Flagship Gold Exploration - Sonora, Mexico
COMMODITY |
Gold and Silver |
DEPOSIT TYPE |
Low Sulphidation Epithermal Au-Ag Rhyolite Flow Dome Complex |
LOCATION |
Sonora, Mexico – 40 km SW of Agua Prieta |
SIZE |
7,739.4 hectares |
STATUS |
Drill Permitted - Summer 2020 drilling planned |
HIGHLIGHTS |
133.7 g/t Au and 335 g/t Ag top rock chip and grab samples |
Overview:
The Cecilia Project is a district scale gold and silver low sulfidation epithermal system centered on multiple mineralized rhyolitic flow-dome complexes. Gold mineralization is concentrated along NW and NE regional structural lineaments with high grades assayed at the intersection of these structures. The project is made up of 3 concessions: Cerro Magallanes, Cecilia 1 and Cecilia 2. One of the workings at the Cerro Magallanes dome returned high grades up to 133.7 g/t Au and 335 g/t Ag. As many as 30 abandoned exploration adits, small underground galleries and surface prospect pits are distributed over the upper slopes of Cerro Magallanes, which are believed to date back to the early decades of the 20th Century. In addition to the rhyolite domes the underlying sedimentary Cabullona group and Paleozoic limestone provide an environment for replacement style mineralization at depth. Carlyle has entered into a 3-year option to acquire 100% of the project from Riverside Resources (TSXV: RRI). Riverside’s current analogues for Cecelia are SSR Mining’s Pitarrilla deposit and Fresnillo’s San Julian deposit, which contain 526 million oz Ag (Measured + Indicated) and over 230 million oz Ag respectively.
The Cecilia Project is located 40 km southwest of the Mexico-U.S.A. border town of Agua Prieta in Sonora, Mexico. The project is directly accessible by well-maintained dirt road from highway 17.
The Cecilia Project is a district scale gold and silver low sulfidation epithermal system centered on multiple mineralized rhyolitic flow-dome complexes. Gold mineralization is concentrated along NW and NE regional structural lineaments with high grades assayed at the intersection of these structures. The project is made up of 3 concessions: Cerro Magallanes, Cecilia 1 and Cecilia 2. One of the workings at the Cerro Magallanes dome returned high grades up to 133.7 g/t Au and 335 g/t Ag. As many as 30 abandoned exploration adits, small underground galleries and surface prospect pits are distributed over the upper slopes of Cerro Magallanes, which are believed to date back to the early decades of the 20th Century. In addition to the rhyolite domes the underlying sedimentary Cabullona group and Paleozoic limestone provide an environment for replacement style mineralization at depth. Carlyle has entered into a 3-year option to acquire 100% of the project from Riverside Resources (TSXV: RRI). Riverside’s current analogues for Cecelia are SSR Mining’s Pitarrilla deposit and Fresnillo’s San Julian deposit, which contain 526 million oz Ag (Measured + Indicated) and over 230 million oz Ag respectively.
The Cecilia Project is located 40 km southwest of the Mexico-U.S.A. border town of Agua Prieta in Sonora, Mexico. The project is directly accessible by well-maintained dirt road from highway 17.
Exploration Targets:
Exploration Next Steps:
Summer 2020; Carlyle is targeting to complete a 5,000-meter drill program to test three gold targets at the Cerro Magallanes Dome that have been defined from a combination of sampling old mine workings and recent prospecting.
- Cerro Magallanes Dome Concession: San Jose, North Breccia, Central Target and East Target
- Cecilia 1 Concession: Casa de Piedra, La Mesa, Medias Rojas, Cruz 1, Cruz 2 and Magallanecito
- Cecilia 2: Further ground exploration needed
Exploration Next Steps:
Summer 2020; Carlyle is targeting to complete a 5,000-meter drill program to test three gold targets at the Cerro Magallanes Dome that have been defined from a combination of sampling old mine workings and recent prospecting.
