Press Release Source: Mexoro Minerals Ltd.
Mexoro Minerals Corporate Update
Tuesday November 6, 6:00 am ET
VANCOUVER, British Columbia, Nov. 6 /PRNewswire-FirstCall/ -- Mexoro Minerals Ltd. Corporate Update (OTC Bulletin Board: MXOM - News).
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Mexoro Minerals Ltd. provides a corporate update on the Company's four gold and silver properties in the Sierra Madre area in the state of Chihuahua, Mexico:
Cieneguita -- The Cieneguita property, located in the state of Chihuahua, has the potential for resources indicated from previous exploration work done by Glamis Gold of approximately 350,000 ounces of gold. The mine was previously operated by the Mexican subsidiary of Glamis Gold. Hence an established infrastructure exists that will ease the return of the property to production. Glamis' reports show they mined and processed 198,000 metric tonnes of ore with a grade of 2.33 grams per tonne. Glamis closed production at Cieneguita in the mid-90's. At current gold prices the potential reserves of the Cieneguita property makes an appropriate exploration and development property for the Company with its objective of becoming a profitable mid-tier mining company.
The Company has acquired most of the mining equipment to put the property back into production. The remaining parts are currently being manufactured locally in Mexico and will be shipped to the property over the next 60 days. The ponds and the pads for the heap leach operation are mostly completed and the company is negotiating with third parties for the installation of the pad liners. The mine should be constructed and completed by early January 2008 with the first gold to be produced by March 2008.
Our initial estimates are that the property should produce approximately 1,500 ounces per month at a total expected mining cost of $300 per ounce. Such production would give net cash flow from operations of approximately $6,000,000 per year at current gold prices. Cieneguita has existing infrastructure that will support a mining operation including power, water, nearby railroad transportation and all weather road access.
Potential in the region surrounding Cieneguita is significant. During the past 50 years, there have been many small and medium sized mines in operation, some still presently operating. Recently, significant discoveries of ore deposits containing a large amount of gold have been located at El Sauzal and Churuhuaivo. More importantly though is the potential with Cieneguita property as evidenced by the underlying geological structure of the property. A sulphide ore body has been identified below the indicated oxide zone. The sulphide ore body has the potential to measure a strike length of 1 kilometer, 200 metres wide and 300 metres deep. Glamis originally drilled seven holes into this structure and as such, it is a prime exploratory drilling target for the Company.
Sahuayacan -- The Sahuayacan property is a classic low-sulphidation gold-silver epithermal district with the mineralization being controlled mainly by north-northwest and northwest striking structures. Economic mineralization is contained in high-grade ore-shoots located along a 4 km mineralized northwest trending structures known as Santo Nino and Santa Teresa.
The last area tested as part of the recently completed drilling program at Sahuayacan was the Santa Teresa target, where two drill holes (SDH-11 and SDH-12) were completed. The objective of those two drill holes is the attempt to extend the areas high grade mineralization and further define the margins of the Sahuayacan mineralized system to the south and southeast of the project area.
The drill hole SDH-12 has intersected a high grade mineralized zone, consisting of 7.5 meters with 56.01 g/t Au and 283.22 g/t Ag. The following are the assay intercepts from the Santa Teresa structure:
Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
SDH-12 74.50 76.00 1.50 6.21 148
76.00 77.50 1.50 0.716 8.5
77.50 79.00 1.50 268.75 1215
79.00 80.50 1.50 2.46 39.8
80.50 82.00 1.50 1.93 4.8
Additional check assays of the core from 77.50 to 79.00 returned values of 431 g/t Au and 1,490 g/t Ag over 1.5 meters. These results have not been included in the calculation until they have been qualified and confirmed by the Company. We do expect it to be normal to find these extremely high grade zones in our assays as similar ore was mined in this same area in the early 1900s. Furthermore, other large mineral discoveries by other companies in the area have also reported such high grade zones in their drilling results greatly enhancing the economics of the deposits that have been found. Management is very encouraged by results returned in this hole.
Surface mapping and drilling results are suggesting that the high gold values tend to cluster at certain areas along the Santo Nino and the Santa Teresa vein structures with intervening areas of low gold grades. The cluster of high gold values indicate the development of ore shoots within the extensive Sahuayacan system as evidenced by the intercepts from the SDH-1 in the Santo Nino vein (March 13, 2007 press release, where intersections includes 7.50 meters with 2.56 g/t Au and 8.0 meters with 2.98 g/t Au) and the SDH-12 along the Santa Teresa vein.
