Guadalupe y Calvo Gold-Silver Project, Chihuahua. Five
mining titles totaling around 439.24 hectares in the old producing Guadalupe
y Calvo district located high in the Sierra Madre Occidental. Historic production at the Guadalupe Project has been estimated at 2-million ounces of gold and 28-million ounces of silver, grading 37 g/t gold and 870 g/t silver. Per the independent report, the inferred mineral resource at this project currently stands at more than 1.7 million gold-equivalent ounces (1-million ounces gold and 46-million ounces silver) from immediately accessible zones. The estimate does not address significant additional mineralized structures known to be present on the property, or the potential for large strike extensions of known high-grade zones.
It is expected that Mexgold will initiate aggressive exploration of the Guadalupe Project upon achieving publicly listed status, with a goal of achieving a gold-equivalent resource of 3-million to 5-million ounces at this property.
Mexgold annouces 10,000 metres drill program to expand and upgrade 1.78 million Oz. of gold-equivalent at Guadalupe Y Calveo gold/silver project.
Following Strong Initial High-Grade Results
Mexgold Resources Inc. announces that it is immediately expanding its
ongoing 10,000-metre drill program at the Guadalupe y Calvo Gold/Silver
Project, located in Mexico's Chihuahua state, to a more intensive
30,000-metre program. The Company is now moving a total of three drill rigs
onto the project, and these are expected to operate seven days a week around
the clock, starting within less than two weeks, under the expanded drill
program. The decision to expand and accelerate drilling follows the
publication of high-grade drill results on Jan. 13 from the initial ten-hole
program drilled at Guadalupe (see press release No. 1-2004). In this
program, seven out of ten wide-spaced drill holes bracketing the project
area returned significant gold/silver results. This included drill hole GC-6
grading 11,092 grams (11.09 kilograms, or 357 ounces) of silver per tonne
over two metres (6.5 feet). This interval was contained in a larger zone of
25.5 metres grading 1.16 grams per tonne gold and 961 grams per tonne silver
for a gold-equivalent grade of 15.9 grams per tonne. Other results included
gold-equivalent grades of up to 9.1 g/t over five metres, and 39.6 g/t over
one metre, for an average gold-equivalent grade of 21.4 g/t over intervals
averaging 3.3 metres at a +3.0 g/t cut-off.
Click below to view Guadalupe y Calvo Long Section:
http://www.mexgold.com/press_release/press_2/gyc_long_section.html
The longitudinal section of the Guadalupe Project shown above indicates
the location of the drill intercepts of the initial ten-hole program. The
company plans to begin intensive grid-drilling in the locations surrounding
hole GC-6 and other holes yielding positive results, to ascertain the width
and strike extent of the highly mineralized portions of this project. Past
mining at Guadalupe produced approximately 2-million ounces of gold and
28-million ounces of silver, at estimated production grades of 37 grams per
tonne gold and 870 grams per tonne silver. However, historical mining only
partly mined out the upper portions of the primary Rosario and Nankin
structures comprising this project, and also stopped at the water table
(200-250 metres). Mexgold believes that systematic exploration of these
zones over their complete vertical elevations of at least 500 metres,
including drilling for 200-metres or more below previous depth limits, can
be very rewarding. The company is targeting discovering up to 3.5-million
gold-equivalent ounces at Guadalupe through the intensive application
of modern exploration techniques to this project.
Press Release 15Jan04
Press Release 24Sep03
Gammon Lake website
Guadalupe y Calvo District, Chihuahua. Controls titles to a
number of concessions totaling 439.24 hectares. Acquisition by purchase of
100% of issued and outstanding shares of Mexgold Resources, a private company
in control of the mineral titles.
The Guadalupe Gold-Silver Project is located in Sierra Madre Occidental physiographic province, approximately 300 kilometers southwest of the city of Chihuahua and 200 kilometers west of the city of Hidalgo de Parral. The project is comprised of five mining titles
in which Mexgold Resources owns a 100% interest.
Beginning in late Cretaceous and continuing throughout the Tertiary, the Sierra Madre region was the site of intensive volcanic and intrusive activity. Volcanic stratigraphy in the Sierra Madre Occidental has been broken into two main groups consisting of the Lower Volcanic Group (LVG) and the Upper Volcanic Group (UVG). LVG rocks are the host to nearly all the major gold silver deposits found in the Sierra Madre to date. Within the Guadalupe Gold-Silver Project area an erosional window of LVG rock is exposed, surrounded by UVG rhyolitic flows and tuffs.
The main structural feature in the project area is the Rosario fault complex. The Rosario structure strikes N40W and dips 45 to 50
degrees to the west. Several east-west striking structures are present, including the Nankin, which dip approximately 30 to 35
degrees to the south. The Concordia and El Sol structures strike N60W, and dip steeply to the south.
