CERRO CALICHE MAPS (Click to enlarge)
CERRO CALICHE GOLD EXPLORATION PROJECT
SONORA-CUCURPE GOLD DISTRICT, SONORA STATE, MEXICO
RESULTS OF PHASE ONE DRILL PROGRAM AT CERRO CALICHE
In January 2018, Sonoro commenced the acquisition of mineral concessions in the Sonora-Cucurpe Mega-district of Sonora State, Mexico, that comprise the Cerro Caliche gold exploration project. A total of five agreements to acquire 100% interests in the concessions were signed, resulting in the acquisition of approximately 1.400 hectares containing previously defined mineral targets.
Following the assaying of over 2,000 rock chip samples collected by Sonoro’s geological field crews and the analysis of over 4,000 surface samples conducted by prior operators, Sonoro carried out the first phase of a two-phase drilling program for 10,000 meters of reverse-circulation drilling, between late September and December 2018. Click for assay results here: https://bit.ly/2RkMoOr
A total of 45 reverse circulation holes totaling 4,604 meters were drilled during the program confirming a cluster of eight northwest trending gold-dominant structures surrounded by parallel sheeted veinlets and stockwork veinlets. Highlights from the final 14 holes include 12.2 meters of 11.3 grams per tonne AuEq, 4.6 meters of 4.69 grams per tonne AuEq and 12.2 meters of 0.95 grams per tonne AuEq.
The combined results from the phase one drilling program confirm shallow, low grade, bulk tonnage gold mineralized zones in supergene oxidized sedimentary and igneous rock units. Subject to metallurgical confirmation, the gold mineralized zones appear amenable to heap leach extraction of precious metals with deep oxidation. The average gold grade of intervals reported is observed to be similar to other gold heap leaching mining operations in the region.
Sonoro has also received and analyzed the databases from Corex Gold Corp. and other operators that carried out historical drilling programs at Cerro Caliche since 2007. These operators completed an aggregate of 116 drill holes totaling 12,442 meters of drilling, in addition to over 4,000 surface samples. The combination of historic and current exploration programs totals over 17,000 meters of drilling in 161 drill holes and over 6,000 surface samples.
Sonoro’s phase one drill program has successfully corroborated the sampling and drill results generated by the prior operators, thereby considerably enhancing management’s confidence in the significant potential of Cerro Caliche. Sonoro will continue to utilize the newly expanded database to increase the zones of gold mineralization within the current target area and to drill additional highly prospective mineralized zones identified through the ongoing exploration program.”
The mineralized zones are named after historic mine workings situated within each zone, from east to west, as follows; Las Abejas, Chinos NW, Japoneses, Los Cuervos, El Quince, Cabeza Blanca, Guadalupe, and El Colorado.
Results from 19 drill holes in the Cabeza Blanca/El Colorado/Guadalupe zones outline a linear central vein structure with sheeted to stockwork associated mineralization. Results also confirm lateral continuity of over 500 meters for both the Cabeza Blanca zone and its parallel companion, the Guadalupe zone. Furthermore, a high-grade interval of 6.09 meters of 21.5 g Au per tonne was cut near an intersection between the Guadalupe and El Colorado zones.
The 19 holes completed in the Japoneses and Cuervos zones indicate one continuous structure extending approximately 1.2 kilometers. A multiple-vein mineralized zone, Japoneses-Cuervos is the largest area of mineralization on the Cerro Caliche property to be investigated to date. Detailed cross sections have been constructed to aid in structural interpretation. Host rocks cut by the gold mineralization include quartzite of Jurassic age and early Tertiary biotite granodiorite porphyry and minor rhyolite.
The Abejas zone is the most northeasterly gold mineralized structure at Cerro Caliche. A total of 5 holes have been drilled at Abejas, confirming host rocks like those identified in the Japoneses-Cuervos zone. Short, air track drill holes are planned for the nearby Chinos NW zone to confirm suspected shallow gold mineralization. Four historic drill holes in the zone’s southern extension identified stockwork gold mineralization.
Distances between each mineralized zone range from 120 to 400 meters with widths of each mineralized zone reaching up to 60 meters and lengths of approximately 800 meters.
