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CENTAURO GOLD PROJECT

 Chihuahua State, México 

CENTAURO

Chihuahua State, México

Significant Potential to Host “Carlin-Style” Mineralization

Centauro | Chihuahua | Mexico
Centauro Gold Project
Centauro Gold Project
Tertiary-age, silicified limestone conglomerate breccia with arsenopyrite, pyrite, realgar and orpiment mineralization located on the Centauro Gold Project.
Examining Centauro Core
Centauro Gold Project
Tertiary-age, silicified limestone conglomerate breccia with arsenopyrite, pyrite, realgar and orpiment mineralization located on the Centauro Gold Project.
Tertiary-age, silicified limestone conglomerate breccia with arsenopyrite, pyrite, realgar and orpiment mineralization located on the Centauro Gold Project.
Figures 2 & 3: Oblique view of the Centauro Property from the northwest showing: Satellite image (March 2007) of interpreted silica alteration (PhotoSat, December 2022) Induced Polarization (IP) apparent chargeability at true depth 260m, highlighting a potential drill target on the north area (Geofísica TMC, S.A. de C.V., 2013)
Photos 3: Core interval from drill hole CEN08-10 with intense argillic alteration (kaolinite) averaging 232 ppb Au, 5.5 ppm Ag, 1,328 ppm As, 102 ppm Hg, 50.8 ppm Sb & 4.4 ppm Mo over 6.7 m starting at 88.4 m (weighted average of samples 7859 through 7862).
Centauro Gold Project
Centauro | Chihuahua | Mexico
Figures 4: Centauro Property Map showing Southern Empire’s two newly staked claims, Centauro 2 and Tauros

CENTAURO GOLD PROJECT HIGHLIGHTS

The Centauro property covers a total of 4,432 ha (10,951 acres).  It has been significantly expanded by staking two new claims, Centauro 2 and Tauros, that surround the original 600-ha claim block.

The property is a near analogue to Southern Empire’s Pedro Gold Project, located in the Mapimí area of Durango State. Centauro’s significant potential to host “Carlin-style” and/or epithermal precious metal mineralization is exhibited by:

  • extensive brecciation, silicification and argillization of the Tertiary-age Ahuichila Formation limestone-dominated conglomerate unit over an area of approximately 2.5 by 1.5 km
  • a gold (“Au”), arsenic (“As”), antimony (“Sb”), mercury (“Hg”), thallium, silver, barium soil geochemical signature associated with a silicified mesa “cap” covering 2.5 km along the strike of the main zone
  • outcrops containing Carlin-style indicator minerals including arsenopyrite, realgar, orpiment and stibnite, in a black, silicified limestone-dominated conglomerate
  • low to non-anomalous base metal values throughout the property

The Tauros and Centauro 2 claims cover areas of silica and kaolinite alteration, and lesser alunite and buddingtonite alteration, as recently identified and mapped (by analysis of Worldview-3 hyperspectral data) along trend and to both the northwest and the northeast of the original Centauro claim block. These suites of probable alteration mineralization are often spatially associated with “Carlin-style” and/or low sulphidation epithermal gold mineralization observed at Centauro to date.

Photos 1 & 2: Tertiary-age, silicified limestone conglomerate breccia with arsenopyrite, pyrite, realgar and orpiment mineralization located on the Centauro Gold Project.

WHY DO WE THINK CENTAURO COULD HOST “CARLIN-STYLE” GOLD MINERALIZATION? 

“The acquisition of Centauro directly ties into our thesis that certain geological terrains of northcentral México are highly prospective to host “Carlin-style” and/or low sulphidation epithermal gold deposits. The many Carlin-style geological features we see at both Centauro and Pedro strongly support this concept,” 

David Tupper, VP of Exploration, Southern Empire Resources Corp.

Centauro Property Location

The Centauro Gold Project currently comprises two core mineral claims and two additional surrounding claims, covering a total of 4,432 ha (10,951 acres) located in southeastern Chihuahua State immediately north of the Durango State border and approximately 70 km south of the city of Jiménez.

The highly anomalous Hg, As, Sb values, low base metal values coupled with the anomalous Au and Ag, suggest that the level of more significant precious metals deposition remains at depth below the currently exposed part of the system.

Southern Empire - Mexico - Properties

Figures 2 & 3: Oblique view of the Centauro Property from the northwest showing:

  • Satellite image (March 2007) of interpreted silica alteration (PhotoSat, December 2022)
  • Induced Polarization (IP) apparent chargeability at true depth 260m, highlighting a potential drill target on the north area (Geofísica TMC, S.A. de C.V., 2013)

Work Programs Initiated

Accurate alteration mineral maps are an essential guide to successful exploration when working on hydrothermal-associated mineral deposit systems. For Centauro, Southern Empire, contracted PhotoSat Information Ltd. (“PhotoSat”) to provide maps of alteration mineral suites typically associated with epithermal precious metal deposits, using their proprietary processing methods for 16 band WorldView-3 and high-resolution ASTER satellite optical spectral data. Results of the PhotoSat studies show significant trends highlighting argillic, sericite, and chlorite alteration. The strong silica cap present at Centauro is highlighted by the ASTER silica plot shown in Figure 2.

