Nine contiguous exploitation concessions totaling 2014
hectares cover 10 kilometers of the south-flowing Santo Domingo River and adjacent flank
of Cerro Caliche to the west. The concessions were originally granted to the owner in
1988. Adjacent concessions are held by brothers of the owner. The property is located 160
km southeast of Nogales. The Saracachi H12B72 topographic map includes the project.
Geology Summary:
Placer gold occurs concentrated in certain paleochannel gravel
deposits and in heavy mineral traps along the present Santo Domingo River drainage.
Paleochannel deposits are richer in gold, but discontinuous due to erosion. These deposits
were discovered in 1757 and worked on a small scale before the late 1890's when Greene
Consolidated Gold Company, headed by Col. Greene of Cananea fame, recovered gold until
operations were terminated by the Mexican Revolution in 1910. Small scale gold recovery
operations continue on the property to the present. The lode source of gold is believed to
be the various lode gold mines on veins and disseminations of Cerro Caliche. No
information is available concerning lode gold deposits on the property.
Geochemistry Summary:
No geochemical analysis of the placer gold is available
Geophysics Summary:
No detailed geophysical studies of the placer gold environment
are available
Drilling Summary:
The results of an eight-hole test drilling program have been
requested, and an update will be provided when these results are received.
Reserves Summary
In 1996, an independent study of prospective operations on one
part of the property quoted a placer gold resource of 77 million cubic meters grading 0.02
oz/cubic meter or 1.5 million ounces. Proposed pit operation of 3,000 cubic meters/day
would utilize equipment available on site. At another paleochannel location in the
Victoria concession, the lowermost 6.4 m of a 12.5-m-deep drill hole returned an average 4
grams gold/cubic meter (reported). The 50-m-wide paleochannel is estimated to extend about
400 m.
Other Summary
Project concentrating equipment on site includes 200 cubic
meters/hour grizzly, trommel, and vibrating classifier, and sluice. An 18-m-deep well,
pump, and recycling ponds provide water. Significant mobile equipment includes three
scrapers, a bulldozer, and front-end loader. Diesel gen sets of 500 kv and 300 kv provide
electrical power. The equipment was used during four months of operations in mid-1998.
Sales of gold concentrates totaled about $792,000 from treatment of about 150,000 cubic
meters. The operation was shut down due to a decline in gold price and
undercapitalization. This report was prepared by Vernon DeRuyter, Exploration Geologist
(Tel 520-419-2645), by request of the property owner and solely from data supplied by him.
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