Glamis purchased the Mexican assets of Cambior that included their 50% interest in Cerro San Pedro. This was vended to Metallica Resources. Glamis also merged with San Francisco Gold and through this amalgamation acquired a 100% interest in El Sauzal, the largest open-pitable gold deposit in Mexico. It has an oxide gold reserve of 2 million ounces, at a grade of 3.01 g/t gold, within a geological resource of 3.3 million ounces. The deposit remains open in two directions and at depth.
I don't know how long it will be on the web, but the flash-animated website of Francisco Gold is worth checking out as long as it is up at www.franciscogold.com
VERY RECENT HISTORY: After two years of negotiations Francisco Gold as of mid-March, 2002 has decided to try and merge with Francisco Gold Corp. to immediately become the premier intermediate gold producer. El Sauzal and Francisco's other major asset, the Marlin Project in Guatemala goes into the revitalized Glamis Gold, and 300,000 hectares of grass-roots ground in Nicaragua and $25 million in cash will end up in a joint-exploration company tentatively named ExploreCo at the moment. This transaction involves exchanging each Francisco share for $1.55 in Glamis shares plus one share in the new company ExploreCo. (El Viejo Gambusino comment: This isn't a done deal yet, but what a way to finally put some wheels on El Sauzal!!! Go Baby Go!!!)
NMN V88#3, Mar11-17, 2002
Cambior Inc. ("Cambior") announces that it has sold its 100 % interest in Cambior de Mexico, S.A. de C.V., Cambior's Mexican holding company, to Glamis Gold Ltd. ("Glamis"). Glamis has also purchased from Cambior a crusher system originally acquired by Cambior for use at the Cerro San Pedro Project in Mexico. Cambior received cash proceeds of $9.5 million from Glamis of which $7 million is attributed to the shares of Cambior de Mexico and $2.5 million to the crushing plant. Cambior de Mexico's assets include 50 % of Minera San Xavier, S.A. de C.V., which owns the Cerro San Pedro gold and silver project in San Luis Potosi; 100 % of Cambior Metates, S.A. de C.V., which owns a 50 % interest in the Metates gold project ion the State of Durango; and 100 % of Cambior Exploracion, S.A de C.V., which holds interests in a variety of gold exploration projects in Mexico. Proceeds from the sale will be used to reduce Cambior's obligations to its financial creditors.
Press Release 9May00
Cerro San Pedro, SLP. Glamis Gold's purchase of Cambior de Mexico resulted in Glamis being the operator and also owning 50 percent of the project. At a gold price of $275 per ounce and a silver price of $5.00 per ounce, the project has a 14.4 percent rate of return before financing costs. The following table summarizes the results of the feasibility study:
Cerro San Pedro Project -- Revised Feasibility Model
Price of gold per ounce $275
Price of silver per ounce $5.00
Life of mine 8 years
Average ounces Au equivalent (AuEq) / year 108,800
Average tonnes ore per year 6,156,000
Waste: Ore strip ratio 1.45:1
Initial capital requirements $44.5 million
Total cash cost per AuEq ounce $169
Total cash cost per ounce (Ag credit) $129
IRR (without financing charges) 14.4%
NPV at 5% (without financing charges) $18.6 millionMetallica and Glamis initially agreed to continue limited development of the project pending commodity price improvements. NOTE: Metallica acquired Glamis' interests in this project in February, 2003 for cash and a nsr.
During 2001, total spending on Cerro San Pedro is budgeted at $1.77 million. The major 2001 activities will include completing the relocation of the village of La Zapatilla, structural stabilization of the San Pedro Apostle Church, establishment of the mine site office for future operations, and continued compliance with existing permits and regulations. At year end, Glamis will be required to invest approximately $1.85 million to maintain its 50 percent interest in Cerro San Pedro. The earn-in will fund the on-going budgets and work plans.
