La Guitarra
Overview
La Guitarra, located in the Temascaltepec Mining District, is a silver producing mine with modern production dating to the early 1990s. The whole district, which has seen mining activity since the 1550s, offers exceptional production growth opportunities through modern day development. Management is currently building models to confirm past exploration results and to develop a production growth strategy that will create value by driving sustainable production from the district.
Location
La Guitarra Mine is located in the Temascaltepec Mining District in the State of Mexico, approximately 130km south west from Mexico City. The total 100% owned land position covers 397 square kilometers (km) and over 15 km of strike length. Silvermex controls the whole known extent of the Temascaltepec District.
This 39,714 hectare district is a highly prospective mining district with the following main areas of interest: La Guitarra, San Rafael, Mina de Agua/Santa Ana, Rincon, Nazareno, and Coloso. La Guitarra is the centre of current production and is directly adjacent to the mill site.
History
Mining in the Temascaltepec District dates to pre-Columbian times, and the history of European mining dates to 1555 when Spanish miners began exploiting mineralized vein outcrops at surface. Early miners were limited by the technology of the day and were only able to exploit small sections of very high-grade veins at or near surface.
Historical records show that from 1779-1783 up to 10% of the total mine output of Mexico came from the silver mines of Temascaltepec. The principal mines of the period in the Mina de Agua area included Quebradillas, El Zipotle, Santa Ana and Magdalena/Santa Geurtudis. Mining throughout the District continued until 1810 when all mining in Mexico ceased during the Mexican War of Independence.
After 1820, the political & financial climate permitted small scale mining to return to Temascaltepec, but the District never regained its past glory. The only notable post independence mining in the District prior to the construction of La Guitarra Mine in 1992 was the El Rincon Mine (in the San Simon area), which was operated by American Rincon Mining Company from 1910 until the late 1930s. Records indicate that over the life of El Rincon, the mine was the 3rd largest producing silver mine in Mexico.
Current Operations
The La Guitarra Mine presently consists of two underground operation centers and a flotation mill with a proven capacity of 320 tonnes per day ("tpd"). Silvermex is currently reassessing all formerly compiled geological and resource data, from which a new comprehensive database will be developed. From this extensive information the company plans to develop a new resource model that focuses on long term production growth opportunities.
During 2011 extensive redevelopment programs were conducted with the objective of reaching operational capacity of the mill. Having achieved that goal in Q32011, the focus in 2012 will be to identify and delineate new mining areas and potentially expand production beyond the current capacity. Ongoing programs include development to access known ore blocks, and the delineation and development of new ore bodies to justify expansion of the mill. The district offers incredible potential for growth. With numerous past producing mines on the property as well as newly identified structures, the district has the potential to continue delivering sustainable growth for the foreseeable future.
Resource and Reserve Estimates
The existing La Guitarra NI 43-101 resource estimate and resulting report were prepared by previous management and external third party sources. Between 2006 and 2009, over 86,000 m of exploration and infill drilling were completed at La Guitarra and over 10,000 channel samples were collected. Silvermex has an extensive review process underway to compile and analyze all past exploration results and available data into a comprehensive new resource model. This will assist the company to gain a better understanding of the existing reserves and resources.
Production
Historic commercial production dates from the early 1990's. Between 1993 and 2003, previous operators produced averages of 277.5 g/t Ag and 3.75 g/t Au, with production rates averaging 230 tpd. Production rates dropped off between 2004 and mine shut down in 2008, primarily due to lack of mine development. Through Silvermex's application of operational efficiencies over the course of 2011, optimal output levels were achieved in Q3, ahead of schedule. At the current rate of 320 tpd it is expected that the La Guitarra Mine will produce approximately 800,000 oz of silver equivalent per year.
Exploration
Based on historic geological data, it is estimated that only 10% of the Temascaltepec Mining District has been drill tested. Since 2006, over 85,000 metres of core and reverse circulation drilling was completed by the previous operator, in addition to drilling completed by other former operators. Silvermex is currently compiling all information and models into one comprehensive data set on which to concentrate prioritization of focused exploration and development.
Surface drilling in 2011 focused on the Coloso/Nazareno area, located approximately 3 to 5 km to the northwest of the La Guitarra Mine. The objective of the drill program was to further test the known Jessica and Nazareno structures in addition to other structures in the area, including Joya Larga, Comales and Coloso. For details on drill results to date visit the News Archive
Ag-Au mineralization is the product of a large low-sulfidation hydrothermal system. Ore grade mineralization is structurally controlled, and varies in size from narrow high-grade veins to bulk tonnage zones ranging up to 70m in width. The scale and size of this hydrothermal system is what created the tremendous economic potential of the Temascaltepec Mining District. The core of the district is a mineralized belt over 15km long and at least 4km wide, containing hundreds of documented veins. Host rocks range in age from Mesozoic Schist and Slates to Tertiary volcanics and intrusives.
In some areas, the rock containing the Ag-Au veins has been covered by younger basalt flows. However, La Guitarra and Santa Ana veins have been successfully drill-tested under these basalts.
