La Esperanza, Zacatecas State, Mexico – Project Summary (May 2017):
- Large project area 14,916 hectares
- Multiple high grade Silver-Gold-Zinc-Lead epithermal veins
- On the Fresnillo trend, 80 km northwest of Fresnillo PLC Fresnillo mine, close to Pan American Silver La Colorado, First Majestic Silver La Parilla and Del Toro mines and San Martin-Sabinas and Sombrete mining camps
- Potential for large district scale high grade epithermal vein system
- Excellent infrastructure, power, water, services
- History of past small scale mining
- Dump samples returned up to 1,820 g/t Ag, 10.25% Pb, 8.25% Zn
- Sept. 2006 Drill program, 1,432 metres (m) in 9 drill holes, drill intercept 10.30 (m) True Width (TW) with 396 g/t silver, 0.71% zinc and 1.91% lead, including 2,144 g/t silver over 0.75 m
- August 2010 to May 2013, ASTER Imaging and 1,330 line-km ZTEM airborne geophysics, 23 drill holes for 6,296 m. La Esperanza vein intercept: 1.94 m TW 278 g/t Ag, 8.6% Pb + Zn, San Pascual (northwest area) vein intercept: 1.23 m TW 162 g/t Ag, 17.3% Pb + Zn
- Canasil Dec. 2016 to May 2017 drill program completed 8 drill holes for 2,452 m
- ES-17-16: 4.92 m TW 257 g/t Ag, 1.27% Pb + Zn, including 0.95 m TW 1,133 g/t Ag, 4.54% Pb + Zn
- ES-17-19: 11.23 m TW 219 g/t Ag, 1.33% Pb + Zn, including 1.11 m TW 6.39 g/t Au, 1,281 g/t Ag, 1.43% Pb + Zn
2020 – 2021 Planned Drill Program
The La Esperanza vein, located in the southeast of the project area, outcrops for 150 metres and has seen past artisanal mining to a depth of 100 metres below the vein outcrop. Airborne geophysics and the surface alteration signature indicate that the buried vein structure may extend up to five kilometres along a NW-SE strike. The vein textures and symmetry of the vein observed in past drill intercepts suggest a well-developed epithermal environment hosting high-grade gold, silver, lead and zinc mineralization. Drilling to date has delineated the La Esperanza vein mineralized envelope over a strike distance of 425 metres and to a depth of 350 metres. The planned drill program is designed to expand this envelope in both directions along strike and below prior drill holes, as outlined in the table, plan map and long section below:
| La Esperanza Vein - Past High-Grade Drill Intercepts and Proposed 2020 Drill Plans | ||||||||||
| Interval - Metres | Width – Metres | Gold | Silver | Zinc | Lead | Copper | Silver Eq* | |||
| From | To | Interval | True | Au g/t | Ag g/t | Zn % | Pb % | Cu % | Ag Eq g/t | |
| Drill Hole ES-17-16 – Southeast Extension (Announced April 05, 2017) | ||||||||||
| 139.41 | 145.35 | 5.94 | 4.92 | 0.01 | 257 | 0.64 | 0.63 | 0.03 | 321 | |
| Including | 143.00 | 145.35 | 2.35 | 1.95 | 0.03 | 628 | 0.90 | 1.52 | 0.08 | 750 |
| Including | 144.20 | 145.35 | 1.15 | 0.95 | 0.06 | 1,133 | 1.56 | 2.98 | 0.16 | 1,362 |
| SE Targets: ES-20-22 and Planned Holes DDH-20E, 20F, 20G - Step-outs to the SE Along Strike and to Depth | ||||||||||
| 296.44 | 309.41 | 12.97 | 11.23 | 0.74 | 219 | 0.90 | 0.43 | 0.05 | 382 | |
| HW Vein | 296.44 | 298.83 | 2.39 | 2.07 | 0.04 | 261 | 2.09 | 0.92 | 0.15 | 406 |
| Main Vein | 298.33 | 302.01 | 3.18 | 2.75 | 2.76 | 552 | 1.16 | 0.63 | 0.08 | 850 |
| Including | 300.73 | 302.01 | 1.28 | 1.11 | 6.39 | 1,281 | 2.23 | 1.25 | 0.18 | 1,938 |
| FW Vein | 306.88 | 308.62 | 1.74 | 1.51 | 0.39 | 256 | 1.68 | 0.74 | 0.02 | 406 |
| NW Targets: Planned Drill Holes DDH-20A, 20B, 20C and 20D – Step-outs to the NW Along strike and to Depth | ||||||||||