SDH-12 shows that the potential for a significant increase in the Santa Teresa mineralization area. As well it appears that the mineralization is controlled by NWN structures running from the Santa Teresa target up to the north to the La Cumbre target. Following the evaluation of the drilling results, Mexoro's exploration team will further evaluate the Sahuayacan system by reverse circulation drilling at La Cumbre and diamond drilling at Santa Teresa and Santo Nino to test the veins. This program will help to define the potential volume and grade of a large portion of the mineralized veins systems at Sahuayacan.
Guazaparez -- Also located in the state of Chihuahua, the Guazaparez property ("Guazaparez") is being explored. The Guazapares project is dominated by flows and tuffs of rhyolitic-dacitic and in lesser amount of andesitic composition that may correspond to the upper portion of the Lower Volcanic series of the Sierra Madre Occidental Volcanic Complex. Mineralization seems to be closely associated to a rhyolitic-dacitic intrusive body domal in shape and consisting of a series of sub-vertical, brecciated, quartz-rich zones that outcrop within an area of 4 sq. km and have been trace for approximately 2 km. There are three main drilling targets identified inside the project area known as San Antonio, San Francisco and El Cantilito.
A drilling program consisting of 27 diamond holes have been programmed to evaluate the Guazapares project. The drilling program has been designed to:
-- Explore the high-grade ore-shoots down plunge and along strike already
identified within the Guazapares system
-- Test for potential zones of high-grade or economic mineralization
based on surface indications,
-- Gather information on the system regarding alteration patterns, metal
zoning, level of erosion and vector to the most prospective areas of
the system.
The drilling program commenced on the San Antonio area, where three diamond holes (GU-01, GU-02, and GU-03) have been drilled for 452.85 meters. All three holes intersected mineralization at a depth of approximately 100 meters. Surface and underground sampling from the San Antonio adit indicate the mineralization to extend from surface to a depth of at least 135 meters with a true width varying from 1.2 meters to 12 meters in thickness. The mineralized structure has a strike length of 800 meters and is open to the northwest and southeast as well as to depth, highlighting the potential for high grade gold mineralization along strike and also beneath covered areas.
The holes GU-01, GU-02, and GU-03 have been focused on extending zones of high-grade mineralization encountered in the San Antonio adit. To date we have received assay results for the three drill holes. Some of the highlights from this program are reported below including intervals which are reported here as drill hole intercepts.
-- Drill hole GU-01
-- 3.87 meters @ 2.072 g/t Au and 22.66 g/t Ag (2.48 g/t Au Eq)
including 1.00 meter @ 4.83 g/t Au
-- 1.97 meters @ 1.93 g/t Au (2.12 g/t Au Eq)
-- Drill hole GU-02
-- 1.35 meters @ 2.54 g/t Au
-- Drill hole GU-03
-- 1.50 meters @ 3.17 g/t Au and 42.6 g/t Ag
Encino Gordo -- The Encino Gordo concessions, also located in the state of Chihuahua, will be explored by the Company concurrent with the exploration for the Guazaparez property. Like Cieneguita and Guazaparez, the Encino Gordo property is situated in an old mining district with a significant production history. A report was commissioned in 1996 to evaluate the results of a geological and geochemical exploration program on the Encino Gordo zone. Subsequent work revealed results that were judged worthy of a second phase of exploration. In September 2005, a multimillion-ounce gold and silver deposit was discovered on a property approximately five kilometres away from the Company's Encino Gordo property. Drilling results from this property, owned by Palmarejo Gold Corporation, have returned an inferred resource of 20 million tonnes grading 4.8 grams per tonne gold equivalent, consisting of 1.1 million ounces of gold and 126 million ounces of silver (3.1 million ounces gold equivalent).
The Company's surface sampling has indicated the presence of strong mineralized structures, including gold and silver anomalies -- several gold-copper anomalous areas were also identified. The property indicates structures similar to the successful Palmarejo deposit, which has encouraged the Company to hasten its exploration program of the structures in which anomalous values have been obtained.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. Forward looking statements in this press release include our belief that our properties have the potential for mineable reserves and that we will be able to put these properties into production. It also includes our belief that we can re-open the Cieneguita mine and produce 1,500 ounces of gold per month at a cost of $300 pr ounce. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward looking statements.
Corporate Headquarters Investment Information
Mexoro Minerals Ltd. J.A. Michie, Managing Director
609 Granville Street, Suite 880 G.M. Capital Partners, Ltd
Vancouver, B.C. V7Y 1G5 Usteristrasse19, CH-8023
Telephone: 800-661-7830 Zurich, Switzerland
Fax: 888-639-4097 Tel: +41.44.226.5000
Tel: (800) 647-9877
Fax: +41.44.226.5009
Email: jam@gmcapital.com
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