Press Release 12Dec00
La Cieneguita heap-leach in Chihuahua which credited Glamis for 414 oz of production in first six months if 1996 9when it still owned only 60% of property). Glamis purchased Aquiline's 40% interest in May of 1998 to control 100% of this small OP/HL operation which produced around 1200 oz annually. A 1% nsr was due to Aquiline on this property. This asset is presently in the hands of Corporativo Minero S.A. de C.V. and is sitting idle waiting for an investment partner.
CMH 1998-1999
LAMR June, 1998Jojoba Property, Sonora. Wrote off $879,000 on after drilling 21 holes and dropped its option to earn in 75% back to Aquiline Resources in April, 1996. (Aquiline subsequently farmed Jojoba to Hecla who also bounced it back after kicking the tires). Sold 1,590,908 shares it held in Aquiline to Laramide Resources in November, 1996. Attempted takeover of Eldorado Gold Corporation in 1995, but was not successful and wrote off $619,000 1Q fiscal year ending 30Sep95. Jojoba has returned to the underlying owner and apparently is the subject of a legal dispute regarding ownership with Aquiline.
WWW info
CSW (Aquiline) 20Nov96
GCN #155 12Aug96
GCN #90 8May96
GCN #215 8Nov95
NMN v82 #5 04/01/96
Francisco
Gold Corp. FGX
(CDNX)
After two years of negotiations Francisco Gold as of mid-March, 2002 has decided to try and merge with Glamis Gold Corp. to immediately become the premier intermediate gold producer. El Sauzal and Francisco's other major asset, the Marlin Project in Guatemala goes into the revitalized Glamis Gold, and 300,000 hectares of grass-roots ground in Nicaragua and $25 million in cash will end up in a joint-exploration company tentatively named ExploreCo at the moment. This transaction involves exchanging each Francisco share for $1.55 in Glamis shares plus one share in the new company ExploreCo. (El Viejo Gambusino comment: This isn't a done deal yet, but what a way to finally put some wheels on El Sauzal!!! Go Baby Go!!!)
NMN V88#3, Mar11-17, 2002
Since its' discovery in November, 1995 the Company has completed 187 diamond core drillholes (27,514 m) , collected over 3,500 rock chip/channel samples and completed 25 kilometers of IP geophysics. This effort has defined:
Measured, Indicated, and Inferred Mineable Reserves @ $325 Gold Price
Category Tonnes (millions) Gold Grade (g/t) Ounces (millions) Measured 12.8 3.72 1.54 Indicated 1.98 1.93 0.12 Inferred 6.09 1.88 0.37 TOTAL 20.9 3.01 2.03
Data in table from Francisco's websiteOLD HISTORY: Name changed from Randstrom Manufacturing Corporation (ROW-VSE) as of January, 1994. Back in 1993 Randstrom's wholly owned subsidiary, Minas de Alta Pimeria S.A. de C.V. had an option on the 2,706 ha. Huizopa prospect 240 km W of Chihuahua City. Quartz veins with Au in Tertiary volcanics 3-5m wide dipping 45-60 E with km strike lengths. Also had optioned El Sultan property in Zacatecas, This carbonate-hosted property was described as a "Carlin-type" where 100,000 of high-grade were mined. Alta Pimeria staked additional 800 ha. covering favourable limestones in area. Also had optioned La Dura, a 195 ha. Au property in Tertiary volcanics located 5 km SE of Matarichic and fairly near the Placer Dome/Kennecott Mulatos Au deposit in eastern Sonora. Francisco Gold Corp. completed acquisition of a 51% interest in Goldeneye Explorations, a private BC corporation and now own 100% of Cia. Alta Pimeria S.A. de C.V.
