Recursos Cruz del Sur is a privately held company with several properties located in central Mexico

Recursos Cruz del Sur S.A. de C.V. is a privately held Mexican company that has been active in Mexico for quite some time. Contact David Griffith in Cuernavaca at +52-777-311-1919 for details.

Esperanza Project, Morelos. Optioned to Reliant Ventures 04/07/03

Summary The Esperanza project is located in the state of Morelos some 80 km south of Mexico City. The project covers a skam zone adjacent to a small feldspar porphyry stock The skarn zone is up to 200 m wide. Sampling and drilling to date have found Ag, Zn, Pb, Cu, and Au mineralization. Recursos Cruz del Sur (RCS) is looking for an organization to continue work on this early stage exploration property.

Background A small mining operation during the 1950's extracted a small amount of high grade Au and Ag mineralization from a narrow vein in the stock. The prospect was acquired by RCS in 1994, and later optioned to Minera Teck. Teck conducted surface mapping and sampling, airborne magnetic and radiomettic surveys, a small IP survey, and drilled four diamond drill holes totaling 822 m. In 1998 Teck terminated its option. Over US$200,000 has been invested to date in exploration work on the property.

Geology and Potential The property is located in a topographic window near the southern edge of the Trans-Mexican Volcanic Belt where Quaternary volcano-sedimentary rocks unconformably overlie lower Cretaceous limestone, A medium-grained feldspar-biotite-quartz-porphyry stock intrudes the limestone, and mineralization occurs in a discontinuous skarn and marble replacement zone measuring up to 200m wide adjacent to the stock. The skarn zone may continue to the North under the later volcamc rocks and is open and un-prospected to the South.

The IP survey was conducted over a small portion of the property, and a major anomaly is open and untested to the NNE. Drilling to date was concentrated on small scale IP highs within a broader wide scale anomaly, that in form, suggests it may be part of a "pyrite halo" centered on the stock.

Within the stock the IP anomaly is due to disseminated and fracture related pyrite with associated marcasite, pyrrhotite and arsenopyrite in a silicifed and serictized "granite". The overall shape of the IP anomaly together with the mineralization and alteration suggest the possibility of a porphyry system. Drilling on the periphery ofthe skarn zone returned anomalous but not economic mineralization in both holes, however one hole was abandoned due to bad ground just before intersecting the projected skarn zone.

Channel sampling in trenches within the skarn zone and outside of the coverage of the IP survey and drilling returned up to 429g Ag/t, 0.92% Pb and 0.73% Zn over 3.0m. Select surface samples have returned up to 12.1 g Au/t on the surface, however the Au mineralization is independent of the other mineralization and is not understood at this time, In addition to the elements mentioned above, the skarn zone is highly anomalous in Cu, As, Sb, Bi and occasionally Cd.

Rodeo Project, Michoacan

An early stage porphyry-skarn copper-gold prospect in Michoacan. Best results to date are over 30 m of 1.8g Au, 1% Cu in a hand trench in an endoskarn. That particular showing demonstrates that the system can concentrate metals to grades of economic interest. There is about a 2 x 3 km area of quartz monzonite porphyry that has been altered to a quartz eye porphyry. 

The Machuca Project, Guerrero

The project is located in the Tierra Caliente region of western Guerrero, some 160 km southwest of Mexico City, It is about a 2 1/2 hour drive by 2-wheel drive pickup from Ciudad Altamirano. The project covers a 600m x 600m copper-in-soil anomaly. Copper mineralization is exposed in a vesicular dacite and dacite cobble conglomerate. Recursos Cruz del Sur (RCS) is looking for an organization to continue work on this early stage exploration property.

Background The prospect was found during a regional exploration program in 1996, and is owned outright by RCS. An access agreement has been negotiated with the agricultural cooperative that owns the surface rights.

Geology and Potential The project is located in the Guerrero Colima Orogenic Complex, which consists of Mesozoic volcano-sedimentary rocks related to a submarine arc.

The best mineralization is exposed in two outcrops, each more than 20 x 20 m in size, some 150 m apart. Float prospecting and soil sampling have been used to fill in the gaps and get an overall size for the mineralized area of 600 x 600 m, however within this larger area some unmineralized outcrops and float can be found. The average copper value in the soil within this area is 658 ppm. Grab samples of outcrop have returned up to 5.6% copper.

In hand specimen the mineralization consists of malachite and occasional azurite in clay altered vesicular dacite and vesicular dacite-cobble conglomerate. Thin sections reveal that the clay alteration consists of illite-kaolinite replacement of the feldspars and that illite, montmorillonite and kaolinite are present in varying proportions in the vugs. There are a few submicroscopic grains of pyrite/chalcopyrite in altered feldspars, however -no primary copper mineralization has been seen in hand specimen.

A program consisting of geological mapping and an induced polarization survey costing US$50,000 is recommended to determine the source of the anomaly. A follow-up drilling program would likely cost in the order of a further US$50,000 to US$70,000.

Placeres del Oro Project, Guerrero (Dropped it as of 1Q03)

The Placeres del Oro project was located in the Tierra Caliente region of western Guerrero, immediately northeast of the Placeres del Oro gold district. The project covered a potential porphyry copper-gold deposit. Recursos Cruz del Sur (RCS) was looking for a major mining company to continue work on this early stage exploration property.

Background During late 1995 as a result of an intensive prospecting program, propylitic and K-feldspar alteration associated with copper-gold mineralization was found in a tonalite stock. RCS currently owns 4,200 hectares of exploration mineral concessions in the area and has applied for an additional 3,100 hectares. The property was optioned to a subsidiary of Cambior, Inc. which did additional mapping and sampling, conducted an 11.11 km IP survey, and drilled 832.94m of diamond core in four holes. Due to lack of spectacular results and a drastically reduced exploration budget Cambior terminated the JV agreement in early 1998. Over US$300,000 has been invested in exploration work to date on the project.

Geology and Potential The project is near the southeastern end of what has been called the Michoacan-Guerrero copper belt, a large area of known copper occurrences, and borders on the Placeres del Oro and Puerto de Oro gold districts. It is centered on a composite phaneritic stock. The bulk of the stock is tonalite, which has been intruded by slightly porphyritic quartz monzonite. Porphyry-type alteration and mineralization have been found associated with the quartz monzonite and in the tonalite itself. The average of 55 rock chip samples taken from this mineralization which is exposed ontwo small knolls 4OOm apart is 0.71% Cu and 0.48g Au/t. Due to the IP survey and drilling it is now known that these knolls are not the exposed part of a large deposit, however they are convincing evidence that the project does cover an area with excellent potential to host a porphyry-type copper-gold deposit. There is a wide spread area of propylitic alteration in the tonalite.

Within the area explored by Cambior there is a sizeable open and untested IP anomaly. On other parts of the property hand dug pits have discovered disseminated copper mineralization within the tonalite in areas that in the past were not considered prospective for porphyry-type targets. Apart from the small portion of the property covered by Cambior's IP survey there has been no modern exploration over the property.

Material provided by company, April 2001