4 NW

1.10

0.29

169

1.08

1.54

Line 5 NW

1.15

0.20

870

4.05

3.82

Line 6 NW

0.50

1.47

202

0.53

0.78

Line 7 NW

1.10

1.38

1,359

6.76

3.68

Line 8 NW

1.50

1.41

1,240

3.55

4.03

Line 9 NW

2.10

1.28

395

2.56

2.93

Line 10 NW

2.30

0.93

741

5.30

3.03

Line 11 NW

1.35

1.49

756

1.66

2.05

Line 12 NW

1.70

0.25

77

1.06

0.79

Line 13 NW

1.60

0.68

291

3.34

1.84

Line 1 SE

2.00

0.05

216

0.75

1.10

Line 2 SE

2.00

0.08

722

0.84

2.13

Line 3 SE

1.70

0.05

652

0.83

2.25

Line 4 SE

1.50

0.18

718

1.05

1.28

Line 5 SE

1.70

0.51

823

0.80

2.08

Line 6 SE

1.80

1.01

637

1.50

3.39

Line 7 SE

2.20

0.39

413

0.55

1.08

Line 8 SE

1.50

0.41

677

1.84

3.98

Line 9 SE

1.50

0.27

53

0.65

0.39

Line 10 SE

1.20

0.12

37

0.59

0.42

Line 11 SE

1.00

0.04

276

0.38

0.64

Line 12 SE

1.00

0.01

2

0.04

0.08

Line 13 SE

0.70

0.01

6

0.09

0.15

Line 14 SE

1.00

0.01

20

0.07

0.12

Line 15 SE

1.15

0.01

3

0.03

0.04

Line 16 SE

0.60

0.01

4

0.07

0.18

Line 17 SE

0.50

0.04

12

0.17

0.45

Line 18 SE

1.05

0.03

9

0.20

0.30

Line 19 SE

1.70

0.08

72

2.72

6.05

Line 20 SE

1.40

0.01

29

3.39

3.18

Average over 110 m length

1.42

0.42

425

1.65

2.15

 

Table 2. Highlights of samples from the first 40 metres on the NW side of the drift

LineNumber

Width

Metres

Au

g/t

Ag

g/t

Pb

%

Zn

%

Line 1 NW

2.30

0.12

251

0.85

4.98

Line 2 NW

1.60

0.18

464

1.64

1.78

Line 3 NW

1.50

0.24

480

0.74

1.44

Line 4 NW

1.10

0.29

169

1.08

1.54

Line 5 NW

1.15

0.20

870

4.05

3.82

Line 6 NW

0.50

1.47

202

0.53

0.78

Line 7 NW

1.10

1.38

1,359

6.76

3.68

Line 8 NW

1.50

1.41

1,240

3.55

4.03

Line 9 NW

2.10

1.28

395

2.56

2.93

Line 10 NW

2.30

0.93

741

5.30

3.03

Line 11 NW

1.35

1.49

756

1.66

2.05

Line 12 NW

1.70

0.25

77

1.06

0.79

Line 13 NW

1.60

0.68

291

3.34

1.84

Average over 40 m length

1.52

0.72

547

2.60

2.69

 

Table 3. Highlights of the first 33 metres on the SE side of the drift

LineNumber

Width

Metres

Au

g/t

Ag

g/t

Pb

%

Zn

%

Line 1 SE

2.00

0.05

216

0.75

1.10

Line 2 SE

2.00

0.08

722

0.84

2.13

Line 3 SE

1.70

0.05

652

0.83

2.25

Line 4 SE

1.50

0.18

718

1.05

1.28

Line 5 SE

1.70

0.51

823

0.80

2.08

Line 6 SE

1.80

1.01

637

1.50

3.39

Line 7 SE

2.20

0.39

413

0.55

1.08

Line 8 SE

1.50

0.41

677

1.84

3.98

Line 9 SE

1.50

0.27

53

0.65

0.39

Line 10 SE

1.20

0.12

37

0.59

0.42

Line 11 SE

1.00

0.04

276

0.38

0.64

Average over 33 m length

1.65

0.29

493

0.90

1.76

 

The information in the above tables is extracted from a news release by First Majestic Silver Corp. dated November 13, 2007. The news release was reviewed by Baltazar Solano-Rico, M.Sc., President of Behre Dolbear de Mexico, S.A. de C.V. who was the Qualified Person for the release as defined in the standards for disclosure of mineral projects within Canada (NI 43-101). Full details of the new release are available on Sedar.

The information in the above tables was prepared in accordance with the standards for disclosure of mineral projects within Canada (NI 43-101) and not in accordance with the JORC code. A competent person has not done sufficient work to classify the information reported within the news release in accordance with the JORC Code. It is uncertain that following evaluation and/or further exploration work that the reported information will be able to be reported in accordance with the JORC Code.

2013 – 2015

In 2013, prior to the project being under the control and management of Santana, Corbett and Menzies Consulting Pty Ltd (CMC) geologists were engaged to map, evaluate and prioritise drill targets for each of the known Ag-Au-Pb-Zn bearing epithermal quartz veins in the Cuitaboca area and to determine stratigraphic and/or structural controls to mineralisation as an aid to the definition of drill targets to test for blind ore shoots.