Temascaltepec Mining District
La Guitarra, located in the Temascaltepec Mining District, is a silver producing mine with modern production dating to the early 1990s. The whole district, which has seen mining activity since the 1550s, offers exceptional production growth opportunities through modern day development. Management is currently building models to confirm past exploration results and to develop a production growth strategy that will create value by driving sustainable production from the district.
Location
La Guitarra Mine is located in the Temascaltepec Mining District in the State of Mexico, approximately 130km south west from Mexico City. The total 100% owned land position covers 397 square kilometers (km) and over 15 km of strike length. Silvermex controls the whole known extent of the Temascaltepec District.
This 39,714 hectare district is a highly prospective mining district with the following main areas of interest: La Guitarra, San Rafael, Mina de Agua/Santa Ana, Rincon, Nazareno, and Coloso. La Guitarra is the centre of current production and is directly adjacent to the mill site.
History
Mining in the Temascaltepec District dates to pre-Columbian times, and the history of European mining dates to 1555 when Spanish miners began exploiting mineralized vein outcrops at surface. Early miners were limited by the technology of the day and were only able to exploit small sections of very high-grade veins at or near surface.
Historical records show that from 1779-1783 up to 10% of the total mine output of Mexico came from the silver mines of Temascaltepec. The principal mines of the period in the Mina de Agua area included Quebradillas, El Zipotle, Santa Ana and Magdalena/Santa Geurtudis. Mining throughout the District continued until 1810 when all mining in Mexico ceased during the Mexican War of Independence.
After 1820, the political & financial climate permitted small scale mining to return to Temascaltepec, but the District never regained its past glory. The only notable post independence mining in the District prior to the construction of La Guitarra Mine in 1992 was the El Rincon Mine (in the San Simon area), which was operated by American Rincon Mining Company from 1910 until the late 1930s. Records indicate that over the life of El Rincon, the mine was the 3rd largest producing silver mine in Mexico.
 Partial view of the high-grade Rincón Mine - 1930s |
Current Operations
The La Guitarra Mine presently consists of two underground operation centers and a flotation mill with a proven capacity of 320 tonnes per day ("tpd"). Silvermex is currently reassessing all formerly compiled geological and resource data, from which a new comprehensive database will be developed. From this extensive information the company plans to develop a new resource model that focuses on long term production growth opportunities.
During 2011 extensive redevelopment programs were conducted with the objective of reaching operational capacity of the mill. Having achieved that goal in Q32011, the focus in 2012 will be to identify and delineate new mining areas and potentially expand production beyond the current capacity. Ongoing programs include development to access known ore blocks, and the delineation and development of new ore bodies to justify expansion of the mill. The district offers incredible potential for growth. With numerous past producing mines on the property as well as newly identified structures, the district has the potential to continue delivering sustainable growth for the foreseeable future.
Resource and Reserve Estimates
The existing La Guitarra NI 43-101 resource estimate and resulting report were prepared by previous management and external third party sources. Between 2006 and 2009, over 86,000 m of exploration and infill drilling were completed at La Guitarra and over 10,000 channel samples were collected. Silvermex has an extensive review process underway to compile and analyze all past exploration results and available data into a comprehensive new resource model. This will assist the company to gain a better understanding of the existing reserves and resources.
Production
Historic commercial production dates from the early 1990's. Between 1993 and 2003, previous operators produced averages of 277.5 g/t Ag and 3.75 g/t Au, with production rates averaging 230 tpd. Production rates dropped off between 2004 and mine shut down in 2008, primarily due to lack of mine development. Through Silvermex's application of operational efficiencies over the course of 2011, optimal output levels were achieved in Q3, ahead of schedule. At the current rate of 320 tpd it is expected that the La Guitarra Mine will produce approximately 800,000 oz of silver equivalent per year.
Exploration
Based on historic geological data, it is estimated that only 10% of the Temascaltepec Mining District has been drill tested. Since 2006, over 85,000 metres of core and reverse circulation drilling was completed by the previous operator, in addition to drilling completed by other former operators. Silvermex is currently compiling all information and models into one comprehensive data set on which to concentrate prioritization of focused exploration and development.
Surface drilling in 2011 focused on the Coloso/Nazareno area, located approximately 3 to 5 km to the northwest of the La Guitarra Mine. The objective of the drill program was to further test the known Jessica and Nazareno structures in addition to other structures in the area, including Joya Larga, Comales and Coloso. For details on drill results to date visit the News Archive
Ag-Au mineralization is the product of a large low-sulfidation hydrothermal system. Ore grade mineralization is structurally controlled, and varies in size from narrow high-grade veins to bulk tonnage zones ranging up to 70m in width. The scale and size of this hydrothermal system is what created the tremendous economic potential of the Temascaltepec Mining District. The core of the district is a mineralized belt over 15km long and at least 4km wide, containing hundreds of documented veins. Host rocks range in age from Mesozoic Schist and Slates to Tertiary volcanics and intrusives.
In some areas, the rock containing the Ag-Au veins has been covered by younger basalt flows. However, La Guitarra and Santa Ana veins have been successfully drill-tested under these basalts.
Temascaltepec Mining District