Southern Empire has completed the collection of an initial 396 soil samples at 50-metre (“m”) spacings along east-west lines, spaced 100 to 200m apart, that infill and expand upon a 2008 geochemical survey on lines having 400 and 600m spacing that covered a zone of prospective alteration and mineralization over four km strike length. Samples collected will be submitted to ALS Laboratories Ltd. in Chihuahua for analyses.

MORE ABOUT THE PROJECT

Exploration History of the Centauro Gold Property

The primary area of exploration interest on the Centauro property is a 2.5 by 1.5 km corridor that was subject to preliminary, low-density investigations completed by previous operators Silver Spruce Resources Inc. (2007 to 2009) and Mundoro Capital Inc. (2012 and 2013). Their past work included:

  • Geological mapping and prospecting
  • Surface alteration mapping using TerraSpec spectrometer mineral analysis
  • Collection of 211 soil samples at 50m centres on six widely-spaced (300m to 700m), 060o azimuth lines with subsequent analysis by multielement Induced Coupled Plasma (“ICP”) techniques
  • A 73.0 line-km ground magnetic geophysical survey over twenty-four 200m spaced lines
  • 6 line-kilometres (line-km) of Induced Polarisation/Resistivity (“IP”) geophysical surveys over four 500 to 700m spaced lines by Geofísica TMC, S.A. de C.V. (see Figure 3)
  • Completion of 27 NQ core drill holes totaling 5,824.5m on 200m to 700m spaced section lines; 100% of this drill core was split, sampled and analyzed for Au and indicator elements by ICP

Although based on a limited, widely spaced line density, the 2013 IP/Res survey work highlights a potential chargeability anomaly on the north end of the grid that occurs below the depth of the historical drilling and remains untested.

The 2008 and 2009 drilling completed by Silver Spruce Resources Inc. was at very wide drill hole spacings (200 to 400 metres) and outlined significant areas of anomalous gold mineralization within extensive zones of silica and argillic alteration, the latter exhibited in multiple drill holes including hole CEN08-10 (NAD27 (13R) 555443 mE / 2945041 mN); (please see Photo 3 & Table 1 following).

Photos 3: Core interval from drill hole CEN08-10 with intense argillic alteration (kaolinite) averaging 232 ppb Au, 5.5 ppm Ag, 1,328 ppm As, 102 ppm Hg, 50.8 ppm Sb & 4.4 ppm Mo over 6.7 m starting at 88.4 m (weighted average of samples 7859 through 7862).

TABLE 1: Centauro Property core drilling – 2008/2009 Composite Analyses
Hole From To Length Au (ppb) Ag (ppm) Hg (ppm) As (ppm) Sb (ppm) Mo (ppm)
CEN-08-07 9.0 59.0 50.0 284 2.4 100 565 66 19
incl. 55.2 57.2 2.0 4340 13.4 57 689 16 32
CEN-08-10 3.0 91.1 88.1 237 8.4 2718 1178 15 239
incl. 3.0 10.5 7.5 1922 62.8 2554 1358 1.3 486
CEN-09-15 12.0 82.9 70.9 145 6.5 21 1098 202 10
CEN-09-16A 36.0 148.4 112.4 125 7.5 20 968 124 8
CEN-09-27 9.0 43.4 34.4 232 5.7 23 1127 272 2

PLANNED EXPLORATION WORK AT CENTAURO

Southern Empire plans to undertake exploration work programs in 2023, including:

  • Relogging all drill core, which is now securely stored by the property vendor in Ciudad de Durango
  • Re-assaying some key drill core intervals to cross-check the reported results from the 2008/2009 analytical work, which shows no record of a Quality Control program
  • Hyperspectral imaging of key drill holes to assist in determining alteration
  • Completion of a higher-density IP survey
  • A core drilling program to 400 metre depth of penetration

KEY BUSINESS TERMS  OF THE PROPERTY OPTION AGREEMENT

A comprehensive Option Agreement regarding Southern Empire’s acquisition of Centauro property mineral rights has been entered into with the owner, a Mexican geologist, and registered with the General Bureau of Mining of México. Pursuant to this agreement, Southern Empire can earn a 100% interest in the Centauro property claims, subject to a 3% Net Smelter Return interest (“NSR”), by making cash payments totalling US $750,000, issuing 1,500,000 common shares of Southern Empire, and completing work commitments of US $800,000 over a 5-year period. Southern Empire has the right to a 2% buyback of the NSR for US $2 million. The Option Agreement is subject to approval by the TSX Venture Exchange. Dale Wallster, CEO of Southern Empire commented, “We are fortunate to have the option agreement relatively back-weighted with cash payments totaling US$595,000 and the issuance of 900,000 shares not occurring until years four and five.”

The surface rights covering the Centauro Gold Project area are privately held by local ranchers who have worked with the claim owner for more than 30 years. Southern Empire has initiated negotiations to secure surface access rights.

CENTAURO IN PHOTOS

Centauro | Chihuahua | Mexico

CONTACT SMP

Lubica Keighery

lubica@smp.gold
+1 778-889-5476

Southern Empire Resources Corp.

Suite 420 – 789 West Pender Street
Vancouver, B.C., Canada V6C 1H2

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