Gold was "discovered" at the Guadalupe Gold-Silver Poject in October 1835. Production was sufficiently large that the Mexican government built a mint at Guadalupe y Calvo in 1844. Historic production has been estimated at 2,000,000 ounces gold and 28,000,000 ounces silver. Estimated production grade was 37 g/t gold and 870 g/t silver. Most of the historic production was from the Zorrilla and Pertenencia areas, comprising the northwestern two-thirds of the exposed portion of the Rosario breccia-vein structure. Later activities have focused on the southern San Francisco portion of the Rosario structure and the Nankin vein. Underground production from the Nankin started nearly 100 years after the main discovery.
Currently the Guadalupe Gold-Silver Project does not have a sufficient sampling density for the determination of a measured or indicated mineral resource. Much of the more recent exploration activities have focused solely on the San Francisco portion of the Rosario breccia-vein complex. Minimal work has been completed in historically more productive Zorrilla and Pertenencia areas. Data from several detailed exploration programs, both historic and modern have been used in order to assess the exploration potential of the Guadalupe Gold-Silver Project. Table 1-1 summarizes the inferred mineral resource, estimated by Pincock, Allen and Holt (October 2002), for the Rosario and Nankin Structures.
TABLE 1-1
Guadalupe y Calvo Gold-Silver Project
Guadalupe y Calvo Estimate of Inferred Mineral Resource
------------------------------------------------------------------------
Rosario Bulk Tonnage (at 75% of Available Tonnes)
------------------------------------------------------------------------
Tonnes Au g/t Au Ounces
Ag g/t Ag Ounces eAu Ounces
------------------------------------------------------------------------
10,700,000 1.6 566,000
96 33,100,000
1,080,000
------------------------------------------------------------------------
Rosario Underground (at 33% of Available Tonnes)
------------------------------------------------------------------------
700,000 18.5 393,000
435 9,200,000
530,000
------------------------------------------------------------------------
11,400,000
959,000
42,300,000 1,610,000
------------------------------------------------------------------------
Nankin Underground (at 33% of Available Tonnes)
------------------------------------------------------------------------
400,000 9.25 118,000
260 3,300,000 170,000
------------------------------------------------------------------------
Total Rosario and Nankin Structures
------------------------------------------------------------------------
Tonnes Au g/t Au Ounces
Ag g/t Ag Ounces eAu Ounces
------------------------------------------------------------------------
11,800,000 2.84 1,077,000
120 45,600,000 1,780,000
------------------------------------------------------------------------
* Note: eAu based on a 1Au:65Ag ratio
Additional potential for gold and silver mineralization exists within the project boundaries. The above estimate does not address other mineralized structures that are known to be present. The potential for significant strike extensions of the Rosario and Nankin beneath post-mineral cover is also not addressed. Successful exploration results in any of these areas could significantly enhance overall project potential.
A program consisting of mapping, sampling and drilling is recommended in order to test the exploration potential of the Guadalupe Gold-Silver Project. An exploration budget is proposed for drilling and sampling that is estimated at U.S. $555,000. Mr. Clancy J. Wendt of Pincock Allen & Holt is the "qualified person" for the purposes of the above technical information pursuant to National Instrument 43-101.
In addition to regulatory and shareholder approval for the acquisition of Mexgold Resources, approval will be sought for (i) a change of the name of Seven Clans to Mexgold Resources Inc., and (ii) a 2:1 share consolidation. Concurrent with the closing of the transaction, Mexgold Resources will complete a private placement of at least $2,000,000 on terms to be determined. Pursuant to these transactions, and assuming 4,000,000 shares are issued pursuant to the private placement of at least $2,000,000, Seven Clans will acquire Mexgold Resources for 14.0 million post-consolidation common shares and it will have net working capital of approximately $2,630,000 when combined with the existing working capital of Seven Clans. Upon completion of the transactions as described above, Seven Clans would have approximately 18,240,561 post-consolidation common shares issued and outstanding. In addition to issuing the 14.0 million post-consolidation common shares pursuant to the acquisition, Seven Clans will issue a post-consolidation option or warrant for each Mexgold option or warrant on identical terms and conditions. At the present time, Mexgold has outstanding: (i) 1,500,000 common share purchase warrants, each whole common share purchase warrant entitling the holder to acquire one common share for $0.10 until November 30, 2004, and (ii) 3.5 million management incentive options, each whole option entitling the holder to acquire one common share for $0.50 until January 10, 2008. It is anticipated that further warrants will be issued pursuant to the $2,000,000 financing as noted above and, if so, such Mexgold warrants will be exchanged for Seven Clans warrants on the basis as described in this press release. Adjusting for the 2:1 share consolidation, Seven Clans currently has 750,000 common share purchase warrants outstanding, each whole common share purchase warrant entitling the holder to acquire one common share for $0.40 until November 20, 2003. On a fully diluted basis, and assuming 4.0 million warrants are issued pursuant to the $2,000,000 financing, Seven Clans will have 27,990,561 shares on a fully diluted basis upon completion of the acquisition of Mexgold.
Press Release 15Jan03