| *Silver equivalents assume 100% recoveries (for Ag Eq calculation only – may not reflect actual recoveries) and Ag US$17/oz, Au US$1,250/oz, Cu US$2.50/lb, Zn US$1.30/lb, and Pb US$1.00/lb. The metal prices used are for reference only, and at the time of this report may differ. |
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La Esperanza Vein Drill Plan Map with Prior and Planned Drill Holes
La Esperanza Vein Long Section with Prior Drill Intercepts and Planned Drill Holes Projected Intercepts
La Esperanza Project Area Showing Multiple Vein Outcrops with Past Drilling and Surface Sample Results
2016-17 Drill program, Dec. 2016 to May 2017:
This program included eight diamond drill holes for a total of 2,452 m, targeted to test step-outs along strike and to depth from prior known intercepts on the La Esperanza vein. All drill holes successfully intersected the La Esperanza vein confirming a mineralized envelope of approximately 400 m along strike and to a depth of 425 m. The relatively wide mineralized structures and high grade silver-zinc-lead intervals observed in this program suggest a strong mineralized system which remains open in both directions to the southeast and northwest along strike and to depth. Of particular note is also the high gold grades observed together with high silver grades in drill hole ES-17-19. The results of this program are included in the table below and drill hole locations indicated on the plan map and long section below:
| La Esperanza 2016-17 Drill Program – December 2016 to May 2017 | ||||||||||
| Hole ES-16-12 | ||||||||||
| Interval - Metres | Width – Metres | Gold | Silver | Zinc | Lead | Copper | Silver Eq* | |||
| From | To | Interval | True | Au g/t | Ag g/t | Zn % | Pb % | Cu % | Ag Eq g/t | |
| 347.36 | 348.94 | 1.58 | 1.36 | 0.08 | 23.0 | 1.98 | 1.31 | 0.04 | 192 | |
| Including | 347.36 | 347.83 | 0.47 | 0.41 | 0.08 | 16.5 | 4.81 | 2.89 | 0.02 | 398 |
| And | 348.47 | 348.94 | 0.47 | 0.41 | 0.16 | 57.9 | 1.74 | 1.45 | 0.11 | 251 |
| 368.40 | 370.07 | 1.67 | 1.44 | 0.11 | 5.0 | 3.60 | 0.75 | 0.03 | 309 | |
| Including | 369.45 | 370.07 | 0.62 | 0.54 | 0.27 | 8.9 | 9.64 | 2.00 | 0.00 | 584 |
| 387.16 | 390.73 | 3.57 | 3.08 | 0.14 | 21.0 | 2.63 | 0.82 | 0.08 | 211 | |
| Including | 387.16 | 389.87 | 2.71 | 2.34 | 0.17 | 26.0 | 2.17 | 1.07 | 0.09 | 206 |
| Including | 387.71 | 388.71 | 1.00 | 0.86 | 0.10 | 35.0 | 2.63 | 0.78 | 0.14 | 227 |
| Including | 387.71 | 388.01 | 0.30 | 0.26 | 0.12 | 38.2 | 3.57 | 1.43 | 0.14 | 308 |
| And | 388.01 | 388.35 | 0.34 | 0.29 | 0.08 | 51.5 | 3.31 | 0.66 | 0.20 | 278 |
| And | 389.36 | 389.87 | 0.51 | 0.44 | 0.54 | 33.2 | 4.38 | 3.64 | 0.13 | 469 |
| Bit fused unable to complete hole, may not have intersected entire vein structure | ||||||||||
| Hole ES-17-13 | ||||||||||
| 421.38 | 422.20 | 0.82 | 0.71 | 0.30 | 131 | 0.64 | 0.23 | 0.84 | 281 | |
| Hole lost in cavity, may not have intersected or recovered entire vein structure | ||||||||||
| Hole ES-17-14 | ||||||||||
| HW Vein | 176.30 | 179.50 | 3.20 | 2.13 | 0.01 | 38 | 0.50 | 0.14 | 0.02 | 70 |
| La Esp | 187.40 | 190.40 | 3.00 | 2.51 | 0.01 | 63 | 0.50 | 0.15 | 0.03 | 98 |
| Vein intercept close to fault, broken and soft material, low recoveries | ||||||||||
| Hole ES-17-15 | ||||||||||
| 202.90 | 208.32 | 5.42 | 4.14 | 0.10 | 33 | 1.06 | 0.63 | 0.02 | 122 | |
