Location:
The Urique Project is located in western Chihuahua State, 240 km southwest of the city of Chihuahua, within the southern Sierra Madre Mineralized belt. The project is located immediately north of El Sauzal (Goldcorp.) and immediately south of Monterde (Kimber Resources). Proximal projects within the belt include: Batopilas (MAG Silver), Mulatos (Alamos Gold), San Miguel (Paramount Gold), Morelos (Garibaldi Resource Corp.).
Deposit Model:
High grade gold and silver hosted in low sulphidation epithermal veins with spatially related high sulphidation gold system potential and high silver production bulk tonnage.
Ownership:
100% Yale Resources Ltd.
Size:
The Urique Project is made up of eleven mineral concessions covering 28,881 hectares (28.89km² or 71,367 acres).
Status:
Currently available for option.
Geology:
The geologic setting for the Urique property is a Cretaceous age volcano-sedimentary assemblage within the Sierra Madre Occidental Geological Province. The stratigraphic sequence exposed at Urique comprises andesitic to ryolitic flows and tuffs of both the Lower Volcanic Complex and the Upper Volcanic Supergroup. Mineralization typically occurs within the Lower Volcanic Complex. Alteration is comprised mainly of silica with locally strongly pyrite and clay-sericite.
The structurally controlled vein and breccia mineralization that occurs throughout the Urique Project is similar to other low sulphidation epithermal veins in the Sierra Madre mineralized belt such as Tayoltita (Silver Wheaton) Ocampo, (Gammon Lake), and Dolores, (Minefinders). In addition, the geological setting and local alteration at Cuiteco (Urique North) and Los Alisos (Urique South) demonstrate a potential for high sulphidation epithermal gold mineralization such as that found at El Sauzal, Goldcorp's operating mine located approximately 10 kilometres to the south of southern Urique Project boundary.
Results:
El Rosario
A new gold zone was found within a previously unknown extension to the El Rosario tunnel during a program that included reconditioning, mapping and sampling program.
Highlights from the underground sampling within the Rosario tunnel include:
- 9.74 g/t gold and 356.7 g/t silver over 1.68 m,
- 2.16 g/t gold and 92.5 g/t silver over 2.93 m,
- 3.60 g/t gold and 108.2 g/t silver over 1.87 m,
- 5.65 g/t gold and 95.9 g/t silver over 0.45 m,
- 3.69 g/t gold and 112.7 g/t silver over 1.10 m, and
- 3.53 g/t gold and 243.1 g/t silver over 0.40 m.
- 1,640 g/t silver over 1.05 m,
- 441 g/t silver over 2.35 m,
- 8.8 g/t gold over 0.85 m, and
- 257 g/t silver and 0.78 g/t gold over five metres (within the host rocks).
Selected assay results from veins in the Rosario area, Urique South:
| Vein/level/sample |
Width(m) |
Au (g/t) |
Ag (g/t) |
Cu (%) |
Pb (%) |
Zn (%) |
| Vein 1 |
|
|
|
|
|
|
| Rosario level |
|
|
|
|
|
|
| 9050 |
0.65 |
0.28 |
61.8 |
0.4 |
0.1 |
0.2 |
| 9053 |
NA |
0.36 |
269.0 |
0.8 |
0.2 |
0.1 |
| Vein 2 |
|
|
|
|
|
|
| Tezcalama level |
|
|
|
|
|
|
| 6842 |
0.17 |
2.87 |
1155.0 |
1.1 |
2.7 |
0.2 |
| El Salto mine |
|
|
|
|
|
|
| 6858 |
0.22 |
4.93 |
804.0 |
0.2 |
0.4 |
0.1 |
| Vein 3 |
|
|
|
|
|
|
| Surface workings |
|
|
|
|
|
|
| 7483-84 |
0.80 |
0.28 |
405.3 |
0.2 |
0.9 |
0.9 |
| including 7483 |
0.10 |
2.14 |
3220.0 |
1.2 |
7.4 |
6.9 |
| 9010-14 |
4.37 |
0.25 |
174.7 |
0.1 |
1.9 |
0.4 |
| including 9012-13 |
