VETA GRANDE PROJECT, TETIPAC, GRO.

Transcription

1 VETA GRANDE PROJECT, TETIPAC, GRO. 1

2 INTRODUCTION Itislocatedinthenorthern portion of the state of Guerrero, in the municipality of Tetipac, in the vicinity of the village of Noxtepec, 25 km in straight line to the northwest from Taxco, Guerrero, and 10 kilometers in straight line to the southeast from Zacualpan, Estado de Mexico. It is positioned right in the middle of the train of mineralization that joins the famous and productive mining districts of Taxco and Zacualpan, in immediate vicinity with the ancient centers of mining production Xitinga San Mateo, Chontalpan, and Dardanela La Argentina. 2

3 INTRODUCTION VES CAPITAL, VETA GRANDE project, consists of four mining concessions or claims: "Veta Grande", 9 hectares, "Roliti", 171 hectares, "Tres Marias", 50 hectares and "Myriam", 140 hectares, with a total surface area of 370 hectares. 3

4 GENERAL INFORMATION The Mexican Geological Service mentions in its Guerrero state monograph, that in Taxco, historically since the colonial era, there have been produced more than 9 million kilos of silver, in addition to productions of gold lead zinc copper, being one of the world's largest silver producing districts. There are no clear records of production for Zacualpan in the colonial era, but in modern times it is known that it has produced, between , around 17 million ounces of silver mainly by Industrias Penoles, and subsequently Impactsilver produces continuously since 2004 to date; for reference, only in 2013 Impactsilver was produced around 680,000 ounces of silver, plus by products of lead and zinc. There are two flotation mills installed in the vicinity of the Veta Grande project: Taxco of Industrial Minera Mexico, with a capacity of 3000 t /d, inactive; and Zacualpan of Impactsilver, with capacity of 500 t/d, active. 4

5 GENERAL INFORMATION Within the properties of VES CAPITAL, there are several old mining workings that show formal veins with high grades of silver with gold, with high possibilities to be part of rich oreshoots, as well as an active open pit of barite exploitation. 5

6 GENERAL INFORMATION The VES CAPITAL VETA GRANDE project has very good accessibility and infrastructure (electricity, water, communications, labor, etc.), it is located just two hours drive from Mexico City, with paved road almost up to the mining works, it is sited on privately owned land, and there are many facilities for obtaining the necessary permits. There are no insecurity problems that affect the current mining activities, and have good relations with the local residents and officials, who are in favor of formal mining activities on an industrial scale. 6

7 GENERAL INFORMATION 7

8 HISTORY The oldest formal mining works of the region were in Taxco and Zacualpan, and dates from the early 1500 s, when the Spanish colonizers arrived to this place by following to the indigenous Aztecs who wore ornamental objects of gold. The oldest mining works in the village of Noxtepec, within the properties of VES CAPITAL, dates back possibly in the late 1800's and early 1900 s. The most recent mining works in Noxtepec, within the properties of VES CAPITAL, were made in the year 1978, when Mr. Tereso Vaquero, a local small miner, embarked 50 tons of selected high graded ore to the Taxco mill. 8

9 HISTORY In 1988 and 1989, the Mexican Geological Service conducted preliminary studies. 9

10 HISTORY In February 1997 there was a private study on thegeologicalknowledgeofthebaritesedimentary bodies. In February 2013, Minera La Negra/Aurcana Corporation conducted the geology of Roliti, Miryam and Tres Marias, claims. In late 2013 and early 2014, VES CAPITAL carried out three diamond drill holes on the bodies of barite that are located within the Veta Grande claim, with the support of SRK Consulting Mexico in the geological description and sampling. 10

11 GEOLOGY & POTENTIAL The study area is located within the Teloloapan tectonostratigraphic Subterrene, which is a marine intra arc vulcanosedimentary sequence, late Jurassic to early Cretaceous, deformed and metamorphosed into low grade, green schist facie, locally composed by an andesite and black shale intercalation rock package. The economic mineralization is structurally controlled by regional geological faults of general orientation NW SE, and occurs as fissure fillings of epithermal vein type, equal to the veins of Taxco and Zacualpan. We are talking about at least five formal veins of precious minerals, explored and/or exploited at different times by different companies. 11

12 GEOLOGY & POTENTIAL The Mexican Geological Service, within their studies of 1989 in the Tres Marias claim, estimated tonnage and grade of economic ore adjacent to the old mining works, from more than 100 samples of tunnels and veins outcrops trenching. In addition, besides the principal old workings entrance of The Rosario mine, there are around 2,000 tons of old dumps, which needs to be surveyed and sampled since we can see sulfide mineralization with the naked eye. As a next step, VES CAPITAL has scheduled to carry on surveying, geology and sampling, required to define a new drilling campaign, to test the extensions of the exposed mineral oreshoots and search for new ones. It is believed in at least five thousand meters of diamond drilling, in a first step. 12

13 GEOLOGY & POTENTIAL 13

14 GEOLOGY & POTENTIAL 14

15 GEOLOGY & POTENTIAL In February 2013, Minera La Negra/Aurcana Corporation, inside the Roliti, Miryam and Tres Marias claims, made geology and sampling of 18 old mining works, including 1,427 channel samples, from which the Veta Grande, El Rosario, El Ocote, Encino, and Veta Nueva, are the most notable by their values in Ag and Au. N Muestra Ag gr/ton Au gr/ton Obra N Muestra Ag gr/ton Au gr/ton Obra Obra Lety Veta Grande Obra Veta Grande El Ocote , Veta Grande El Ocote Veta Grande Obra Veta Grande El Ocote Veta Grande El Ocote Veta Grande El Ocote Veta Grande El Ocote Veta Grande El Ocote Veta Grande El Ocote Veta Grande El Ocote Veta Grande El Ocote Veta Grande El Ocote Veta Grande Obra Veta Grande Veta Grande Veta Grande Veta Grande Veta Grande Veta Grande 15

16 POTENTIAL Within the same 2013 field jobs, Minera La Negra/Aurcana Corporation, drilled 1,403 meters in 11 holes; VES CAPITAL is working to obtain the results of drilling, while we already have part of the related geological information. At the end of 2013 and early 2014, VES CAPITAL carried out 311 meters of drilling, distributed in three drill holes, on the Veta Grande barite bodies, located immediately to the west of the same name barite open pit. 16

17 POTENTIAL The Drill hole number two, inclined, intercepted a zone of replacement of barite and silica accompanied by gold and silver values, outside and immediately adjacent to the main bodies of barite, with grades of between g/t Ag, and g/t Au, from the 40 up to 80 meters in depth; this new discovery of silver andgoldassociatedwiththebodies of vulcanosedimentary barite, in large thicknesses of rock, obliges us to make new detailed geological sampling to find its location, taking advantage of the fact that part of this package of mineralized rock would be exposed in the Veta Grande barite open pit, and immediately after conducting metallurgical testing of treatment and recovery. 17

18 POTENTIAL As the terrain is quite fractured and difficult for the diamond drilling, the core recoveries in those first three drill holes were very low, it will be necessary to repeat this drilling, because there is doubt as to whether with the core were also lost other areas of best silver values. We believe that we will succeed in this, and so the next step would be to design two stages of drilling, of at least two thousand meters each, to locate and delineate the mineralized body at the first, and then the following for sizing and start with its economic evaluation. 18