Geological mapping and sampling are continuing where newly recognized gold bearing targets are being defined. Several additional mineralized structures adjacent to the current exploration zones will be investigated as part of phase two of the drilling program
Quality Assurance/Quality Control (“QA/QC”) Measures and Analytical Procedures
Drill samples are collected with an airstream cyclone and passed into a splitter that divides each sample into quarters. The quartered samples are then bagged and sealed with identification. The sample group has blanks, standards and duplicates inserted into the sample stream. ALS-Chemex collects the samples and transports them directly to the preparation laboratory in Hermosillo, Sonora.
At the laboratory, part of each sample is reduced through crushing, splitting and pulverization from which 500 grams is sent to the ALS-Chemex assay laboratory in Vancouver. 30 grams undergoes fire assay for gold whereby the resulting concentrated button of material is dissolved, and the gold is determined by atomic absorption. Another quantity of the sample is dissolved in four acids for an ICP multi-element analysis.
Cerro Caliche is located 45 kilometers southeast of Magdalena de Kino in the Cucurpe-Sonora Mega-district of Sonora, Mexico. Multiple historic underground mines have operated on the concession including Cabeza Blanca, Los Cuervos, Japoneses, Las Abejas, Boluditos, El Colorado and Espanola. Mineralization types of the Cucurpe-Sonora Mega-district include variants of epithermal low sulfidation, epithermal mineralized dikes and associated volcanic rocks, and sub-adjacent mesothermal Carlin-type gold mineralization.
Local altered felsic dikes cut the mineralized meta-sedimentary rock units and may be associated with mineralization in both the dikes and meta-sedimentary rocks. The Cucurpe-Sonora Mega-district has historically been regarded as vein dominated, but recently, open pit mining operations have been developed to process disseminated and stockwork style gold mineralization. Cerro Caliche is a sub-district of the Cucurpe-Sonora Mega-district with many gambusino workings, exploration pits and drill holes on the concession.
Host rocks include Jurassic-Cretaceous metasedimentary rock types including argillite, shale, quartzite, limestone, quartz pebble conglomerate and andesite. Intrusive rock consisting of medium coarse-grained granodiorite is present in the western parts of the project near the historic Cabeza Blanca mine. It is apparent that veining cuts the intrusive stock. The granodiorite also shows evidence of weak metamorphism, with chloritic alteration and irregular lineation textures. Rhyolite occurs in irregular bodies distributed in higher elevations in the northerly part of the concession, including the Rincon area, where it occurs as flows, sills, dikes and rhyolite domes. Part of the rhyolite is mineralized and appears to be related to epithermal gold mineralization throughout the property.
OVERVIEW OF CERRO CALICHE
Sonoro’s Mexican subsidiary, Minera Mar De Plata, SA de C.V. has entered into option agreements with five vendors, to acquire 100% interests in several concessions totaling approximately 1,400 hectares, collectively named the Cerro Caliche Group of Concessions (“Cerro Caliche”) located in the municipality of Cucurpe, Sonora, Mexico.
Cerro Caliche is a very compelling under-explored gold project area located in the Sonora-Cucurpe mega-district located between the prolific north-south oriented Sierra Madre Gold Belt to the east and the northwest oriented Sonora-Mojave Megashear complex to the west,
This important gold mining district includes Premier Gold Mines’ Mercedes gold mine, Goldgroup Mining’s Cerro Prieto gold mine, Agnico Eagle’s Santa Gertrudis gold project, and other nearby gold mineralized prospect areas.
THE OPTION AGREEMENTS
The Cerro Caliche Option Agreement provides for Sonoro to acquire a 100% interest in 907.6 hectares for total consideration to the Vendor of US$2,977,000, payable in escalating cash installments over 72 months. Following exercise of the Option, the Vendor will hold a 2% net smelter returns royalty (“NSR”) from the proceeds of the sale of minerals from Cerro Caliche. Sonoro has been granted an option to purchase the NSR at any time for US$1,000,000 for each one percent of the 2 percent NSR.
