La Joya Silver Project

 

Location: 75 kilometres southeast of the city of Durango, Mexico.

  • Excellent Infrastructure & Access: Highway
  • Railway and Power Lines nearby
  • 2 Hour Drive From Durango City & International Airport

Geological Model & Completed Phase I & II Drill Program

On December 23, 2013, a technical report was released and titled, Preliminary Economic Assessment for the La Joya Property, Durango, Mexico, with an effective date October 21, 2013, as amended March 4, 2014 (“PEA”). The PEA was prepared following the standards established in NI 43-101 by EBA Engineering Consultants, a Tetra Tech Company (EBA).

The Company cautions that the PEA is preliminary in nature in that it is based on Inferred Mineral Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The PEA focuses on the first stage of La Joya development ("Starter Pit") as a low strip, open pit with an initial 9-year life of mine plan ("LOMP"). The conceptual open pit operation would be in conjunction with a 5,000 tonnes per day (tpd) conventional mill and flotation/leaching plant to produce a high-grade silver-copper concentrate with gold credits.

La Joya Resources

The La Joya mineral deposit is defined as a silver copper- gold skarn with disseminated to semi-massive sulphide (bornite –chalcopyrite) with three main ore types; Mantos, Structures and Contact Zone. The updated Mineral Resource estimations for the La Joya Project, considering a cutoff grade of 60 g/t Ag-Eq, provided estimated Inferred Resources of 27.9 million tonnes grading 58 g/t Ag, 0.48% Cu and 0.28 g/t Au containing 51.6 million ounces of silver, 295 million pounds of copper and 251,400 ounces of gold.

Ag Eq
Cut Off g/t
Tonnage (M)

Ag (g/t)

Cu (%)

Au (g/t)

Ag-Eq (g/t)

Ag (M Oz) Au (K Oz) Cu (M Lbs) Ag-Eq* (M Oz)
Inferred 60 27.9 58 0.48 0.28 103 51.6 251.4 295.0 100.8

*Silver equivalency (Ag-Eq) includes silver, gold and copper and excludes lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends ofUS$24/oz silver, US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is assumed. All numbers are rounded. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources. Note that Ag-Eq calculation for resources is different than PEA economic analysis based on change in metal prices. Mineralization boundaries used in the interpretation of the geological model and resource estimate are based on a cut-off grade of 15 g/t AgEq using the metal price ratios described above.

 

Geology & Mineralization

The La Joya Property is underlain by Cretaceous sediments along the western margin of the Mexican Mesa Central, at the transition from the Sierra Madre Occidental, along the broadly defined San Luis-Tepehuanes fault system. The fault system is commonly referred to as the Mexican Silver Belt based on the country scale distribution of silver producing mines juxtaposed along the trend. The sedimentary package at La Joya consists of the Cuesta del Cura Limestone comprised of limestone with minor chert and siltstone overlain by the younger Indidura Formation comprised of calcareous siltstone, mudstone and siliciclastics.

The La Joya Deposit is a carbonate hosted copper skarn deposit with associated silver and gold mineralization, similar in style to the Fortitude-Copper Canyon deposit in Nevada, USA, and to the Sabinas/San Martin mines in Zacatecas, Mexico. Calcsilicate skarn mineralization is found on the property as andradite garnet, pyroxene, actinolite and wollastonite and is distributed amongst three styles of mineralization recognized to exist on the property. Ag-Cu-Au mineralization is concentrated within stratiform manto-style skarn controlled along sub-horizontal bedding. Ag-Cu-Au, Pb-Zn, and W mineralization is concentrated within structurally controlled stockwork and veining related skarn. Finally, W mineralization is found within late stage retrograde skarn development along the intrusive contact.

Sulphide mineralization generally transitions from chalcopyrite-dominant in proximal skarn to bornitedominant in distal skarn. Late sub-vertical laminated quartz-calcite veins bearing freibergite and arsenopyrite cross-cut pre-existing skarn mineralization and, although related to magmatic fluids, is not considered to be related to the skarn mineralizing events. Trace amounts of oxide from meteoric weathering processes are present within the structural corridors at depth.

 

Maps

Mexico Map
 

Mexico Map
Geological Model & Completed Phase I & II Drill Program
 

Geological Model & Comple…
Geology & Mineralization
 

Geology & Mineralization