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The Penasco Quemado project totals 20,000 hectares located in north-central Sonora, Mexico. Three areas of focus contain disseminated silver mineralization, most importantly mineralized breccia zones which make up priority targets. Silvermex completed a phase three drill program in early 2008 which resulted in an updated NI 43-101 compliant mineral resource for Penasco Quemado. Additionally, initial metallurgical testing produced silver recoveries of 78%.
The mineral resource estimate is based on a total of 9,847 meters of core and reverse circulation drilling from 107 holes completed by both Silvermex and previous operators. The 139 square mile (36,000 hectare) property is located in the north-central portion of the state of Sonora, Mexico approximately 70 kilometers (km) southwest of the Mexico-Arizona border. The Peñasco Quemado deposit consists of silver with minor gold and copper in structurally-controlled fissure fillings hosted within granite and disseminated throughout a sedimentary breccias unit. The near surface and oxidized nature of the mineralization suggest the deposit would have a low strip ratio and be amenable to low cost, bulk tonnage, open pit mining methods.
Management is confident that future exploration programs will deliver additional quality silver resources. An update to the technical report will be posted when received by Micon International.
The mineral resource estimate is as follows:
Category |
Tonnes |
Ag (g/t) |
Contained Ag (oz) |
Measured (M) |
722,658 |
111.6 |
2,591,752 |
Indicated (I) |
2,352,174 |
98.8 |
7,468,166 |
Total M&I |
3,074,832 |
101.8 |
10,059,918 |
Inferred: |
597,045 |
71.2 |
1,366,749 |
Technical Report
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