GCN #233 6Dec93
GCN #195 12Oct93
NMN 10/25/93El Sauzal Gold Discovery, Batopilas District, Chihuahua discovered in November, 1995. Located in Urique Canyon property position includes 13 concessions which originally totaled 101,607 Ha. This area has been reduced somewhat after reconnaissance evaluation of region. Drilling has continued into 2Q99 to upgrade and expand initial reserve base. Francisco has now drilled 188 holes at El Sauzal totaling 27,580 m of core. Based on 124 holes, the independently calculated geological and mineable gold resources were 3.59 million ounces at 2.21 grams per tonne and 2.25 million ounces at 3.0 grams per tonne, respectively. Drilling continued to late June and the onset of the rainy season. Metallurgical testing by METCON Inc. of Tucson, AZ continues. At a 3/8 inch size 85% of Au was recovered from a vuggy-quartz bulk sample in a 49 day cycle. Mineralized quartz-alunite-hemetite altered rock is now being tested. Both Behre Dolbear's Sep. '98 and M3's March, 199 economic evaluations are based on these parameters: 2,252,134 mineable ounces at 2.98 gpt Au, 10,000 tpd OP with a strip ratio of 1.58:1 and recovery rates around 92-93%. Annual production of 300,000 oz/yr.
Press Release 23Aug99
Press Release 12May99
Press Release 11Mar99
Press Release 2Mar99An earlier independently calculated geological resource of 3.2 million ounces using at 2.1 grams Au per tonne 0.5 gpt Au cutoff by Mine Reserve Associates of Wheat Ridge, CO. Preliminary engineering and scoping study by Behre Dolbear and Company recommended development as an open pit mine with conventional carbon-in-pulp leach plant and additional gravity circuitry. The Base Case Scoping Scenario estimated the capital cost at $174.5 million for an 8,000 t/day operation producing 254,000 oz/year. Most recent drilling evaluation added 370,000 to make it 3.59 M oz at grades of 2.21 grams/tonne using a 0.5 gram cutoff.. These figures were based on latest data as of August, 1998. (M3 Engineering recently presented a revised economic scenario - see below)
METCON Research of Tucson got excellent results form agitatied cyanide bottle roll leach tests in 4Q98: quick efficient Au recovery and low cyanide consumption. M3 Engineering recently visited site and have been hired to undertake a detailed capital and operating cost study based on new drill data and metallurgical reports. Their report is expected to be completed in February, 1999 and to considerably reduce costs from previous scoping study. Continued drilling on the West Lip, West and East zones is expanding reserve base. Hole #130 had 114m grading 5.57 gpt Au which included 34m of 13.28 gpt. IP/resistivity presently being used to define silicified targets and feeder zones.
March 2, 1999: A revised scoping study by M3 Engineering of Tucson, AZ reported the following significant results:During its mine life El Sauzal is projected to produce an average of 300,000 oz of Au annually at an average cash cost of US$86/oz with total costs (capital and operating) less than US$150/oz.
Average production cash cost for the first 4 years is expected to be US$68/oz.
Total capital costs are estimated at US$138.8 million which includes sustaining capital and contingency.
At US$325/oz Au, the before and after-tax payback periods are 1.2 years and 1.7 years respectively.
The project has an after-tax internal rate of return of 48% at US$325/oz Au and 42% at US$300/oz AuPress Release 2Mar99
CSW 29Jan99
GCN #16 25Jan99
CMH 1998-1999
GCN #167 31Aug98August 23, 1999: Francisco Gold Corp. is pleased to report the results of the final 19 holes completed from the
latest drill program at its El Sauzal Gold Project in Chihuahua State, Mexico. Since late November, 1998, 64 core holes have been drilled totaling 7,250 m. The drill program primarily tested extension targets outside the previously defined mineable resource model. Fifty-four holes or 84% of the total intersected significant gold mineralization. Highlights from the 64 hole drill program include: Thirty holes drilled west of the West Zone have developed a new mineable resource which still remains open to the southwest. Seven holes returning significant, near-surface gold mineralization extended the southeastern boundary of the West Zone by more than 100 m. Fifteen holes defined a previously untested mineralized block west of the Central Fault in the East Zone. Hole #185 and #186 hit high grade gold mineralization on the northwest and southeast margins of the East Zone, generating future resource extensions.West Zone:
Thirteen of the final 19 holes stepped-out west and southwest of the West Zone and targeted structurally-controlled, geophysically defined extension zones. All the drill holes intersected gold mineralization associated with southwest trending high resistivity, fault/feeder structures. The new holes confirmed that the continuity of gold mineralization extends along 3 or 4 distinct corridors for more than 300 m to the southwest and remains open.
