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Properties

– Mexico Properties

– La Esperanza, Zacatecas State, Mexico

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La Esperanza, Zacatecas State, Mexico

Location, access and infrastructure:

The La Esperanza Silver-Zinc-Lead project covers 14,916 hectares, located 100 km SSE of the city of Durango on the border between Durango and Zacatecas States. The project site is easily accessible from Canasil’s operating base in Durango. The area is well served with power lines, water access and services, such as banks, medical services and labour, which are available in local municipalities. The project is also close to a number of prominent silver mines – San Martin mine operated by Grupo Mexico, the La Colorada mine of Pan American Silver and La Parrilla mine of First Majestic Silver Corp. The climate and topography are moderate and typical of the Eastern edge of the Sierra Madre Occidental volcanic province, with the rainy season between June and September, and colder temperatures in December and January.

Geology and exploration history:

The La Esperanza  vein is a banded and cockade white to grey quartz breccia epithermal vein with silver, lead and zinc mineralization associated with argentiferours galena, silver sulfasalts and sphalerite. There has been a history of past mining activity at La Esperanza with direct shipments of reportedly high-grade ore to local smelters. There are a number of surface pits and dumps with ore left over from past mining operations around the vein and mine area. The mine was last active in 1970, and was reportedly mined on three levels, using a main access shaft down to a depth of approximately 90 metres. The old workings reportedly caved in when some of the main ore rich pillars were exploited.

Canasil Exploration Programs:

Surface sampling program:

An initial geologic mapping and sampling program, undertaken in November 2005, included thirty-eight samples taken from dumps close to the vein and from surface pits over the vein and analyzed for gold plus 41 elements by ICP-MS by ALS Chemex Laboratories, Vancouver. The highest grades observed in these samples were 1,820 g/t silver, 10.05% lead and 8.66% zinc. 31 samples returned assays with over 100 g/t silver, with an average grade of 413 g/t silver, 2.17% lead and 3.08% zinc, as detailed in the table below and on the attached map:

La Esperanza Project - Surface Sampling November 2005

Sample
No.

Width
M

UTM Coordinates
East North

Elev.
(m)

Silver
g/t

Lead
%

Zinc
%

603

1.50

600591

2583576

2464

332

0.46

0.38

605

Dump

600553

2583623

2476

1,820

0.36

0.17

606

1.20

600547

2583650

2476

307

0.13

0.10

608

0.80

600541

2583660

2476

322

0.30

0.15

609

Dump

600527

2583697

2488

779

0.18

1.32

610

Dump

600510

2583720

2492

688

0.13

0.33

614

Dump

600652

2583515

2449

1,460

6.35

0.68

615

Dump

600638

2583499

2449

771

2.31

0.82

616

Dump

600634

2583503

2449

198

2.80

7.61

617

Dump

600630

2583506

2449

690

2.59

1.78

618

Dump

600626

2583490

2449

252

1.69

3.59

619

Dump

600625

2583496

2449

123

2.42

8.66

620

Dump

600623

2583501

2449

260

3.47

2.56

621

Dump

600620

2583495

2449

157

1.14

1.26

622

Dump

600616

2583503

2449

302

3.03

4.67

623

Dump

600551

2583534

2438

177

1.44

1.98

624

Dump

600535

2583540

2438

305

1.82

1.33

625

Dump

600516

2583546

2438

268

0.46

0.54

626

Dump

600504

2583543

2438

673

10.25

5.77

627

Dump

600492

2583545

2438

117

1.46

3.29

628

Dump

600493

2583534

2438

390

2.20

1.78

629

Dump

600486

2583542

2438

304

3.36

8.25

630

Dump

600480

2583536

2438

385

2.41

5.02

634

Dump

600459

2583538

2438

206

2.09

2.51

635

Dump

600446

2583535

2438

185

0.84

2.23

636

Dump

600431

2583533

2438

131

0.78

1.30

637

Dump

600418

2583510

2438

167

1.75

3.41

638

Dump

600405

2583512

2438

192

2.09

4.21

639

Dump

600391

2583514

2438

263

2.56

4.76

640

Dump

600371

2583506

2438

350

3.61

8.38

641

Dump

600355

2583506

2438

249

2.66

6.52

Average grade of 31 samples

413

2.17

3.08

 

Phase 1 Diamond Drill Program:

