Nearest City:Oaxaca City 170 km (Combined Population ~ 350,000)
Infrastructure:Excellent road access, skilled labor nearby
Utilities:Water and power access
Labour:Experienced Mexican geologists and local technical labor
Communities:San Juan LaJarcia, San Bartolo Yautepec
Ownership:Option to acquire 100%
Caldera associated-tertiary volcanic rocks highly prospective for hosting epithermal precious metal mineralization, similar to nearby producing mines. The mapped altered rocks along the trend are part of a nearly 100km-long structural- volcanic corridor that extends from the San Jose mine (Fortuna Silver) to the northwest, to Chesapeake Gold’s Gitana project to the southeast.
Trace of 20km Caldera Margin with high potential for undiscovered Bonanza grade epithermal Systems.
Two rounds of reconnaissance mapping and geochemical sampling that have revealed widespread metal anomalies in multiple areas on its Yautepec project. The exploration efforts are being focused on a 22-kilometer zone consisting of a geological structure similar to those known to host bonanza type epithermal systems at the nearby producing San Jose (Fortuna Silver Mines Inc., TSX: FVI) and Arista-Switchback (Gold Resource Corp., NYSE: GORO) mines.
A total of 162 samples were taken of prospective rock types, with a focus on high potential areas identified during the first period of work as discussed in a prior news release dated July 16, 2019. Significant new results include:
|Element||Maximum values||Lithology of highest value||Samples with Significant values|
|Precious metals||Ag||308 grams||Quartz vein bounding silica sinter complex||11 > 10 grams|
|Au||1.07 grams||Quartz vein bounding silica sinter complex||11 > 0.20 grams|
|Base metals||Cu||99 ppm||Sinter complex: silica-carbonate||12 > 50 ppm|
|Pb||464 ppm||Quartz vein - brecciated||17 > 100 ppm|
|Zn||548 ppm||Quartz vein bounding silica sinter complex||14 > 100 ppm|
|Mo||102 ppm||Quartz vein - brecciated||3 > 50 ppm|
|Pathfinder elements||As||9.26%||Felsic intrusion - brecciated||18 > 1000 ppm|
|Ba||3780 ppm||Hydrothermal breccia||17 > 1000 ppm|
|Hg||29.5 ppm||Sinter: silica - carbonate||18 > 1 ppm|
|Sb||307 ppm||Sinter complex: breccia||8 > 100 ppm|
|Se||16.7 ppm||Felsic intrusion - brecciated||30 > 2 ppm|
|Te||5.27 ppm||Quartz vein bounding silica sinter complex||19 > 0.20 ppm|
|Tl||3.35 ppm||Sinter complex: silica||10 > 1 ppm|
To date, exploration sampling has yielded silver values up to 308 grams and gold values to 1.07 grams in an historically undocumented quartz vein system of impressive length with structural widths up to 7 meters, based on surface mapping to date. In tandem with the adjacent mineralized hot springs complex (sinter), we have generated a series of high priority drill targets after only two periods of fieldwork.
The majority of new samples were collected from a quartz vein system exposed along a 530-meter northwest-southeast trend, and as well from an immediately adjacent fossil hot springs system (sinter), developed along the same trend for 770 meters with widths up to 215 meters (~95,000 square meters minimum surface area). These and prior results show that both the quartz vein system and sinter complex are mineralized and are logically genetically related. The presence of sinter indicates that the full vertical extent of potential bonanza style epithermal mineralization is conserved at depth, this inferred from the fact that most known systems of this style are not well mineralized within 150 meters of documented ‘paleo’ surfaces (Sillitoe, 2015*). The northwest-southeast structural trend of the quartz vein and sinter complex is similar to that of nearby producing mines on the Oaxaca epithermal Au-Ag belt, such as Gold Resource Corp’s [NYSE: GORO] Arista-Switchback mine, and Fortuna Silver Mines’ [TSX: FVI] San Jose mine.
The targets identified to date represent a small portion of the greater Yautepec project; multiple outlying exploration targets await further work which could potentially yield similar encouraging results. Madoro has planned additional field work to test soil samples and is planning a maiden drill program to test high priority targets in areas with previously-encountered mineralization.
Rob Johansing, M.S., C.P.G. Consulting Geologist, a qualified person in accordance with NI 43-101, has reviewed and accepted the technical information in this news release.