Hole #
Interval (m)
Length (m)
Gold (g/T)
170
109-115
6
1.08
172
34-44
10
1.80
including
34-36
2
7.28
174
42-51
9
1.24
175
15-29
14
1.50
176
11-18
7
6.89
176
67-69
2
1.98
176
89-93
4
1.27
177
16-23
7
1.23
177
74-76
2
1.40
178
3-17
14
1.00
178
47-59
12
3.2
179
15-30
15
0.85
180
3-45
42
3.78
including
5-11
6
14.27
181
33-72
39
1.26
including
51-55
4
9.64
181
110-112
2
2.39
182
0-60
60
0.19
183
0-160
160
0.18
184
0-12
12
4.12
184
40-46
6
2.35
184
99-110
11
1.30
187
2-22
20
0.61
Drill hole # 173 further tested the southeastern extension of the West Zone. The drill hole
returned gold mineralization similar to nearby holes and expands the development of a newly defined resource block to the southeast.
Hole #
Interval (m)
Length (m)
Gold (g/T)
173
8-38
30
1.62
East Zone:
potential extension areas identified by recent geophysical IP surveys and geological/structural interpretations. Hole #185 cut a previously undiscovered stratigraphically-controlled, high grade zone of mineralization. Additional holes are planned to test the extension of this zone to the north. Hole # 186 explored a geophysical anomaly believed to be associated with a northeast trending, high grade feeder structure. This hole has extended the high grade gold mineralization eastward from previous intersections. The geophysical anomaly continues for at least 200 m to the NE and could represent a new significant resource block.
Two drillholes, located on the northwest and southeast margins of the East Zone, tested new
Hole #
Interval (m)
Length (m)
Gold (g/T)
185
60-88
28
3.87
including
81-83
2
43.94
186
11-36
25
2.18
186
47-70
23
0.80
Cocoyome:
kilometres northeast of the East Zone. Several surface samples collected reported gold values of 0.5 - 2.0 grams per tonne in vuggy quartz/clay-hematite outcrops similar to El Sauzal. An exploratory hole (#188) drilled in the target intersected multiple postmineral dikes with low-grade gold values. Further work is planned to determine whether this zone represents a potential extension to the main El Sauzal deposit.
Regional mapping and surface sampling was recently undertaken on a new target located 1.2Updated Resource Calculations:
holes, the independently calculated geological and mineable gold resources were 3.59 million ounces at 2.21 grams per tonne and 2.25 million ounces at 3.0 grams per tonne, respectively. The 1999 drill program has focused on expanding El Sauzal's mineable, oxide resource. In plan view, the new 64 holes have tested an area 40% larger than the previous drill coverage. The additional mineralized zones generated will expand and upgrade the resource categories. Updated resource calculations are underway through Mine Reserve Associates Inc. of Wheat Ridge, Colorado and are expected to be available in 6-8 weeks. Francisco plans to continue drilling at El Sauzal after the rainy season later this fall. Peripheral extensions including the northwest and southeast flanks of the East Zone and the southwest continuity of the West Zone's mineralized corridors will be primary targets. Francisco is also actively evaluating the acquisition of another, large scale exploration gold project located in Mexico.
