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PEDRO GOLD PROJECT

 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
Pedro Gold Project
Pedro Gold Project Property View
Pedro Gold Project Property View
Core drilling on the Pedro Gold Project
Core drilling on the Pedro Gold Project
"Dirty Limestone" with orpiment mineralization
"Dirty Limestone" with orpiment mineralization
IMG-20220129-WA0001
Core drilling on the Pedro Gold Project
Core drilling on the Pedro Gold Project
"Dirty limestone" - brecciated heterolithic limestone conglomerate with calcite matrix
"Dirty limestone" - brecciated heterolithic limestone conglomerate with calcite matrix
Orpiment mineralization in DDH-P22-02 at ~46.5 m
Orpiment mineralization in DDH-P22-02 at ~46.5 m
Geologist Humberto Pacheco trying hard to not lick the core.jpeg
Geologist Humberto Pacheco trying hard to not lick the core.jpeg
Disseminated crystalline orpiment in DDH-P22-02 - core diameter 6.35 cm
Disseminated crystalline orpiment in DDH-P22-02 - core diameter 6.35 cm
Blebby, breccia matrix orpiment with crosscutting calcite veinlet - core diameter 6.35 cm
Blebby, breccia matrix orpiment with crosscutting calcite veinlet - core diameter 6.35 cm
Orpiment mineralization in brecciated, moderatley silicified limestone conglomerate in DDH-P22-02
Orpiment mineralization in brecciated, moderatley silicified limestone conglomerate in DDH-P22-02
Colliform calcite/orpiment/realgar vein mineralization cutting Caracol formation in DDH-P22-03
Colliform calcite/orpiment/realgar vein mineralization cutting Caracol formation in DDH-P22-03
Core drilling on the Pedro Gold Project
Core drilling on the Pedro Gold Project
Core drilling on the Pedro Gold Project
Core drilling on the Pedro Gold Project
Core drilling on the Pedro Gold Project
Core drilling on the Pedro Gold Project
Tupper and HP having lunch in Paris (or Gomez Palacio as the case might be)
Tupper and HP having lunch in Paris (or Gomez Palacio as the case might be)
"Dirty Limestone" with orpiment mineralization
"Dirty Limestone" with orpiment mineralization
Disseminated orpiment/realgar (?) in DDH-P22-02
Disseminated orpiment/realgar (?) in DDH-P22-02
"Dirty limestone" - brecciated heterolithic limestone conglomerate with calcite matrix
"Dirty limestone" - brecciated heterolithic limestone conglomerate with calcite matrix
Heterolithic limestone dominated conglomerate
Heterolithic limestone dominated conglomerate
Disseminated realgar/orpiment mineralization on fracture (?)
Disseminated realgar/orpiment mineralization on fracture (?)
David Tupper, P.Geo. VP Exploration
David Tupper, P.Geo. VP Exploration
Orpiment in DDH-P122-10
Orpiment in DDH-P122-10
Sunrise in Mapimi
Sunrise in Mapimi
Mapimi
Mapimi
About 1,000 lbs of Pedro drill core samples being delivered to the lab
About 1,000 lbs of Pedro drill core samples being delivered to the lab
Drill site for holes P22-02 and P22-03.
Drill site for holes P22-02 and P22-03.
Pedro Gold Project - West Vein
Pedro Gold Project - West Vein
Pedro Gold Project - HP Breccia - North End
Pedro Gold Project - HP Breccia - North End
Pedro Gold Project - East Vein
Pedro Gold Project - East Vein
Pedro Gold Project - West Vein
Pedro Gold Project - West Vein
HP Breccia - Silicified Hydrothermal Breccia
HP Breccia - Silicified Hydrothermal Breccia
HP Breccia - Branded Chalcedony
HP Breccia - Branded Chalcedony
HP Breccia - Silicified Hydrothermal Breccia
HP Breccia - Silicified Hydrothermal Breccia
HP Breccia - Incipient Silicification (Hermatite Stained)
HP Breccia - Incipient Silicification (Hermatite Stained)
Pedro Gold Project - HP Breccia
Pedro Gold Project - HP Breccia
Orpiment mineralization in weakly silicified, brecciated limestone conglomerate
Orpiment mineralization in weakly silicified, brecciated limestone conglomerate
Intersecting breccia dykes in limestone conglomerate - DDH-P22-01
Intersecting breccia dykes in limestone conglomerate - DDH-P22-01
Limestone conglomerate; DDH-P22-01
Limestone conglomerate; DDH-P22-01
Pedro Gold Project

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.

Dale Wallster

RECENT DEVELOPMENT

  • 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.

MORE ABOUT THE PROJECT

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

Core drilling on the Pedro Gold Project
"Dirty Limestone" with orpiment mineralization
Pedro Gold Project Property View
Geologist Humberto Pacheco trying hard to not lick the core.jpeg
Colliform calcite/orpiment/realgar vein mineralization cutting Caracol formation in DDH-P22-03
Blebby, breccia matrix orpiment with crosscutting calcite veinlet - core diameter 6.35 cm
Disseminated crystalline orpiment in DDH-P22-02 - core diameter 6.35 cm
Disseminated realgar/orpiment mineralization on fracture (?)
Heterolithic limestone dominated conglomerate
"Dirty limestone" - brecciated heterolithic limestone conglomerate with calcite matrix
Disseminated orpiment/realgar (?) in DDH-P22-02
Core drilling on the Pedro Gold Project
HP Breccia at Zona Oeste - Target for DDH-P22-01
Vuggy chalcedony veinlet cutting overlying volcanic breccia
Core drilling on the Pedro Gold Project
Pedro Gold Project - West Vein
Pedro Gold Project - HP Breccia - North End
Pedro Gold Project - West Vein
Pedro Gold Project - East Vein
HP Breccia - Incipient Silicification (Hermatite Stained)
HP Breccia - Silicified Hydrothermal Breccia
HP Breccia - Branded Chalcedony
HP Breccia - Silicified Hydrothermal Breccia

PEDRO GOLD: Induced polarization (IP) Ground Geophysical Survey

Resistivity
Chargeability

PEDRO GOLD: SOIL GEOCHEMISTRY

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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