43,000 HECTARE PROJECT IN THE BATOPILAS REGION OF CHIHUAHUA, MEXICO
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INTRODUCTION
The Batopilas region fits EXMIN’s criteria: There are regional scale structural zones and it has had significant historic production. EXMIN was active in the area early enough to stake a large concession and pick up several relatively unexplored areas of strong alteration with potential to host mineralization.
EXMIN staked a district scale concession in the Batopilas Mining district of western Chihuahua. The concession, Huimayvo, covers approximately 44,700 hectares and completely surrounds the Batopilas camp, currently being explored by MAG Silver Corp., and covers several large scale exploration targets at Satevo, Corralitos, La Verde, and Cerro Colorado.
In September 2007, EXMIN entered into a joint venture with Canarc Resources, a Canadian junior exploration company, covering a small fraction of the Huimayvo concession. Under the agreement, Canarc can acquire up to a 75% interest in a 791 hectare portion of EXMIN's Huimayvo concession (termed the "Santiago Fraction"), which surrounds the 171 hectare Santiago Gold Project, paying US$25,000 in cash to EXMIN after year 1 and spending up to US$1 million on the project over 5 years. After vesting, Canarc and EXMIN intend to form a joint venture to continue the exploration and development of the Santiago Fraction.
SUMMARY
La Verde: In October 2006, EXMIN entered into an option agreement to purchase 100% of two concessions that cover the La Verde prospect, which is located within the boundaries of the Huimayvo concession. EXMIN has optioned two concessions, La Verde and Ampliacion La Verde, covering approximately 600 hectares, for payments totaling US$ 520,000 dollars over 4 years for a 100% interest.
Corralitos: The Corralitos is a porphyry copper prospect at the edge of the Batopilas silver camp. Phelps Dodge previously explored the area and defined a small near surface oxide copper body, but determined that it was not big enough for them. However, little work has been done surrounding the copper core to the deposit, and there is potential to discover additional silver mineralization surrounding the intrusion.
Satevo: The Satevo area consists of strong quartz alunite alteration surrounding several volcanic structures, and may be related to the Corralitos porphyry system. The alteration assemblages are similar to those exposed at the nearby El Sauzal deposit (Goldcorp) and interesting precious metal values have been identified in surface sampling. Peñoles previously drilled a few holes in the area but dropped the property during the low metals prices.
GEOLOGY
Several mineralized areas are present in the Batopilas district and surrounding areas. EXMIN’s concessions surround the Batopilas silver Camp, and partly cover the La Verde-Tres Hermanos, Corralitos, Satevo and Cerro Colorado mineralized areas.
The optioned La Verde concessions cover part of a regional scale structure that trends northwesterly from the Tres Hermanos mine, a former gold producer. According to the Servicio Geologico Mexicano, equivalent to the Mexican Geological Survey, the Tres Hermanos mine produced small tonnages of ore at a grade of 16.35 grams per metric ton (g/t) from 1916-1936, although total production records are not available.
The Tres Hermanos mine exploited a rich ore shoot that measured about 300 meters horizontally by 180 meters vertically, but only small shallow mines and prospects have explored the structure further north along an approximate six kilometers of strike length. Surface sampling by EXMIN along the structural zone exposed on the La Verde concession has yielded values of as much as 7.65 grams per metric ton (g/t) gold and 4% copper over 3 meters, and 5.67 g/t gold and 5.9% copper over 3.4 meters, as well as locally important silver, zinc and lead values.
The Corralitos porphyry copper prospect is located just south of the Batopilas silver camp. It has been postulated that the silver mineralization is related to the intrusive center at Corralitos. Exmin controls the region surrounding the Corralitos intrusion on three sides, apart from the Batopilas camp that is controlled by MAG Silver. Previous exploration has also defined a body of near surface oxide copper than needs to be evaluated in more detail.
The Satevo prospect is located southeast of Corralitos and is propably related to the intrusive system. A large area of advanced argillic alteration resembles the nearby El Sauzal mine (Goldcorp, 2 MMoz gold). Only a small part of the area has been previously explored in detail.
The Cerro Colorado area is located several kilometers north of the Batopilas pueblo. Mining companies were active in the region at the same time as at Tres Hermanos, but production levels are not known. Small mines were developed on several veins as well as at least one large stockwork zone. Part of the area is covered by pre-existing, third-party concessions, but the large alteration zone extends for several kilometers on ground controlled by EXMIN.