Cerro Magallanes Dome Targets:
Cerro Magallanes Dome encompasses four sub-targets: San Jose, North Breccia, Central Target and East Target (Figure 4). Riverside’s extensive work program since 2017 have shown a vertical variation with significant concentration of Ag at the base of the dome along the eastern slope to gold-only enriched at the top of Cerro Magallanes. Three specific elevation: 1,700m, 1,900m and 2,100m comprise most of the high-grade, which suggest multiple mineralizing events within specific structural settings, along dome margin and stratigraphy. This style of mineralization is very similar to the Pitarilla mine in Durango, where large volumes of mineralized rock can be found in addition to high-grade structural bounding margins. This hypothetic target at Cerro Magallanes would be at 300 to 500 meters depth from the top of the dome, evident by the presence the Cabullona sediments outcropping at 1,650 m elevation on the eastern slope.
Cerro Magallanes Dome encompasses four sub-targets: San Jose, North Breccia, Central Target and East Target (Figure 4). Riverside’s extensive work program since 2017 have shown a vertical variation with significant concentration of Ag at the base of the dome along the eastern slope to gold-only enriched at the top of Cerro Magallanes. Three specific elevation: 1,700m, 1,900m and 2,100m comprise most of the high-grade, which suggest multiple mineralizing events within specific structural settings, along dome margin and stratigraphy. This style of mineralization is very similar to the Pitarilla mine in Durango, where large volumes of mineralized rock can be found in addition to high-grade structural bounding margins. This hypothetic target at Cerro Magallanes would be at 300 to 500 meters depth from the top of the dome, evident by the presence the Cabullona sediments outcropping at 1,650 m elevation on the eastern slope.
Figure 4. Cerro Magallanes Dome
- The San Jose target is located at the top of the dome along the primary structural zone bisecting the peak of Cerro Magallanes. There are over half a dozen of old workings here, some of them accessing multiple parallel fault zones carrying gold mineralization of 47 m @ 1.12 g/t Au, 8 m @ 0.91 g/t Au (Cambior, 1995). At surface, Riverside’s assays returned 3.0 and 7.9 g/t Au for a 1.5 m long channel and up to 9 g/t Au rock chip sample. These veins show classic epithermal multigenerational opening and filling textures typical of feeder zones like those at the San Julian Mine in Chihuahua also of the same mid-Tertiary age.
- North Breccia target has an outline of 250 m by 100 m and is marked by multiple zones of hydrothermal brecciation in porphyritic, flow banded and flow breccia rhyolitic rocks with strong hematite-stained silica alteration. Locally, crystallization of quartz and fluorite in open-space as well as veinlets is visible, however the area shows primarily extensive fractures along NW-SE trend with strong hematite and clay-rich gouge material. Since 2017, Riverside Resources collected over 75 rock-chip samples in this area. Twenty-six of these samples returned gold assays ranging from 0.41 to 7.46 g/t Au. CRM and Cambior both drill-tested this area and intersected a 30 m interval of 1.41 g/t starting 4.0 meters downhole (138-95-08). The same portion of mineralization was intersected in hole 139-95-19 and produced an 8-m-long interval that averaged 0.65 g/t Au.
- Central target is located along the same northwestern trend as the North Breccia and returned one sample of 133 g/t Au and 335 g/t Ag in mine dump. There are numerous small underground workings reportedly dating back to the 1940s that extend as a linear feature from the peak of Cerro Magallanes down the slope. Riverside Resources collected 30 samples across the target, which returned between 0.5 and 133.7 g/t Au with values worth noting such as 58 g/t Au and 19 g/t Au with reported respective silver values of 288 g/t Ag and 335 g/t Ag. The Central target was tested by 5 drill holes in 1995. Hole 139-95-17 intersected 42.0 m averaging 0.49 g/t Au with a maximum assay of 3.26 g/t Au. Hole 138-95-9 & -10 intersected 36 m at 0.2 g/t Au and 60 m at 0.2 g/t gold.
