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Lobos

Download File: Technical report for the Lobos Property (Adobe PDF, 4.2 MB)

Mining has been part of Mexico since ancient times. Significant production was developed during Colonial times with many of the famous camps such as San Luis Potosi, Zacatecas, Pachuca and Concepcion de Oro, among others being established at that time. Historically, silver was the most important mineral, being extracted from veins, breccias, vein-stockwork systems as well as chimneys and mantos. More recently, base and precious metal mines developed in carbonate replacement deposits (CRD’s), particularly in Chihuahua State, have risen to prominence with names like Santa Eulalia and Naica. A variation on the carbonate replacement deposits is the Peñasquito deposit where mineralization is related to the formation of intrusive related diatreme-like breccia pipes.

The geological setting of the Lobos property is similar to many of the more significant mining districts within the Sierra Oriental of Mexico. The oldest rocks, Mesozoic limestone, are exposed in erosional windows created by uplifted antiforms, and may be underlain by intrusive rocks, as indicated by the 38 regional magnetic data. The remainder of the Mesozoic stratigraphic sequence, including shales, sandstones and conglomerates are generally flat lying and exposed by topographic variations. The Mesozoic stratigraphy is locally overlain by felsic to mafic Tertiary volcanic rocks, or cut by related magmatic feeders. All of the lithological components required for epithermal veins and breccias, and carbonate replacement, or related diatreme breccia deposits, are present on the property.

The 11,670Ha Lobos property hosts numerous gold, silver, antimony, mercury and base metal showings along with small mine workings. These showings are very similar to the same sort of signature found at Peñasquito. Some of the features similar to Peñasquito are a very large structurally controlled hydrothermal breccias field, epithermal veins, manto systems, skarn and CRD mineralization. Hydrothermal alteration which appears to surround the breccias system is propylitic and may have a weak phyllic alteration overprint. All of the above are also associated with the Peñasquito deposit.

The Lobos property is a new entity, staked as a result of research using government regional magnetic data and inversion, satellite multi-spectral imagery, digital geology and geochemistry, and compilation of geological reports. The new claim covers other claim areas that have been located on historical showings with minor to moderate production, although no mine or milling infrastructure is located in the property area. As most of the historical mine workings on the property are artisanal there is very little documentation and no production records. No evidence of drilling was found on any of the mineral showings on the property.

Gold mining in the region dates back 450 years to Spanish Colonial times when many of the major gold-silver (+/- base metals) mines were initiated, such as Fresnillo, Conception de Oro and many others. Exploration in the better known mineralized districts has been carried out periodically to semi-continuously over the last hundred years. Areas between the mining districts have been historically prospected as evidenced by small hand workings on almost every showing but modern exploration has only recently been undertaken outside of the historical mining districts. Major mining companies, among others, began more regionally focused exploration programs in the late 1980’s and early 1990’s. The discovery of the Peñasquito deposit (160 km to the east) is the best example of exploration success the area. Kennecott Exploration began examining the Peñasquito area in 1992 and carried out extensive exploration programs between 1994 and 1997. In 1998 the Peñasquito project was sold to Western Copper who carried out exploration work and optioned the property to Minera Hochschild S.A. in 2000 who completed 4,600m of drilling before terminating the option. Western Copper continued exploring, completing 6,900m of drilling in 2002, which began to reveal the significant size of the mineralized breccias at Peñasquito. Exploration has continued within the Peñasquito project with current resources (June, 2007) of 1,596 million tones grading 0.35 g/t Au, 24.9 g/t Ag, 0.28% Pb and 0.65% Zn in the measured and indicated category and 1,220 million tones grading 0.23 g/t Au, 13.0 g/t Ag, 0.07%Pb and 0.50% Zn in the inferred category. The Peñasquito project is currently under development by GoldCorp.