LOS TOCAYOS is a mineral-bearing property
consisting of all mineral rights to mine and process the ores therein, according to the
Mineral Code of Mexico. It is a legally surveyed area of 40 hectares, of 100 acres square,
for a total of 400,000-square meters. It is located at 24ø38'45" Latitude, and
approximately 105ø56'30" West Longitude, in the Sierra Madre Occidental Range in the
State of Durango, near the Municipality of Otaez, Mexico. Elevation at the site is
estimated to be about 10,000 feet above sea level. We have established an artificial
bench-mark located directly in front of the tunnel entrance. All recorded elevations in
the sketch are shown to be either minus or plus zero elevation, as the above-mentioned
Bench-Mark will be our starting point with the artificial elevation of zero.
The workings currently consist of a tunnel, horizontally excavated by
hand to a depth of about seven feet. It's location is approximately 35-feet from the
stream-side and 15-feet above the high-water marks which show on the rocky banks of the
stream. From the tunnel adit (entrance) to the stream-side perpendicular bank, there is a
distance of 29-feet, which is, in effect, a sort of patio, at present, about 8-feet in
width. This width can easily be widened, to permit mining machinery such as compressors,
drills and other needs including eventual mine cars to be either installed or located
where needed. The tunnel has been started horizontally at N. 87ø E., or about at right
angles to the stream. The adit is approximately 8-feet in width by about l0-feet high. The
tunnel itself is about 7-feet wide by 8-feet high, and no timbering has been attempted as
yet, due to the shallow depth.
Approximately 20-feet up-river, an existing tunnel, which was excavated
during the Spanish Conquest era, is located. This old tunnel was penetrated by our party
to a depth of about 30-feet, at which point it was considered too dangerous to go further.
At this level, a water-filled shaft was discovered, and it was decided that there may have
been others. The remains of some of the old timbers were still in evidence, these having
rotted away until they no longer supported the roof and walls. Some cavinq was noted also.
The inspection of this older tunnel indicated only minor mineralization. Lights were used
to try and estimate the horizontal depth of the old tunnel and it is estimated that it may
have reached a depth of about 90 to 100 feet, where it appeared to branch off at right
angles.
A well-worn trail leads from the new tunnel adit, up the steep slope,
to a mesa at approximately 200-feet above the artificial bench mark in front of the adit.
The mesa gently slopes upward away from the edge of the gorge for an estimated distance of
1/2-mile. It's width is variable, but is estimated at an average of 1/4-mile. It is
suggested here (and recommendations have been made while at the site) that this mesa be
utilized as the mine-base camp area. Clearing, grubbing and leveling can be carried out by
hand, using local labor equipped with picks and shovels. The mesa is sufficiently large to
permit helicopter landings as well as construct the needed mine buildings.
The entire regional topography is of the same type as encountered at
the site - extremely rugged, mountainous terrain with precipitous slopes, deep ravines and
weathered peaks which reach to exceedingly high elevations, some of which reach up to at
least 16,000 feet above sea-level. Entrance to the site at present is accomplished by
difficult means from a small mountainside airport located at the Mina de Basis about six
to eight miles from the site, at which place, horses or donkeys must be used to ride over
the hazardous mountain trails which lead through the mountains. The slow, difficult
journey which took about eight hours to complete, gave our party an opportunity to study
the terrain closely, and from all indications, the construction of a road through this
region would be very difficult and costly.
Due to these observations and opinions regarding the construction of
roads, we highly recommend that other means of transportation be planned. Again, and from
observations, we recommend that the only safe, sure means of transportation would be via
helicopter. With this method of transportation, any and all needs could be swiftly and
safely carried to the site, including all machinery, equipment, supplies, fuel, food, and
other needs, as well as personnel. As the mine develops, the same means could be used to
carry the mine products out. The city of Durango., located a short distance to the south
of the site, could be used as the main source of supplies for the mine. Durango, a town
having a population of about 150,000, has a modern airport and facilities for maintenance
and repairs for the helicopters used, therefore would be the logical base from which to
operate this method.
Geology Summary:
Geochemistry Summary:
Geophysics Summary:
Drilling Summary:
Reserves Summary
ESTIMATED VALUATION OF MINERALIZATION
It would be well to mention here, that a pilot-plant test was ordered
and completed with the use of a small production "Pan-o-matic Crush-n-Mill",
manufactured by the Pan-O-Matic Corp. of Portland, Oregon, using a 40-mesh screen. During
the test, it was found that by the use of a 20-mesh screen instead, and by further
adjustments to the equipment along with prolonged runs, the loss in Ag content through the
tailings was negligible. Also, these tests were performed with a single table while, in
regular production, if this type of equipment is used, the units will utilize at least two
if not more of the concentration tables with each milling unit, the secondary and/or
tertiary tables handling the mids from the primary separation operation. By using this
design, which has currently been pronounced efficient, there should be no problems
involved in transporting all plant equipment to the mine site via helicopter, as both the
bulk and weights involved are negligible, in comparison to the production possible.
Results from this test run are as follows: Sample weight: 49 pounds
Concentrate: 10.5 pounds
Which indicates a concentration of about 4.6:1. This can be increased to
more than 5:1 with adjustments.
Assay Results of the test:
Sample #1: Concentrate from the Gross Sample: Ag content: 443.5 troy
oz./ton
Sample #2: Mids from the Gross Sample: Ag content: 30.0 troy ounces/ton.
Sample #3: Tails from the Gross Sample: Ag content: 15.8 troy ounces/ton.
Total Ag content from the Gross Sample: Ag content: 489.3 troy ounces/ton.
No attempt was made during this test run, to recover the gold or zinc
content, as this would have required additional equipment placed into the production line.
These tests were conducted by the Pan-O-Matic Corp. under the direction of Mr. David
Zimmerman, President of Gar-Chem Corp., Garland, Texas, who also ran other assays of
record. The balance of the assays made from samples taken while at the subject site, are
as follows:
FROM GAR-CHEM LABORATORIES
Assay No. 1: 126 oz./ton Ag
Assay No. 2: 234 " " "
Assay No. 3: 204 " " "
Assay No. 4: 248 " " "
Assay No. 5: 228 " " "
FROM NUCLEAR ENVIRONMENTAL ENG. INC.
Assay No. 6: 128 " " " 6.4 oz./ton Au 600 lbs./ton Zinc 200
lbs./ton Lead
The above represents seven assays made by three firms, the total silver content of
which is 1,308 ounces, troy. This total, when divided by seven, gives a mean average of
186.85714, or this average rounded, to 186.86 oz./ton. Inasmuch as the above samples were
taken at random throughout the mineralized zones, they represent a fairly accurate picture
of the variables which could be expected in the subject. Total known plus indicated Ag
mineralization could then be estimated to be on the order of 4,735,000 Troy Oz.
Other Summary
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