The Phase 1 diamond drill Program included 9 diamond drill holes for a total of 1,432 metres. This program has outlined a mineralized panel with a strike length of over 150 metres and depth of 100 metres, which is open in all directions, with vein widths of up to 10.30 metres carrying high-grade silver mineralization. Seven drill holes intersected the main La Esperanza vein (LE) and a hanging wall vein (HW) over significant widths The weighted average grade of mineralization intersected in the La Esperanza vein is 330 g/t (9.62 oz/ton) silver, 0.93% (18.60 lbs/ton) zinc and 1.57% (31.40 lbs/ton) lead over an average width of 4.21 metres. This vein includes several intercepts with very high silver grades of up to 2,144 g/t (62.53 oz/ton) silver over 0.75 metres. Average assay results are detailed below:

La Esperanza Project – Phase 1 Diamond Drill Program

Vein or Structure

Interval – Metres
From To

True
Width
Metres

Grades

Silver
g/t

Silver
oz/ton*

Zinc
%

Zinc
lbs/ton**

Lead
%

Lead
lbs/ton**

Diamond Drill Hole ES-06-02

La Esp.

100.22

107.74

5.14

210

6.13

1.25

25.00

1.03

20.60

Incl.

101.68

107.74

3.46

249

7.25

1.48

29.60

1.22

24.20

And

101.68

104.17

1.42

458

13.36

2.20

44.00

2.31

46.20

And

102.60

103.75

0.66

615

17.94

3.37

67.40

2.12

42.40

Diamond Drill Hole ES-06-03 

Hang. Wall

78.90

80.66

1.44

274

7.99

0.20

4.00

0.10

2.00

Incl.

78.90

79.74

0.69

449

13.10

0.20

4.00

0.09

1.80

La Esp.

102.80

104.30

1.23

287

8.37

0.38

7.60

2.12

42.40

Diamond Drill Hole ES-06-04

Hang. Wall

88.45

90.80

1.79

142

4.14

2.32

46.40

1.07

21.40

La Esp.

116.83

127.25

7.52

388

11.32

1.36

27.20

1.35

27.00

Incl.

118.92

121.58

2.09

634

18.49

1.56

29.00

1.45

29.00

And

124.47

127.25

2.12

593

17.30

0.35

7.00

1.09

21.80

Diamond Drill Hole ES-06-05

Hang. Wall

118.46

119.88

1.12

471

13.74

3.11

62.20

6.04

120.80

La Esp.

147.82

160.92

10.30

396

11.55

0.71

14.20

1.96

39.20

Incl.

147.82

152.03

3.31

746

21.76

0.57

11.40

2.20

44.00

And

148.22

150.15

1.52

1,360

39.67

0.38

7.60

3.40

68.00

And

148.22

149.17

0.75

2,144

62.53

0.29

5.80

3.20

64.00

Incl.

154.35

159.10

2.73

389

11.35

0.97

19.40

3.30

66.00

Diamond Drill Hole ES-06-06

Hang. Wall

116.23

118.15

1.35

160

4.67

1.18

23.60

1.40

28.00

La Esp.

130.35

130.76

0.29

192

5.60

0.60

12.00

0.51

10.20

Diamond Drill Hole ES-06-07

Hang. Wall

152.68

154.65

1.65

551

16.07

0.42

8.40

1.47

29.40

Includes

152.68

153.60

0.77

945

27.56

0.35

7.00

1.95

39.00

La Esp.

160.02

162.40

1.99

272

7.93

0.34

6.80

0.24

4.80

Diamond Drill Hole ES-06-08

La Esp.

183.85

196.40

4.69

115

3.35

1.02

20.40

1.30

26.00

Includes

183.85

189.30

2.04

122

3.56

0.96

19.20

1.66

33.20

And

192.63

196.40

1.41

168

4.90

1.04

20.80

1.57

31.40

Average width and grades Hanging Wall Vein

1.53

324

9.45

1.37

27.40

1.80

36.00

Average width and grades  La Esperanza Vein

4.21

330

9.62

0.93

18.60

1.57

31.40

* g/t (grams per metric tonne) is converted to oz/ton (ounces per short ton) by a conversion factor of 34.2856
** % zinc and % lead is converted to lbs/ton (pounds per short ton) using a conversion factor of 20 lbs per 1%

Expansion of Claim Area and District scale exploration potential:

Between 2007 to 2010 reconnaissance work indicated potential for further mineralized veins over a large area surrounding the original La esperanza claims. As a result the claims were gradually expanded to the current area of 18,954 hectares.  The La Esperanza Vein was traced by mapping of the collapsed workings over a strike length of 260 metres within rhyolite volcanics of the Upper Volcanic Series. Significant alteration zones are observed along strike extensions of the La Esperanza vein for over 4 km on a NW-SE trend. Additional vein outcrops and mineralized structures are also observed to the NW of the extended claim area approximately 15 km NW of the La Esperanza vein, indicating the potential for a large district scale epithermal system. Recent high grade silver-lead-zinc drill intercepts over significant widths reported by Pan American Silver at the La Colorada mine, located 35 km to the SE, confirm the potential in this district.