| Including | 202.90 | 204.95 | 2.05 | 1.56 | 0.05 | 51 | 1.90 | 1.38 | 0.03 | 215 |
| Vein intercept close to fault, broken and soft material, low recoveries | ||||||||||
| Hole ES-17-16 | ||||||||||
| 139.41 | 145.35 | 5.94 | 4.92 | 0.01 | 257 | 0.64 | 0.63 | 0.03 | 321 | |
| Including | 143.00 | 145.35 | 2.35 | 1.95 | 0.03 | 628 | 0.90 | 1.52 | 0.08 | 750 |
| Including | 144.20 | 145.35 | 1.15 | 0.95 | 0.06 | 1,133 | 1.56 | 2.98 | 0.16 | 1,362 |
| Hole ES-17-17 | ||||||||||
| HW 1 Vn | 240.15 | 242.48 | 2.33 | 2.02 | 0.00 | 89 | 1.82 | 1.00 | 0.01 | 228 |
| HW 2 Vn | 248.33 | 248.60 | 0.27 | 0.23 | 0.04 | 236 | 0.28 | 8.43 | 0.06 | 618 |
| HW 3 Vn | 250.02 | 252.00 | 1.98 | 1.71 | 0.03 | 225 | 1.30 | 0.59 | 0.12 | 332 |
| Including | 250.02 | 251.21 | 1.19 | 1.03 | 0.03 | 277 | 2.01 | 0.81 | 0.19 | 438 |
| Main Vn | 258.70 | 265.41 | 6.71 | 5.81 | 0.10 | 204 | 1.83 | 1.46 | 0.07 | 376 |
| Including | 259.25 | 260.60 | 1.35 | 1.17 | 0.03 | 233 | 0.98 | 1.03 | 0.08 | 338 |
| And | 261.84 | 262.75 | 0.91 | 0.79 | 0.11 | 347 | 2.98 | 2.20 | 0.02 | 606 |
| And | 264.51 | 265.41 | 0.90 | 0.78 | 0.10 | 244 | 3.00 | 2.04 | 0.03 | 498 |
| FW Vein | 272.60 | 272.72 | 0.12 | 0.10 | 0.12 | 30 | 3.61 | 1.84 | 0.04 | 310 |
| Holes ES-17-18 | ||||||||||
| 257.49 | 265.31 | 7.82 | 6.77 | 0.04 | 79 | 0.68 | 0.53 | 0.03 | 141 | |
| Including | 257.49 | 259.65 | 2.16 | 1.87 | 0.03 | 231 | 1.19 | 1.38 | 0.03 | 357 |
| Including | 258.98 | 259.65 | 0.67 | 0.58 | 0.04 | 358 | 0.70 | 1.85 | 0.03 | 479 |
| Hole ES-17-19 | ||||||||||
| 296.44 | 309.41 | 12.97 | 11.23 | 0.74 | 219 | 0.90 | 0.43 | 0.05 | 382 | |
| HW Vein | 296.44 | 298.83 | 2.39 | 2.07 | 0.04 | 261 | 2.09 | 0.92 | 0.15 | 406 |
| Main Vn | 298.33 | 302.01 | 3.18 | 2.75 | 2.76 | 552 | 1.16 | 0.63 | 0.08 | 850 |
| Including | 300.73 | 302.01 | 1.28 | 1.11 | 6.39 | 1,281 | 2.23 | 1.25 | 0.18 | 1,938 |
| FW Vein | 306.88 | 308.62 | 1.74 | 1.51 | 0.39 | 256 | 1.68 | 0.74 | 0.02 | 406 |
| *Silver equivalents calculated assuming 100% recoveries (for Ag Eq calculation only – may not reflect actual recoveries) and Ag US$17/oz, Au US$1,250/oz,Cu US$2.50/lb, Zn US$1.30/lb, and Pb US$1.00/lb | ||||||||||
Reported in Canasil news releases dated Feb. 9, Mar. 23, Apr. 5, and May 2, 2017
La Esperanza Project, Durango & Zacatecas, Mexico: La Esperanza Vein Drill Plan and Long Section
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 location in southern Durango and northern Zacatecas States is in one of Mexico’s premier silver mining centres, hosting a number of prominent silver mines – San Martin-Sabinas mines of Grupo Mexico and Penoles, the La Colorada mine of Pan American Silver and La Parrilla and Del Toro mines of First Majestic Silver Corp., approximately 80 km northwest of fresnillo PLC’s Fresnillo silver mine. 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 outcropping rocks observed at La Esperanza belong to the Lower Volcanic group of Tertiary age, mainly composed of rhyolites and andesites. A series of silver-lead-zinc epithermal veins are observed over a northwest-southeast striking zone extending over approximately 15 kilometres hosted in the Lower Volcanic Group. Mineralization occurs in low to intermediate sulphidation veins, primarily striking northwest and dipping southwest. The main La Esperanza vein is a banded and cockade white to grey quartz breccia epithermal vein with silver, gold, 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 m.