Cecilia 1 Targets:
Cecilia 1 concession encompasses a wide range of rocks, from Precambrian granite, to Paleozoic limestone and Cretaceous Cabullona sedimentary group. This succession was strongly affected by major NE and NW structural corridors that created a horst and graben terrain and northwest trending rhyolitic dikes. The six targets, Casa de Piedra, La Mesa, Medias Rojas, Cruz 1, Cruz 2 and Magallanecito are located along the NE and NW regional structures. Soil sampling geochemistry suggests near-boiling zone targets with anomalous gold exceeding 1 g/t (Precipitate Minerals, 2016, unpublished).
Cecilia 1 concession encompasses a wide range of rocks, from Precambrian granite, to Paleozoic limestone and Cretaceous Cabullona sedimentary group. This succession was strongly affected by major NE and NW structural corridors that created a horst and graben terrain and northwest trending rhyolitic dikes. The six targets, Casa de Piedra, La Mesa, Medias Rojas, Cruz 1, Cruz 2 and Magallanecito are located along the NE and NW regional structures. Soil sampling geochemistry suggests near-boiling zone targets with anomalous gold exceeding 1 g/t (Precipitate Minerals, 2016, unpublished).
- The Casa de Piedra and La Mesa targets, both show the same style of mineralization primarily along NE trending faults extending for at least 2 km across the project area. Alteration and veining are visible within the Cabullona group rocks and increases in the limestone unit noted as jasperoid along structures and near rhyolitic dikes (see Figure 5 below). Some of the best results are located at La Mesa target with 2.81 g/t Au along a 2 m channel sample; and 0.907 g/t Au and 0.497 g/t Au at Casa de Piedra1. This area is believed to host a deeper target closer to the boundary of the limestone and the quartzite.
Figure 5. Cecilia 1 - Casa de Piedra
- Medias Rojas is located along a NE trending structural corridor along which a more or less continuous vein/breccia/stockwork zone can be traced for at least 250 m. The corridor is about 20 m wide and comprises 3 to 5 parallel quartz veins with hematization of rare pyrite, sphalerite and galena. Riverside’s best samples returned 12.5 g/t Au in sandstone and 8.5 g/t Au in rhyolitic dike material. Nineteen of the rock chip samples returned over 0.3 g/t Au. The extent of the mineralization along strike has not been established, but recent work suggests that the vein system extends to the northwest onto the Cecilia 2 concession.
- Cruz I and II are located to the north of the Cecilia 1 concession along and near a major northwest trending corridor that extends for at least 4 km. Geochemistry from soil sampling shows anomalous Te, Au, Pb, Zn and Cu, suggesting that Cruz I and II could be located within the base-metal horizon of an epithermal system. In the field, mineralization is associated with veins and stockwork and alteration zones up to 100 m wide with pervasive, widespread sericitic and silica alteration; sulphides are rare but noted in this area. At Cruz I, ten samples were collected with four samples returning 0.1 to 0.5 g/t Au.
- Magallanecito is an additional rhyolitic dome similar to Cerro Magallanes. Results from sampling highlights a high correlation between gold and silver making this target a priority for additional groundwork.
Property Option Terms:
In July 2020, Carlyle signed an option to purchase agreement with Riverside Resources Inc. (TSXV: RRI) to acquire 100% interest in the Cecilia project by making the following cash payments and share issuances:
In July 2020, Carlyle signed an option to purchase agreement with Riverside Resources Inc. (TSXV: RRI) to acquire 100% interest in the Cecilia project by making the following cash payments and share issuances:
Vesting Date |
No. of Special Warrants Vested/Converted |
12 months from Closing |
500,000 |
18 months from Closing |
500,000 |
24 months from Closing |
500,000 |
30 months from Closing |
500,000 |
36 months from Closing |
1,000,000 |
Total: |
3,000,000 |