Caza Gold Corp.
Santiago
Introduction:
Santiago is a low-sulphidation, epithermal gold exploration project located in the famous Batopilas district of Chihuahua, Mexico. The 173-hectare property covers two prominent iron oxide-silica-clay alteration zones, one of which (North Zone) surrounds eight parallel, high-grade, gold-bearing, quartz-sulfide veins (see table below). These properties have been owned by the same family for over 100 years and have never been explored by modern methods. Canarc can obtain 100% interest in the Santiago property.
Current Status
A Phase 1 exploration program of geological mapping and rock sampling was completed in September. Assays are pending.
Location and Access:
The contiguous Santiago, Santiago II and Sanchez properties (173 hectares) are located 12 km east of the town of Batopila in the state of Chihuahua, Mexico. Local infrastructure is good as the property is road accessible and a state power line crosses the property.
Ownership:
Canarc can acquire a 100% interest in the Santiago project by making US$2 million in cash payments over a 5 year period, spending US$200,000 on exploration within the first 2 years, and by granting a 2% net smelter royalty on mineral production to the vendors.
The Company can acquire up to a 75% interest in a 791 hectare portion of EXMIN's Huimayvo concession (hereafter termed the "Santiago Fraction"), which surrounds the 173 hectare Santiago Gold Project, by issuing 15,000 common shares (subject to regulatory approvals), paying US$25,000 after 1 year and spending up to US$1 million over up to 5 years. After vesting, Canarc and EXMIN will form a joint venture to continue the exploration and development of the Santiago Fraction.
Geology and Mineralization:
Like most of the epithermal vein districts in the Sierra Madre gold-silver belt of Mexico, such as Ocampo (Gammon Lake) or Tayoltita (Goldcorp), mineralization at Batopila is hosted by the early-Tertiary Lower Volcanic andesites, capped by mid-Tertiary Upper Volcanic rhyolites and intruded by mid-Tertiary granodiorites.
Gold mineralization appears to be associated with disseminated to semi-massive pyrite-arsenopyrite carried within the quartz veins and stockwork zones. Minor disseminated galena, argentite and chalcopyrite have also been observed in the veins.
Exploration
In March 2006, the SGM (Mexican Geological Survey) carried out a rock sampling program of the North Zone at Santiago and reported a 200 m long by 100 m wide by 70 m deep mineralized zone with potential to host 3.78 million tonnes grading 1.0 gpt gold and 20 gpt silver. The North Zone alteration has been traced for over 400 m in length and the better potential might be the high grade veins contained within rather than the bulk tonnage, low grade potential. These estimates should not be taken as NI 43-101 compliant resources; they are simply an indication of the initial exploration upside on the properties. Canarc geologists sampled three of the eight know veins in the North Zone and channel sampling returned consistently high-grade gold assays as follows:
|
Vein |
Width |
Gold |
|
|
(m) |
(ft) |
(gpt) |
(opst) |
|
|
|
|
|
|
|
Veta Verde |
2.5 |
8.2 |
17.7 |
0.52 |
|
|
incl. 1.0 |
3.3 |
24.1 |
0.70 |
|
|
|
|
|
|
|
Los Tajos |
5.0 |
16.4 |
7.0 |
0.20 |
|
|
incl. 2.0 |
6.7 |
13.7 |
0.40 |
|
|
|
|
|
|
|
Veta Blanca |
|
|
|
|
|
Sample 1 |
2.3 |
7.5 |
30.3 |
0.88 |
|
|
incl. 1.1 |
3.6 |
60.3 |
1.76 |
|
|
|
|
|
|
|
Sample 2 |
2.1 |
6.9 |
14.9 |
0.44 |
|
|
incl. 1.0 |
3.3 |
25.3 |
0.74 |
Canarc will commence a Phase 1 exploration program comprised of additional sampling of the other 5 know veins, extending the road to provide better access, to prepare for diamond drilling of the North Zone.
|