Prior Exploration Programs:
Initial Surface sampling and geological mapping:
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:
| 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 | ||||
Diamond Drill Program (2006 – 2007):
The Phase 1 diamond drill Program included 9 diamond drill holes for a total of 1,432 m. This program outlined a mineralized panel with a strike length of over 150 m and depth of 100 m, which is open in all directions, with vein widths of up to 10.30 m 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 was 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 m. 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 m. Average assay results are detailed below:
| La Esperanza Project 2006 – 7 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 | |||||||||
| Avg. LE | 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 | |||||||||
| Avg. HW | 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 |
| Avg. LE | 102.80 | 104.30 | 1.23 | 287 | 8.37 | 0.38 | 7.60 | 2.12 | 42.40 |
| Diamond Drill Hole ES-06-04 | |||||||||
| Avg. HW | 88.45 | 90.80 | 1.79 | 142 | 4.14 | 2.32 | 46.40 | 1.07 | 21.40 |
| Avg. LE | 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 | |||||||||
| Avg. HW | 118.46 | 119.88 | 1.12 | 471 | 13.74 | 3.11 | 62.20 | 6.04 | 120.80 |
| Avg. LE | 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 | |||||||||
| Avg. HW | 116.23 | 118.15 | 1.35 | 160 | 4.67 | 1.18 | 23.60 | 1.40 | 28.00 |
| Avg. LE | 130.35 | 130.76 | 0.29 | 192 | 5.60 | 0.60 | 12.00 | 0.51 | 10.20 |
| Diamond Drill Hole ES-06-07 | |||||||||
| Avg. HW | 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 |
| Avg. LE | 160.02 | 162.40 | 1.99 | 272 | 7.93 | 0.34 | 6.80 | 0.24 | 4.80 |
| Diamond Drill Hole ES-06-08 | |||||||||
| Avg. LE | 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 HW | 1.53 | 324 | 9.45 | 1.37 | 27.40 | 1.80 | 36.00 | ||
| Average width and grades LE | 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:
From 2007 to 2010 reconnaissance work carried out 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 14,916 hectares, all 100% owned by Canasil. The La Esperanza Vein was traced by mapping of the historical mine workings over a strike length of 260 m. 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. High grade silver-lead-zinc drill intercepts over significant widths reported by Pan American Silver since 2008/9 at the La Colorada mine, located 35 km to the SE, and expansion of reserves and production at La Colorada confirm the potential in this district.
Exploration program August 2010 to May 2013 :
From August 2010, to May 2013 the project was advanced under an option agreement with MAG Silver Corp. (MAG). ASTER satellite imaging and a 1,330 line-kilometre ZTEM (Z-Axis Tipper Electromagnetic System) helicopter-borne aerial geophysical survey were completed in October 2010. The ZTEM survey was used to highlight geological structures in the project area. Geological mapping and surface rock and stream sediment sampling was also conducted focused on four known vein systems in the project area to define drill targets. This was followed by two phases of diamond drilling for a total of 6,296 m in 23 drill holes on the La Esperanza vein and the Fatima and San Pascual veins.
Drill program, Dec. 2011 to Feb. 2012:
Three holes were drilled on a section 100 metres northwest along strike from previous drilling carried out by Canasil on the main La Esperanza vein. All three holes intersected the vein returning increasing widths and silver-zinc-lead grades with depth:
| 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)
Eight additional drill holes were completed on the Esperanza Vein in 2012. These holes were blind step-outs on projection of the vein located 400 m northwest, 350 m southeast and 1,000 m southeast of the previously drilled high-grade ore shoot, which had returned very encouraging silver, zinc and lead intercepts. These holes did not intercept the vein; some holes were lost in faults and not completed, and others may not have reached the vein possibly due changes in the strike and dip angles of the vein over the large step-outs from the known zone. The large aeromagnetic anomaly observed in the Esperanza vein zone, measuring approximately 5 km by 3 km, was interpreted as the possible signature of a significant mineralized system which is a target for further exploration.
Drill program, Nov. 2012 to Jan. 2013:
This program consisted of 12 diamond drill holes for a total of 3,049.50 m 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 m apart to test the San Pascual vein with results included in the table below.
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)