Francisco has now drilled 188 holes at El Sauzal totaling 27,580 m of core. Based on 124March 5, 1998: Significant assay results from 5,300 m drill program continued to expand the El Sauzal Gold Deposit. Positive results from the remaining 29 of the 38 HQ core drill holes recently completed at its 100% owned El Sauzal Gold Project in Chihuahua State, Mexico. Eighty-five percent of the latest drill holes intersected significant gold mineralization. Results from this drilling program will increase both the 3.22 million ounce geological gold resource previously calculated by Mine Reserves Associates Inc. and Behre Dolbear's original mineable resource estimate of 2.0 million ounces. As of 3/5/88 Francisco had drilled 124 holes at El Sauzal totaling 20,250 m. The high-grade, oxide, epithermal gold system remains open to the west, northeast, south and at depth. (Tabulated results reported at great length).
Results support management's belief that the El Sauzal gold deposit has significantly increased and future drilling of several extension areas will almost certainly expand the known resource. Based on the 124 holes drilled by 03/05/98, an updated geological and mineable resource will be calculated by Mine Reserves Associates and Behre Dolbear.
Construction of the all-season road to El Sauzal is completed. A permanent camp for future exploration and development was built by early May, 1998. Francisco resumed definition and extension drilling in May, 1998 with reverse circulation and core rigs. Bulk metallurgical testwork was also initiated together with on-going engineering studies to advance El Sauzal to the pre-feasibility stage.
HISTORY: Initial claim was La Brigida and was only 25,000 ha. Title of La Brigida has been received. Expanded land holdings to around 200,000 acres in area. Acid-sulfate Au system with silica-alunite alteration over 700m by 500m on surface and 180m vertical exposure. Geometry is NNE-SSW dipping 20-40W. Preliminary bottle-roll tests show 75% recoveries. Phase II drilling was 15 helicopter supported DDH holes drilled Oct.-Nov. 1996 totaling 2,849 m. Results announced on Friday 28, 1997 and they were spectacular. Drill highlights include Hole SZ97-25 of 260.1m grading 5.74 gpt which includes 55.9m of 25.57 gpt. Other holes include intercepts of 30.4m of 10.06 gpt; 34.6m of 6.3 gpt; 132m of 4.23 gpt; 123.9m of 5.5 gpt; 29.5m of 9.93 gpt; 56.9m of 30.86 gpt. Trading was halted on 2/27 around $18 and market re-opened Monday 3/3 around $31. Initial estimates after 33 holes are around 28.9 million tonnes at an average grade of 0.111 opt Au or around 3.2 million ounces Completed 29.5 million dollar financing for further work. Phase III drilling involved 45 HQ diameter core holes totaling 6.500 m testing extensions to both West and East Zones and several new prospective areas within land package. Confidentiality agreements were signed with 15 major mining companies as of May 9, 1997.GCN #16 25Jan99
GCN #167 29Aug97(Balance of Phase III highlights tabulated)
GCS #135 15 Jul97 (Initial Phase III highlights tabulated)
CSW 9May97
NMN 03/10/97
GCN #43 3Mar97 (with table, plan view and different section than MBD)
MBD Mar, 1997 (with section)
PR Newswire 28Feb97
Globe + Mail 4Mar97
CSW 31Jan97
GCN #239 11Dec96
CSW29Nov96
CSW 8Nov96
NMN 10/28/96
LAMR, Nov, Sep. 96Francisco Gold Corp. (VSE:FGX) announced that a Phase IV diamond drill program is scheduled to recommence in late November. Two diamond drill rigs were contracted and mobilized to the property. During 1997 a total of 86 drill holes, totaling 14,950 m, delineated a 1.6 km long epithermal gold system which remains open to extensions west, east and north. Detailed stratigraphic and structural studies analysis in the field defined several target areas where excellent potential existed to expand the West Zone's mineralization into down faulted blocks both to the northwest and southeast. These studies also identified priority extension targets for the East Zone situated to the northeast and east. In addition, alteration zoning studies suggested that the area between the West and East Zones could host significant gold mineralization at depth in the sulphide horizon. The upcoming drill program will test these step-out targets adjacent to the West and East Zones and continue through 1998 to further expand El Sauzal's gold resource.
