The Picacho project area consists 7,060 ha and is located in the Northern Sierra Madre Gold Belt, 120 km south of the U.S. border and 65 km northeast of Yamana’s Mercedes production project (expected to produce at 120,000 ounces per year). The area has a high level of exploration activity, is close to a national paved highway, power grid, and a 1,200 m airstrip.
- Previous producer with 2,000m of underground workings.
- Using old inefficient methods, produced over 200,000 gold ounces from a 0.6 km section of one vein from several 4-6m wide faces.
- On trend with Mercedes and surrounded by senior owned properties.
- Visible mineralized outcrops and easy to follow vein structures.
- Potential for 1+ million ounces of gold and senior strategic buyers.
- Sampled mine workings at 3 to 5m intervals.
- Confirmed (twin holes) historic data derived from 22 core drills.
- 5,300m drilled to date including 11.3m of 15.6 g/t gold, 6.1m of 4.7 g/t gold, and 9.4m of 7.8 g/t gold.
- Nine gold-bearing veins have been identified over four mineralized target areas with an aggregate strike length of over 10.8 km.
- Zones widen with depth with higher grades.
- Exposure suggests 600+m depth possible.
- Former North American head of exploration for Yamana is now CEO.
- 1 Million+ oz gold potential. Initial modeling indicates very strong project economics with costs below $450/oz.
- Discussing JV with senior strategic producer.