MAG Silver Joint Venture Agreement - August 2010 to May 2013

In August 2010, Canasil and MAG Silver signed of a binding letter agreement providing for MAG to earn a 60% interest in the project. MAG is a leading silver exploration and emerging development company in Mexico, with considerable experience and a very successful track record of high-grade silver discoveries in epithermal vein systems of the Fresnillo Silver Trend. Canasil’s La Esperanza project is located on the northern extension of the Fresnillo Silver Trend and has the potential for hosting a district scale epithermal high-grade silver mineralized system. To complete the earn-in of 60% interest in the project, MAG must complete CAD$5,000,000 exploration expenditures and CAD$500,000 cash payments to Canasil over a period of four years. The initial payment of CAD$50,000 upon signature and first year expenditure of CAD$750,000 are firm commitments, and will include a minimum of 1,500 metres of drilling.

MAG Silver Exploration program:

ZTEM / Magnetic Aerial Survey / Geological mapping / Stream sediment sampling:

MAG Silver Corp. completed a 1,330 line-kilometre ZTEM (Z-Axis Tipper Electromagnetic System) helicopter-borne aerial geophysical survey on the property in October 2010. The survey was used to highlight geological structures in the project area, and together with further surface mapping and sampling to define drill targets. The exploration programs by canasil and MAG have identified four known vein systems that have been traced over variable strike lengths ranging from 300 metres to over 1.9 kilometres.

MAG Phase 1 Drill program, Dec. 2011 to Feb. 2012:

MAG’s first three holes were drilled on one section 100 metres North West along strike from previous drilling carried out by Canasil on the main La Esperanza vein system (see attached figure). The best results were from the deepest hole ES12-03, which intersected a 10.28 metre (8.22 metres true width) section of quartz vein and breccia assaying 97 g/t silver, 1.1% lead and 2.3% zinc. Within this zone there is a higher grade interval reporting 278 g/t silver, 2.8% lead and 5.8% zinc over 2.42 metres. Hole ES11-02, drilled above the previous hole, intercepted 12.53 metre wide breccia laced with intermittent veins that carried higher grade intervals of 87 g/t silver, 0.8% lead and 2.4% zinc over 4.01 metres, including 192 g/t silver, 1.8% lead and 5.7% zinc over 1.49 metres. Near-surface hole ES11-01 hit three narrow intercepts with appreciable silver values ranging from 43 g/t  to 74 g/t , lead from 0.2% to 0.6%, and zinc values from 1.0% to 1.9% over 0.85 metres to 0.86 metres (see table below).

MAG Silver La Esperanza Phase 1 Drill Program

Hole ID

From

(metres)

To

(metres)

Interval

(metres)

Gold

(g/t)

Silver

(g/t)

Silver

(opt)

Lead

(%)

Zinc

(%)

Copper 

  (%)

True Width (Metres)

ES11-01

144.00

144.86

0.86

0.04

74

2.2

0.2

1.1

0.01

0.86

And

161.14

162.00

0.86

0.03

43

1.3

0.4

1.0

0.03

0.86

And

162.53

163.38

0.85

0.18

61

1.8

0.6

1.9

0.11

0.85

ES11-02

168.05

180.58

12.53

0.00

26

0.8

0.7

0.3

0.03

10.02

Including

185.33

189.34

4.01

0.02

87

2.5

0.8

2.4

0.04

3.21

Including

185.33

186.82

1.49

0.05

192

5.6

1.8

5.7

0.11

1.19

ES12-03

266.66

276.94

10.28

0.19

97

2.8

1.1

2.3

0.32

8.22

Including

266.66

273.20

6.54

0.23

139

4.1

1.5

3.3

0.43

5.23

Including

266.66

270.67

4.01

0.14

189

5.5

2.2

5.2

0.33

3.20

Including

266.66

269.02

2.42

0.17

278

8.1

2.8

5.8

0.09

1.94

(Ref: Canasil news Release dated 22.02.2012)

MAG completed 8 additional drill holes on the Esperanza Vein in 2012. These holes were blind step-outs on projection of the vein located 400 metres northwest, 350 metres southeast and 1,000 metres southeast of the previously drilled high-grade ore shoot, which returned very encouraging silver, zinc and lead intercepts in MAG’s initial 3 drill holes, as well as in previous drilling by Canasil.  These holes did not intercept the vein, possibly due to apparent post-mineral faulting that may have displaced the vein. MAG interpreted the large aeromagnetic anomaly observed in the Esperanza vein zone, measuring approximately 5 kilometres by 3 kilometres, as a possible signature of a significant mineralized system which is a target for further exploration.

