Durango State, México
PEDRO
Durango State, México
Outcropping Epithermal Gold Targets with Potential for Both Bulk Mineable and Bonanza-Grade Vein Deposits + Investigating Potential Carlin-Style Gold Mineralization
PEDRO GOLD PROJECT HIGHLIGHTS
- Located in Durango, a mining friendly state in north-central México
- Outcropping epithermal gold targets with potential for both bulk mineable and bonanza-grade vein deposits
- 4,000 metres (“m”) by 1,000 m gold in soil anomaly coincident with gold-bearing, silica-rich breccia outcrops
- Additional gold (“Au”) targets identified beneath post-mineral cover by 2020 geochemical survey
- Historical reverse circulation and core drilling by Newmont in 2014 that confirmed the presence of gold
- In 2019, a 70 line-kilometre IP survey identified vertical, feeder vein targets that are not yet drill tested
- Nine drill holes currently planned with permits established for up to 25 drill holes
- Mineral concessions cover ~1,750 hectares (“ha”; 4,324 acres)
- Mineral concessions cover private ranch lands
- Good access to the project area, ~80 kilometres (“km”; 50 miles) west-northwest of the city of Torreón
- Local infrastructure available in the nearby town of Mapimí
DOES PEDRO HOST “CARLIN-STYLE” GOLD MINERALIZATION?
“Carlin-type deposits are some of the largest hydrothermal gold deposits in the world. Not only does this first phase of drilling confirm the wide-spread presence of stratabound gold on the Pedro property, it also provides considerable support for the discovery of Carlin-Style gold mineralization, a very rare occurrence outside of Nevada.”
Dale Wallster, CEO, Southern Empire Resources Corp.
DRILLING AT PEDRO
- Southern Empire completed 856.3 metres of core drilling at Commander’s Pedro Gold project in Durango, Mexico
- Top results include 15.23 m @.577 grams/tonne gold (g/t Au) in hole P22-03 (core length)
- Trace element association, alteration and regional setting indicate a possible “Carlin-like” mineral system
“CARLIN-STYLE” GOLD DEPOSIT CRITERIA* OBSERVED AT PEDRO GOLD PROJECT
- Extensional tectonic setting expressed by “Basin and Range” physiography/topography
- “Dirty carbonates” hosting gold mineralization
- Replacement and breccia mineralization with structural and stratigraphic ore controls
- A lack of veins hosting gold mineralization
- Au-Tl-As-Hg-Sb-(Te) geochemical signature
- Hydrothermal alteration characterized by dissolution and silicification of carbonate and the formation of clay minerals (argillization) of silicates
- Gold is typically “no-see-um”, “invisible” or microscopic, followed by late orpiment, realgar and stibnite
- Low to no silver (“Ag”) values, typically with Ag/Au ratio < 1 and typically, low base metal contents
*Criteria adapted from: J.L. Muntean & J.S. Cline, Introduction: Diversity of Carlin-Style Gold Deposits; 2018 Society of Economic Geologists, v20, pp 1-5
Additional “Carlin-Style” Gold Deposit Criteria* Requiring Further Study:
- Mineral paragenesis characterized by auriferous, arsenic-rich pyrite formed by sulphidation during replacement (currently being investigated by Southern Empire)
- Gold in the form Au+1 in pyrite (currently being investigated by Southern Empire)
- Temperatures and depth of formation (~180 – 240oC; < 2-3 km)
- Lack of a clear relationship with upper crustal intrusions, as exemplified by a lack of mineralogical or elemental zoning at scales of <5 to 10 km laterally and <2 km vertically
WHY DO WE LIKE IT?
“Although the evidence for the discovery of a Carlin-style deposit is mounting, we don’t forget that Pedro is situated in a prolific mineral belt also well known for epithermal vein deposits, skarns and Carbonate Replacement Deposits (“CRD”), including the historical Ojuela Mine, one of the original mines of Industrias Peñoles, which produced an estimated 0.6 million ounces of gold in addition to 90 million ounces of silver and 1.8 billion pounds of lead through its 350 year production history.”
David Tupper, VP of Exploration, Southern Empire Resources Corp.
Geology and Exploration History of the Pedro Gold Project Area
The Pedro Gold Project covers prospective geology including the HP Breccia, an epithermal gold system discovered in 2012 by regional grass roots prospecting that was directly supervised by David Tupper, P.Geo., now Southern Empire’s Vice President of Exploration.
The HP Breccia occurs throughout a 4,000 m by 1,000 m area outlined at surface by a combined gold (>10 ppb) and arsenic (> 100 ppm) soil anomaly coincident with extensive outcrops of Au-bearing, hematite-stained, silica-rich hydrothermal breccias hosted by conglomerates of the Tertiary-age Ahuichila Formation (sandstone, tuffaceous sandstone and conglomerate). Selected surface grab samples from prominent silica-rich ridges (featuring angular chalcedony fragments and silicified sedimentary rocks within an angular, coarse breccia) returned up to 2.26 grams gold/tonne (“g Au/t”). Portions of the soil anomaly are underlain by older carbonate rocks of the Aurora and Cuesta Del Cura Formations where partially outlined soil geochemical anomalies indicate potential for additional gold zones.