In December 2014/15 under the supervision of CMC a 5 hole diamond core drill program of 1,382m was undertaken. Three holes were bored into the Colateral structure and two holes bored into the Jesus Maria vein structure. Assay results were reported to ASX on 20 January 2015 and 9 March 2015.

Grades (reported 20 January 2015) in the Colateral vein drilling are:

0.9m @ 1.88g/t Au + 78g/t Ag + 1.26% Pb + 4.4% Zn from 187.3m (DD14CT001)

1.1m @ 0.56g/t Au + 168g/t Ag + 6.11% Pb + 5.8% Zn from 207.3m (DD14CT002)

1.7m @ 0.28g/t Au + 178g/t Ag + 2.1% Pb + 1.16% Zn from 183.3m (DD14CT003)

(incl 1m @ 0.29g/t Au + 270g/t Ag + 0.38% Pb + 1.16% Zn from 184m)

 

Grades (reported 9 March 2015) in the Jesus Maria vein drilling are:

1.73m @ 351g/t Ag + 0.21% Pb + 0.62% Zn from 293m (DD15CT004)

(incl 0.82m @ 634g/t Ag + 0.26% Pb + 0.88% Zn from 293.91m)

 

Colateral vein

The primary zone tested the Colateral vein for ore shoots below a zone that had reported elevated silver from underground samples. Drilling intersected 1 – 1.7m wide (down hole) colloform banded, chalcedonic quartz with massive galena, low temperature white sphalerite and fine-grained argentite over a strike length of 90m and down-dip extent of 150m from surface within competent andesite.  The three drill holes, along with historic workings and exploration, indicated the presence of a mineralised vein having a known strike length of 900 – 1,000m with down dip continuity of 150m from surface, open at depth and at each end (figure 4).

 


Fig 4 Cross-Section DD14CT001-003 intersecting the Colateral vein

Jesus Maria prospect

The two diamond core drill holes bored into the Jesus Maria prospect below historic artisanal scale mine workings.

DD15CT004 intersected a colloform banded galena-yellow to white sphalerite-argentite bearing quartz-carbonate vein. The intersection is approximately 160m down-dip below the historically worked Jesus Maria artisanal scale mine within competent andesite (figure 5). DD15CT005, bored a further 80m under DD15CT004, intersected minor amounts of disseminated galena and sphalerite within chalcedonic stringer quartz veins hosted in andesite at 331m down hole, which did not report significant Ag or base metal grades.

The DD15CT004 intersection of the Jesus Maria vein is 900m along strike from the reported intercepts below Colateral Mine (figure 6).  Geologic mapping indicates the vein is contiguous between these two locations and remains open at each end, which confirms the potential to explore for wider developments of vein hosted Ag-rich polymetallic mineralisation within this significant strike length.

Fig 5 Cross section through jesus Maria vein drill holes CC15CT004 and ..005

Fig 6 drill hole location plan strike extent Colateral to Jesus Maria

Geologic surface mapping and sampling programs during 2014 have delineated 9 discreet WNW-ESE to NW-SE oriented low sulphidation polymetallic epithermal Ag-Au veins which occur at regular intervals over the 25km length of the Cuitaboca mining concessions (figure 3). Veins at surface are typically 0.2 to 1.8m wide, host argentite, galena, and sphalerite, with minor chalcopyrite and report elevated Ag, Au, Pb, and Zn.

Figures 7 and 8 show the northern and southern zones respectively and Table 4 provides the surface rock chip sample locations and results (the underground samples from the Colateral  drift are reported above under the heading “Recent work 2004 – 2008”.

In the northern zone of the Cuitaboca mining concessions (figure 7) the highest grades were reported from the La Lupita – El Pinal prospects where the vein has a strike length exceeding 3km, and from the newly identified La Piedrita and Blanca Esthela prospects.

The location of these northern zone prospects at a high elevation (1000-1500m) in the upper part of the Sierra Madre Occidental volcanics suggests good continuous depth potential to host polymetallic low sulphidation epithermal Au-Ag mineralisation.

The central zone sample results are consistent with the results of historic exploration and with drilling of the Colateral vein Jesus Maria vein and continues to build the prospectivity of the region.

In the southern zone the La Mojardina/Santa Eduiweges prospect hosts two polymetallic epithermal Ag-Au veins, up to 1m wide having an identified 400+m strike, that reported an average grade of 0.09g/t Au, 678g/t Ag, 0.56% Pb, 3.8% Zn over  0.9m, from 6 samples.

Stream Sediment Sample Collection

The collection of stream sediment samples, in 1km spaced catchment areas, identified a 3.4sq km drainage in the northern zone of the mining concessions that exhibits elevated Zn, Pb, Cu, Ag, ± Au and is not associated with any known polymetallic epithermal Ag-Au mineralisation.

A zone of anomalous Au and Cu in drainage samples collected between the Jesus Maria and La Mojardina prospects may also represent geochemical leakage from an unmapped polymetallic vein.

Orientation Soil Sample Survey

A soil sample orientation survey was completed over a portion of the Colateral prospect vein to determine the effectiveness of the technique in a known mineralised area. This survey reported elevated Au-Ag-As-Pb and Zn in soil samples above the Colateral vein and indicates the technique will assist in the definition and prioritisation of drill targets for other prospects in the Cuitaboca mining concessions, where there is poor outcrop of the veins.

Fig 7 Northern Zone rock chips

Fig 8 Southern Zone rock chips