Baza, Spain
The Company has entered into an Option Agreement with AuEx Ventures, Inc. (XAU) to earn a 70% interest in the Baza property in south east Spain. This project offers strong potential for discovery of one or more significant gold and copper deposits as the area exhibits characteristics associated with either Iron Oxide Copper Gold (IOCG) deposits or the Kansanshi gold–copper deposit in Zambia.
The most advanced prospect area identified to date within the project area has yielded values in rock samples ranging up to 20.0 g/t gold and up to 10% copper over a 2km strike length as identified so far. The Company believes this is a unique opportunity to explore a property with widespread indications of hosting a large mineralized system that has not been subject to modern exploration methods.
Significant quantities of gold and copper are found in many samples taken from various small iron mine workings and dumps scattered over the entire 25 kilometer length of the project area. Currently two areas have been identified that as ready for a first pass drill test in the first quarter of 2010. A ground magnetic survey has been completed over these locations and the results were supplemented with geochemistry and geologic mapping to assist in defining drill targets. A larger airborne survey designed to cover the entire project area is in the planning stages and will be initiated in the second quarter of 2010.
Geologic Discussion
Characteristics associated with Kansanshi type copper-gold deposits or possibly Iron Oxide Copper Gold (IOCG) deposits are found within the region and localized areas. However the style of mineralization remains open to debate. Previous workers based the IOCG model interpretation on the presence of abundant iron-rich carbonate gangue, chalcopyrite, feldspar-stable alteration, and the presence in the greater district of hypogene specular hematite and magnetite (Bedell and Parratt). Yet they also noted that mineralization is not completely typical of the IOCG model. According to Murray Hitzman, who visited the property in June of 2009, the area has an apparent magmatic-related trace element suite present and, due to the lack of extensive hydrothermal alteration and significant iron oxides, it suggests that the potential model may be Kinsanshi style (~200Mt, 1.1% Cu, 0.16 g/t Au) which occurs as a bulk tonnage deposit in albitized metasedimentrary rocks around high-grade chalcopyrite-quartz-carbonate veins.
The project is in a region that was historically mined for iron. The last iron mine closed in 1992 but there are no records of copper and gold being exploited. Significant quantities of gold and copper are found in many samples taken from various small mine workings and dumps scattered over the entire 25 kilometer length of the project area, suggesting that both commodities were not recovered during any of the historic periods of small scale mining activity. Currently two areas have been identified, Cerro del Gallo and El Valenciano, that with some additional field work will be drill ready by first quarter of 2010. The most advanced prospect area, Cerro del Gallo has yielded gold and copper values in rock samples ranging from 1.53 g/t Au and 0.33% Cu over 1.2 meters to 6.8 g/t Au, and 1.86% Cu over 3.4 m from mineralized structures and prospects along a 2.5 km strike length.Individual rock chip samples have returned gold values up to 20.0 g/t and copper values up to 10%. Gold and copper mineralization has been identified along a strike length of 1000 meters in the El Valenciano area. Analyses from a first pass of limited sampling returned copper values ranging from 1.25% to 3.12% and gold that returned 1.42 to 9.18 grams over widths from 1 to several meters. Additional sampling has recently been submitted for analyses and results are pending.
Due to the large size of the property and the number of areas that have significant amounts of mineralization at surface, drilling programs will be conducted in several phases. The first phase of drilling will be focused on testing near surface gold/copper targets at the main two areas identified. A ground magnetic survey has been completed over Cerro del Gallo which will supplement the geochemistry and geologic mapping to assist in defining drill targets. Additional geologic mapping and sampling in the area of El Valenciano is being used to guide the first pass of drilling in this area. A larger airborne survey designed to cover the entire project area is in the planning stages and is planned for the latter part of the second quarter of 2010.