1.27 |
0.32 |
290.0 |
0.1 |
0.3 |
0.1 |
| including 9013 |
0.27 |
1.30 |
1320.0 |
0.6 |
1.1 |
0.2 |
| 9014 |
0.60 |
1.46 |
457.0 |
0.7 |
0.9 |
0.4 |
| Rosario level |
|
|
|
|
|
|
| 9129 |
0.95 |
0.79 |
54.8 |
- |
0.2 |
0.1 |
| 9135 |
1.60 |
0.13 |
55.6 |
0.2 |
0.2 |
0.3 |
| Vein 4 |
|
|
|
|
|
|
| Surface |
|
|
|
|
|
|
| 9028 |
0.25 |
3.59 |
842.0 |
0.2 |
3.8 |
4.9 |
| 9030 |
0.80 |
0.41 |
48.5 |
- |
0.2 |
0.1 |
| Surface workings |
|
|
|
|
|
|
| 9044 |
1.15 |
0.27 |
82.9 |
- |
2.2 |
0.3 |
| 9045-47 |
2.65 |
0.12 |
157.0 |
0.1 |
0.4 |
0.2 |
| Tezcalama mine |
|
|
|
|
|
|
| 6838 |
0.10 |
0.35 |
1550.0 |
0.5 |
0.4 |
0.2 |
| 6840 |
0.10 |
2.24 |
524.0 |
0.2 |
1.3 |
0.2 |
| Rosario level |
|
|
|
|
|
|
| 9116 |
2.20 |
0.09 |
88.1 |
0.1 |
0.1 |
0.2 |
| 9121 |
0.36 |
0.36 |
98.0 |
0.1 |
0.5 |
1.2 |
| Vein 5 |
|
|
|
|
|
|
| Surface workings |
|
|
|
|
|
|
| 9031 |
0.80 |
0.83 |
581.0 |
0.2 |
5.3 |
0.5 |
| 9039-43 |
2.75 |
0.78 |
149.7 |
- |
0.6 |
0.1 |
| including 9041-43 |
1.55 |
1.22 |
251.3 |
- |
0.9 |
0.1 |
| including 9042 |
0.25 |
5.77 |
1450.0 |
0.2 |
4.2 |
0.2 |
| 7485-86 |
1.05 |
0.52 |
1640.8 |
0.3 |
1.1 |
0.3 |
| including 7485 |
0.20 |
1.73 |
8290.0 |
1.6 |
5.0 |
0.6 |
| 7487-89 |
2.35 |
0.52 |
440.9 |
0.1 |
1.4 |
0.2 |
| including 7487 |
0.20 |
2.78 |
3640.0 |
1.0 |
11.7 |
0.3 |
| 7490 |
0.12 |
8.88 |
1030.0 |
0.3 |
8.6 |
1.8 |
| Rosario Level |
|
|
|
|
|
|
| 9103 |
1.55 |
0.27 |
37.1 |
- |
0.1 |
0.0 |
| 9106 wall rock |
5.00 |
0.78 |
257.0 |
0.1 |
0.8 |
0.1 |
| 9108 |
1.15 |
0.13 |
38.7 |
- |
0.1 |
0.2 |
| 9113 |
1.20 |
0.71 |
109.0 |
- |
0.1 |
0.1 |
San Pedro
Initial sampling of old workings returned the following:
Sample
number |
Sample
description |
Width
(m) |
Au
(g/t) |
Ag
(g/t) |
| 108981 |
Dump |
grab |
27.2 |
482.0 |
| 108990 |
Vein |
1.1 |
6.60 |
61.3 |
| 108991 |
Vein |
1.1 |
35.3 |
401.0 |
| 108992 |
Vein |
0.2 |
28.4 |
193.0 |
The Deal:
Optioned to Mammoth Capital - Under the terms of the Option Agreement, in order to earn a 70% interest in the property Mammoth will be required to pay Yale $50,000 ($25,000 received), issue to Yale 1,800,000 shares in Mammoth, and incur a total of $3,000,000 in exploration expenditures on the Property over a four year period.
Mammoth must issue 200,000 common shares upon receipt of Exchange approval to the proposed qualifying transaction and must issue a further 100,000 shares within 6 months of such approval. Subsequent share issuances of 300,000 at the 12 month anniversary and 400,000 on each subsequent anniversary will also be due in order to keep the Option Agreement in good standing. The first year's requirement will be $300,000 in exploration expenditures followed by a further $500,000 in the following year, $800,000 in the third year and $1,400,000 in the final year of the Option Agreement.
In order to earn the remaining 30% interest in the Property, Mammoth must issue an additional 500,000 common shares to Yale and must have completed a resource estimate on the Property delineating at least 300,000 equivalent ounces of gold in the measured and indicated categories within an additional three years. Upon completion of the resource estimation Mammoth would then be required to issue an additional share for each equivalent ounce of gold within the measured and indicated categories, subject to a minimum of 300,000 shares and a maximum of 2,000,000 shares.