A drill program comprising 11 mostly vertical drill holes totalling 1,744 m (5,722 feet), of which two holes (409 m) were cored and the remaining drilled by reverse circulation (“RC”), was completed in 2014 by Newmont de Mexico, S.A. de C.V (“Newmont”), a wholly owned subsidiary of Newmont Mining Corporation. This drill program was specifically designed to test for Carlin-style gold mineralization associated with the Caracol Formation (interbedded to interlaminated sandstone, shale, siltstone and minor limestone), which underlies the Ahuichila Formation conglomerates and did not target the outcropping epithermal breccias. Newmont’s drilling did, however, encounter gold within epithermal breccias including in hole LP-013-R which returned 10.5 metres grading 0.51 g Au/t from oxidized, silicified conglomerate of the Ahuichila formation.
Newmont’s 2014 drill results (see Table 1; source: Bearing Lithium Corp. News Release, July 3, 2014) reflect the results from surface sampling and show that gold is mostly associated with the Ahuichila Formation basal conglomerate with no Au values detected within Newmont’s primary drill target, the underlying Caracol Formation. No source or feeder structure for the Ahuichila conglomerate stratabound gold has been identified by drilling and such systems will be targeted by future Southern Empire drill programs.
Table 1: Significant Historical Newmont Drill Hole Intersections
(source: Bearing Lithium Corp. News Release, July 3, 2014 – Suffix R- reverse circulation, D- core)
| Drill Hole | From (m) | To (m) | Length (m) | Au (g Au/t) | |
| LP-007-R | 4.5 | 16.5 | 12.00 | 0.23 | |
| LP-008-R | 33.0 | 37.5 | 4.50 | 0.35 | |
| LP-010-R | 31.5 | 37.5 | 6.00 | 0.21 | |
| LP-011-D | 4.0 | 9.6 | 5.55 | 0.59 | |
| LP-013-R | 51.0 | 61.5 | 10.50 | 0.51 | |
| LP-017-R | 144.0 | 201.0 | 57.00 | 0.07 |
Newmont also completed a wide-spaced Controlled-source Audio-frequency Magnetotellurics (“CSAMT”) ground-based geophysical survey over the HP Breccia area. CSAMT is a geophysical system capable of estimating bedrock resistivity at depth and which can potentially detect silicified structures or horizons.
In late 2019, Commander followed up on the CSAMT survey with a 70 line-kilometre Induced Polarization (“IP”) survey outlining targets, which show elevated resistivity with low to moderate chargeability, that correlate with known, surface-exposed Au zones found along the basal contact of the Ahuichila Formation conglomerate. The IP also outlined other zones having a distinguished, deep vertical expression reflecting possible structures that are interpreted to be feeder veins to the surface Au zones. See Figures 1 and 2 below. The IP survey also outlined targets beneath post-mineral cover, suggesting a much larger footprint to the known Au mineralized system.
Location, Access and Infrastructure
The Pedro Gold Project mineral concessions cover private lands and consequently avoid issues with Ejido’s (communal agricultural lands). The Pedro property is in the Municipality of Mapimí in the Mexican state of Durango, approximately 80 km (50 miles) west-northwest of the city of Torreón (metropolitan area population ~1,500,000).
Access to the Pedro Gold Project is by paved Mexican Federal Highway 30 and secondary gravel roads ~30 km (18.6 miles) west of the town of Mapimí. Given the arid local climate and minimal annual rainfall, these gravel roads remain in good condition year-round.
Mapimí (population ~5,700) can provide all necessary basic infrastructure including electricity, water, housing, office and secure core storage facilities and internet communications. The town, originally named Santiago de Mapimí, was founded on July 25, 1598 by Agustin de Espinoza, a Jesuit priest, and Captain Antón de Zapata, a soldier. The historical La Ojuela high-grade silver mine is located just southeast of Mapimí and, in 1887 was the first operating mine of Compañía Minera de Peñoles, now Industrias Peñoles, S.A.B. de C.V., one of the largest Mexican mining companies.
PEDRO IN PHOTOS
Pedro Project – Performance Summary and Significant Events:
Entered into an option agreement with Commander Resources Ltd. and its wholly-owned subsidiary, Minera BRG S.A. de C.V. on July 23, 2021, allowing Southern Empire to acquire a 100% beneficial interest in the Pedro Gold Project in northeastern Durango State, México. This agreement was accepted for filing by the Exchange on February 3, 2022.
Contracted Terraquest Ltd. to complete a 384 line-kilometre airborne magnetic and radiometric geophysical survey of the Pedro Gold Project in December 2021.
In December 2021, entered into an option agreement with Riverside Resources Inc. to acquire a 100% interest in the VLM Project, located in northwestern México in exchange for cash payments totalling $137,500 and issuing a total of 1,625,000 common shares over a period of two years from
January 12, 2022, two days following the filing approval date for the option agreement by the Exchange.
Completed six core drill holes totalling 856.3 metres at the Pedro Gold Project in January and February of 2022.
For the Pedro Gold Project, Condor Consulting, Inc. of Denver, Colorado compiled and analyzed all the geophysical data available (2019 Direct Current Induced Polarization (DCIP) and 2021 airborne magnetic, radiometric and VLF surveys), providing finished products in June 2022.
To assist in the assessment and understanding of the Pedro gold deposit, on April 27, 2022, Southern Empire contracted LISA CAN Analytical Solutions Inc. of Saskatoon, Saskatchewan, in collaboration with Western University, to objectively determine similarities and differences between samples from the Pedro project and Carlin-type deposits by utilizing X-Ray Fluorescence (“XRF”) and Electron Probe Micro Analysis (“EPMA”) to analyze gold-mineralized Pedro drill core (Sample643048, P22-02: 46.00 – 47.04m).