Drilling in 2007 included true width intercepts of 11.3 m of 15.6 grams per tonne gold, 6.1 m of 4.7 grams per tonne gold, and 9.4 m of 7.8 grams per tonne gold. There is potential for over one million gold ounces that could be mined as a high grade underground mine. Adit believes that the favorable logistics, past history, and geology make Picacho the highest quality gold exploration property in northern México.
In addition, the Adit management team is experienced in advancing a project form discovery to production. The business strategy of Adit is to become a leading low-cost precious metals producer with the initial objective of advancing the Picacho property to the point of having inferred resources by late 2010 and into production by late 2012. Several factors form the basis to justify aggressively advancing these projects towards production.
- The amount of historical work completed on these properties.
- The grades returned from recent sampling.
- The proximity of the project to other similar advanced stage gold/silver projects.
- The known and potential cumulative length of the mineralized structures.
Adit management will add shareholder value by:
- Drilling of the 1.5 km Picacho Vein in 2010.
- Targeting and prospect drilling of the remaining 7 km of veins.
- Acquiring additional high quality properties.
- Listing Adit Resources on a public exchange.
In an effort to judge current valuation and potential for Adit, based on the Picacho property alone, a review of past work and documentation was conducted. Vein textures and mineralogy suggest that the level of exposure in the hydrothermal system is quite high, thus the precious metal zone should persist for several hundred, perhaps as much as 600 meters below the surface.
There are approximately 2,000 meters of underground workings at the old Picacho mine and perhaps a few hundred meters of workings elsewhere on the property. Most of the Picacho mine workings that are on the vein have been sampled at 3 to 5 meter intervals. There has been over 5,300 meters of diamond drilling there, done in three phases.
Using the sampling of the underground workings and the drilling intercepts along the main portion of the Picacho vein, it has been possible to roughly define four mineralized zones. Three of them are 70 to 90 meters wide along strike, but the third one is at least 120 meters wide along strike and open to the north. The zones appears to widen with depth, with increasing grades. It may represent the upper part of a larger ore-shoot.