Guadalupe y Calvo
The Guadalupe y Calvo Gold-Silver Project
Property
The Guadalupe y Calvo Gold-Silver Project lies immediately to the southwest of the town of Guadalupe y Calvo, in the State of Chihuahua, Mexico. It is located approximately 300-kilometres southwest of the city of Chihuahua, the capital city of the State of Chihuahua. Mexgold holds a 100% interest in the Project, consisting of five concessions totalling approximately 440-hectares.
History
Guadalupe is a historic mining district. Bonanza grade gold and silver was discovered on the property in 1835, and the town of Guadalupe y Calvo was founded shortly thereafter. Historic mining in the area produced approximately 2-million ounces of gold and 28-million ounces of silver at estimated production grades of 37 grams per tonne gold and 870 grams per tonne silver. In 1844, the Mexican government erected a mint onsite in response to the significant gold and silver production from operations in the district. However, the district was only partially and selectively mined. Historic mine operators focused only on the higher-grade zones in selected upper portions of primary high-grade structures and stopped at water table depths of 200- to 250-metres.
Resources
The Guadalupe y Calvo Project contains inferred resources of 1.08-million ounces of gold and 45.6-million ounces of silver (Pincock, Allen and Holt, Nov. 2002). This estimate is based on exploration work completed on the Rosario and Nankin structures and does not address other mineralized structures on the property and potential for significant strike extensions that are know to be present within the project boundaries. Successful exploration results in any of these areas could significantly enhance the overall project potential.
Exploration
Mexgold has launched a 30,000-metre exploration drilling program at the Guadalupe Gold-Silver Project, focused on upgrading and expanding the property’s resources.
To date, a total of 37 holes have been drilled, comprising approximately 10,000-metres of drilling. Gold and silver grades from all drill holes to date with intercepts above a 3.0 gram per tonne cut off average 4.22 grams per tonne gold and 437 grams per tonne silver, over an average interval of 2.1-metres. Results from drill holes with intercepts above a 0.5 gram per tonne cut off average 0.86 grams per tonne gold and 94 grams per tonne silver, over an average interval of 11.6-metres.
Gold equivalent values are based on 65 grams of silver = 1 gram of gold, calculated on a gold price of US $300 and a silver price of US $4.61. The full Technical Report on the Guadalupe y Calvo Gold-Silver Project, dated November 25, 2002, prepared by Pincock, Allen & Holt is available at www.sedar.com .