MAG Phase 2 Drill program, Nov. 2012 to Jan. 2013:

MAG Silver’s Phase 2 drill program at La Esperanza consisted of 12 diamond drill holes for a total of 3,049.50 metres on two veins in the northwest of the project area – 9 drill holes on 5 sections along a total strike length of 835 metres to test the Fatima vein and 3 drill holes on 2 sections 350 metres apart to test the San Pascual vein.

The best intercept from the San Pascual vein was from drill hole SP12-01 at a core depth of 79.00 metres with 4.93 metres (true width 2.19 metres) of 0.19 g/t gold, 104.2 g/t silver, 2.57% lead and 7.88% zinc, including 2.77 metres (true width 1.23 metres) of 0.23 g/t gold, 162.2 g/t silver, 3.91% lead and 13.39% zinc. The best intercept from the Fatima vein was from drill hole FA12-05 at a core depth of 155.55 metres with 4.15 metres (true width 2.76 metres) of 0.07 g/t gold, 92.4 g/t silver, 0.98% lead and 0.11% zinc, including 2.76 metres (true width 1.84 metres) of 0.07 g/t gold, 111.5 g/t silver, 1.04% lead and 0.14% zinc. Detailed results for all drill holes are included in the table below.

MAG Silver La Esperanza Phase 2 Drill Program

Hole ID

From

(metres)

To

(metres)

Interval

(metres)

True Width

(metres)

Gold

(g/t)

Silver

(g/t)

Lead

(%)

Zinc

(%)

Fatima Vein

FA12-01

144.41

147.31

2.90

2.53

0.00

1.0

0.06

0.38

and

149.73

150.03

0.30

0.26

0.93

4.5

0.05

0.26

FA12-02

245.86

247.39

1.53

1.33

0.36

57.7

3.23

3.89

FA12-03

157.30

157.95

0.65

0.52

0.02

21.7

0.52

0.62

and

163.69

164.30

0.61

0.49

0.58

9.1

0.07

0.61

FA12-04

268.71

269.19

0.48

0.23

0.12

1.7

0.03

0.11

and

280.42

284.25

3.83

1.90

0.32

10.9

0.21

0.21

including

281.11

282.17

1.06

0.53

0.54

15.5

0.51

0.24

FA12-05

155.55

159.70

4.15

2.76

0.07

92.4

0.98

0.11

including

155,55

158.26

2.76

1.84

0.07

111.5

1.04

0.14

including

157.65

158.26

0.61

0.41

0.27

135.0

4.57

0.18

and

175.57

180.04

4.47

3.15

0.07

1.8

0.03

0.07

and

192.47

192.72

0.25

0.17

0.00

5.3

0.01

1.25

FA12-06

65.26

65.96

0.70

0.30

0.01

14.7

0.01

0.04

and

282.66

286.21

3.55

1.50

0.12

17.7

0.08

0.09

Including

284.14

285.35

1.21

0.51

0.28

35.3

0.16

0.12

Including

286.81

287.91

1.10

0.46

0.00

16.7

0.00

0.14

FA12-07

279.13

280.48

1.35

1.26

0.02

11.3

0.17

0.26

FA12-08

202.39

205.51

3.12

2.87

0.15

51.8

2.45

0.04

including

202.39

204.26

1.87

1.72

0.23

89.2

3.88

0.05

and

235.14

236.03

0.89

0.82

1.67

37.7

11.45

0.11

FA12-09

259.13

262.13

3.00

1.89

0.08

1.1

0.02

0.05

San Pascual Vein

SP12-01

79.00

83.93

4.93

2.19

0.19

104.2

2.57

7.88

including

79.00

81.77

2.77

1.23

0.23

162.2

3.91

13.39

including

79.00

79.80

0.80

0.44

0.07

270.0

7.98

23.00

including

81.00

81.77

0.77

0.34

0.71

286.0

5.62

24.00

(Ref: Canasil News Release dated 23.01.2013)