A regional prospecting and major stream sediment sampling program has been recently completed over a 20 km x 30 km grid area surrounding El Sauzal. Preliminary results have indicated that Francisco's Cuesta Colorada prospect located 1.5 km N-NE of El Sauzal is structurally and geologically related to El Sauzal. Stream sediments collected at Cuesta Colorada were all anomalous with gold values up to 0.6 grams per tonne. Five km NW of El Sauzal, regional exploration led to the discovery of an intrusive hosted, bulk tonnage target which has the potential to contain a significant resource. A grid-controlled sampling program is underway to advance these new deposit targets to the drill ready stage for 1998.
Before the end of November Francisco expects to receive, based on the drilling completed to date, an independently calculated geological resource estimate for the El Sauzal gold deposit from Mine Reserve Associates Inc. of Denver, Colorado. In addition, Behre Dolbear and Company Inc., ("Behre Dolbear") of Denver, Colorado, has been retained to conduct a scoping study to evaluate the economics of the El Sauzal gold deposit. Based on the technical information available, Behre Dolbear has indicated that El Sauzal will support a minimum 250,000 ounce per year mining operation with excellent project economics. Behre Dolbear's scoping study report will estimate the capital and operating costs of an open pit mine and recovery plant including supporting infrastructure and camp costs. This report is expected to be completed next week.
In late October Francisco commenced the construction of a 20 km access road to El Sauzal. The Chihuahua State government is the road construction contractor and has agreed to subsidize the project by providing the necessary heavy duty earth moving equipment at no rental cost. Francisco has agreed to fund all of the direct operating costs, administrative support and technical supervision of the project. Francisco's budget for the access road is US$400,000. To date, approximately 25% of the road has been constructed and it is expected to be completed in February.News Release 20Nov97
Los Corralitos Cu-porphyry, Batopilas District, Chihuahua. A 7,384 ha. property located near the town of Batopilas and east of the El Sauzal Project. This porphyry Cu prospect was optioned to PD. They can earn in up to 70%. As part of the deal PD vended its Tucan and El Pajaro claims into the deal bringing the total package to 91,000 acres. Geophysics has identified a 650m by 250m resistivity low interpreted as core of altered and oxidized intrusive. Peripheral to this zone lies a 750m by 400m Cu soil anomaly with values between 0.1% and 0.6% Cu which correlate with a resistivity high. Drilling planned early in 1Q97.
MBD February, 1997
CSW24Jan97
GCN #15 22Jan97La Guitarra Au Property, Chihuahua. An epithermal gold property near Temoris in SW Chihuahua which has been explored for the past 3 years with mapping, trenching and drilling. A 12 line-km IP/resistivity survey outlined a conical-shaped 400m by 500m anaomaly at depths of 120m interpreted as a oxide crackle breccia pipe. This anomaly coincides closely with silicification observed at the surface. Target concept is 20+ million tonnes of mineralized rock. Project being drilled with 5 to 10 large diameter RC holes to compensate for free native gold in vugs. Average depths expected to be 15 meters.
GCN #207 28Oct97
PDAC literature March, 1997El Realito, (210 ha) and Santiago (166 ha) properties, both in Chihuahua.
VSE profile data
Randol Mexico '97 conferenceLa Dura Property, Sonora. Located in Mulatos District, property is 195 ha. drilled in May '96 by JV partner Adola Gold Ltd. Assays received. Adola dropped property back to Francisco.
Sedimentary Cu-Ag in Coahuila in huge land package near Monclova, Coahuila covering 750,000 acres JV'ed with BHP Minerals who have spent $2.3 million on property as of March 31, 1998. Francisco's Interest held through 50.1% of private company Goldeneye Exploration. BHP and Goldeneye have been whacking away at this area for the past couple years and BHP carried out a second phase of drilling
CMH 1998-1999
MBD February, 1997
GCN #152 7Aug96
GCN #131 8Jul96
LAMR, v3, #4 Apr. 96
NMN v82#13 05/27/96
MBD November, 1995