The Rosario Option Agreement provides for Sonoro to acquire a 100% interest in 403.5 hectares for total consideration to the Vendor of US$1,600,000, payable in escalating cash installments over 72 months. Following exercise of the Option, the Vendor will hold a 2% net smelter returns royalty (“NSR”) from the proceeds of the sale of minerals from Rosario. Sonoro has been granted an option to purchase the NSR at any time for US$1,000,000 for each one percent of the 2 percent NSR.
The Tres Amigos Option Agreement provides for Sonoro to acquire a 100% interest in 20 hectares for total consideration to the Vendor of US$130,000, payable in 9 equal cash installments of US$14,444.44 over 48 months.
The El Colorado Option Agreement has enabled Sonoro to acquire a 100% interest in 9 hectares for total consideration to the Vendor of US$100,000, which has been paid in full.
The Cabeza Blanca Option Agreement provides for Sonoro to acquire a 100% interest in 10 hectares for total consideration to the Vendor of US$175,000 and 250,000 Sonoro shares, with the cash component to be paid in 5 installments over 2 years.
ABOUT THE CERRO CALICHE CONCESSIONS
The Cerro Caliche concessions are located about 45 km southeast of Magdelena de Kino in north-central Sonora State with good road access. Older local historic mines including Los Cuervos, Japoneses, Las Abejas, Boluditos, Cabeza Blanca, El Colorado which operated during periods up to about 130 years ago are included within the concessions.
Cerro Caliche is situated in the heart of the Sonora-Cucurpe mega-district. Nearby producing mines include Premier Gold Mines’ Mercedes gold mine, located 10 km to the east of Cerro Caliche; Goldgroup Mining’s Cerro Prieto gold mine located contiguous to the western boundary of Cerro Caliche; Agnico Eagle’s recently purchased Santa Gertrudis gold mine, located 20 km to the north of Cerro Caliche; and other nearby gold mineralized prospect areas.
Cerro Caliche was previously the subject of drill programs by Cambior Gold and Corex Gold Corp. Total drilling by those two companies in the last 20 years of 10,118 meters in 101 drill holes reportedly outlined large areas of mineralized material that may in future programs assist in defining a resource with significant gold mineralization. A historic non-published report completed by Corex (Flores, 2008) includes a non NI 43-101 estimated resource.
Cerro Caliche is a sub-district of the Sonora-Cucurpe gold mine district with many gambusino workings and exploration pits in the concession area as well as drill holes. Immediate plans are to utilize new and prior data available from surface sampling and east-west soil sampling lines focusing in the areas with prospect pits to identify targets for additional work including necessary permitting and completing a reverse circulation drilling program after mid-year. The form of mineralization includes veins, parallel sheeted veinlets to stockwork veinlet zones, and disseminated-fracture controlled gold without quartz veinlets are present in the concession area containing gold.
ABOUT THE SONORA-CUCURPE MINING DISTRICT
Mineralization types of the Sonora-Cucurpe mega-district include variants of epithermal low sulfidation, epithermal mineralized dikes and associated volcanic rocks, and sub-adjacent mesothermal Carlin type gold mineralization. These deposits in the district appear to be genetically linked with a similar mineralization age ranging from 40 to 30 Ma. Altered felsic dikes cut the mineralized meta-sedimentary rock units are associated with mineralization in both rock units.
The Sonora-Cucurpe mega-district has historically been regarded as a higher-grade vein-only dominated district including the Cerro Prieto and the Mercedes mines. Activities at Cerro Prieto and Santa Gertrudis mine areas have developed open pit resources in more recent years with more disseminated to stockwork style gold mineralization. Sonoro’s San Marcial project is located about 30 kilometers further west of Cerro Caliche with gold mineralization hosted in Jurassic shale and quartzite meta-sedimentary units.
Stephen Kenwood, P. Geo. is a qualified person within the context of National Instrument 43-101 and has read and takes responsibility for this information. Readers are cautioned that the presence of mineralization on properties adjacent to or in proximity to Cerro Caliche is not necessarily indicative of alteration and mineralization on Cerro Caliche.
CERRO CALICHE EXPLORATION - JUNE 2018
PREPARING TO DRILL CERRO CALICHE - SEPTEMBER 2018
DRILLING AT CERRO CALICHE - OCTOBER - DECEMBER 2018