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Mexico Property
Nuevo Milenio Gold-Silver Project
The 100% owned Nuevo Milenio encompasses 2,612.50 hectares (Ha) and is located in Nayarit State, Mexico. Nuevo Milenio is a low sulphidation, epithermal precious metal prospect containing silver-gold mineralization in quartz vein and quartz stock work zones.
Property Ownership
Nuevo Milenio originally consisted of 4 lots encompassing 6927.8482 hectares and was denounced in February 2000 by Arnoldo Carrera Gamboa on behalf of Cream Minerals de Mexico. Titles to the Lots were received in February 2001 with the agreements to transfer the Lots to Cream Minerals de Mexico signed in 2003 and registered with the Department of Mines with Cream Minerals de Mexico as beneficiary. In June 2005 an application to reduce Nuevo Milenio Fraccion 1 and to drop CMM II was filed with the Department of Mines. The remaining Lot along with small concessions within Nuevo Milenio that have been acquired since comprise the 2,612.50 Ha's. Cream owns 100% of Nuevo Milenio. There are no NSR's or other obligations on the Property. The only costs to carrying the Property are the property taxes which are due and payable in January and July. Currently the property taxes are approximately $USD60,000.00 per year.
Location, Infrastructure and Climate
Nuevo Milenio is located in the Municipalities of Xalisco and Santa Maria del Oro, Nayarit, 20 km as the crow flies southeast of Tepic within the area of Ejido of El Refugio, Trigomill, Pantanal, and La Curva. The property is readily accessible by car from Tepic being 27 kms driving distance, 24 kms by highway and paved secondary roads and 3 kms by dirt road.
Tepic is the capital of the State of Nayarit and is a major service and supply center with a population of 300,000 located in an agricultural region. Rental vehicles and heavy machinery are available for exploration as well as the work force to operate them. Electric power is available at La Curva and other population centers.
Air service, railway, and a well-developed highway system (Highway 15 free and Toll road) to Mazatlan and Guadalajara, Highway 200 to Puerta Vallarta) make the area easily accessible year round. Electric power is available at La Curva and other population centres.
The climate is warm and humid during April to September (18o to 40o C). June to October is the rainy season during which frequent afternoon showers render secondary roads difficult to traverse. During October to March, the climate is temperate with cool nights.
Nuevo Milenio Project Setting
Nuevo Milenio is a low sulphidation, epithermal precious metal prospect containing silver-gold mineralization in quartz vein and quartz stock work zones. The Project is hosted by a sequence of intermediate to felsic lithic tuffs, ash tuffs, ash flows and breccias within a large collapsed caldera setting. The collapsed caldera is set in an area of Micocene volcanics. Younger rhyolite domes and basalt vents define volcanic centres along the Caldera rim. Three principal northwest trending zones have been identified on the property they being; Veta Tomas - Dos Hornos, Once Bocas North - Once Bocas South and Chacuaco - Cafetal.
Exploration History
Cream Minerals was denounced (staked) by a Mexican national in 2000. In 2001 the Property was transferred to Cream Minerals Mexican subsidiary Cream Minerals de Mexico de C.V de S.A.. The Company began exploration work at Nuevo Milienio in 2001. Since that time Cream's exploration work has identified three zones of silver-gold mineralization which trend North West-South East; Veta Tomas-Dos Hornos, Once Bocas North-Once Bocas South, Veta-Olvidada and Chacuaco-Cafetal.
Exploration work was conducted at Nuevo Milenio until early 2005 at which time work was suspended. In 2006 following a comprehensive review of exploration data and a re-evaluation of the geological model exploration work commenced. Three exploration drilling programs have been conducted on Nuevo Milenio. The first was conducted in 2003, the second was conducted in 2006/2007 and the third and last to date was carried out in 2011 for a total of 31,537 metres in 149 drill holes. The first two drill programs targeted exploration, while the third program was comprised of 13,500 metres of in-fill drilling and 6,792 metres of exploration drilling.
In addition to the above exploration work in July 2009, the Company entered into an option agreement with Roca Mines Inc. ("Roca") that would have allowed Roca to earn up to a 70% interest in the Project. In order to acquire a 50% legal and beneficial interest in the Project, Roca was to spend a cumulative US$12,000,000 for exploration work on the property by July 24, 2013. On July 22, 2010, Roca notified the Company that it was not proceeding with the option agreement and the agreement was terminated.
Nuevo Milenio Project Setting
Nuevo Milenio is a low sulphidation, epithermal precious metal prospect containing silver-gold mineralization in quartz vein and quartz stock work zones. The Project is hosted by a sequence of intermediate to felsic lithic tuffs, ash tuffs, ash flows and breccias within a large collapsed caldera setting. The collapsed caldera is set in an area of Micocene volcanics. Younger rhyolite domes and basalt vents define volcanic centres along the Caldera rim. Three principal northwest trending zones have been identified on the property they being; Veta Tomas - Dos Hornos, Once Bocas North - Once Bocas South and Chacuaco - Cafetal.
Geology
The Nuevo Milenio Property is located in an area of Mexico that is included in the Sierra Madre Occidental Geological Province which extends from the Mexico US border to Guadalajara. Magmatic activity, which includes the emplacement of intrusions into the upper crust as well as eruptive volcanic activity, occurs as a result of the subduction of the Pacific (Faralon) Plate under the North American Plate. The Pacific Plate descends at an approximately 50 degree angle moving lower at the rate of 3-4 cm. per year. The province is adjoined to the south-west by the Jalisco Block, a segment of crust bordered by the Pacific Plate to the west and a series of pull-apart basins (grabens or rifts) to the northeast and south east. The pull-apart activity has been responsible for detaching the Jalisco Block from the North American Plate, and now acts as a separate floating segment of crust bordered by the Colima rift to the east and the Tepic-Zacoalco rift to the North. The grabens are controlled by steeply dipping faults which along with related structures act as important controls on the development of gold and silver bearing vein systems. The Sierra Madre Occidental Geological Province ends a short distance south against the east-west trending Trans-Mexican volcanic belt which is of a similar age.
Two major volcanic-magmatic periods occured in this area of Western Mexico. One is an older sequence of granodiorite intrusions and approximately coeval rhyolitic ash-flows tuffs ranging in age from 114 Ma to 70 Ma (Cretaceous to Eocene) and a younger bimodal sequence which is 37 Ma to 18 Ma (Oligocene to mid-Miocene). The younger sequence is primarily rhyolitic with lesser basalt.
The Tepic area is overlain by the young volcanics of the Trans Mexican Volcanic Belt. The Nuevo Milenio property is a low sulphidation, epithermal precious metal prospect containing gold-silver mineralization in quartz veins and in quartz stockwork zones within an area of Miocene volcanics situated in a collapsed caldera structure.
Mineralization
Each of the known mineralized zones can be traced for more than 1000 m's in a northwest-southeast trend. The mineralization consists of narrow high grade veins with lower grade halos made up of quartz veinlets forming a stockwork. The three mineralized zones, Dos-Hornos/Veta Tomas (Dos Hornos 1, Dos Hornos 2 and Veta Tomas), Once Bocas North/Once Bocas South and Chacuaco-Cafetal are known to have lengths of over a kilometre and widths of up to 200 m's. A portion of the width is of economic interest and seems to be continuous for the length of the zone. Diamond drilling has demonstrated the continuity of the above mentioned zones and the Dos Hornos/Veta Tomas and Once Bocas zones are recognized as being located on a single controlling structure. Therefore Dos Hornos 1, Dos Hornos 2 and Veta Tomas, and Once Bocas North and Once Bocas South are individually segments along the structure which are defined by economically interesting gold and silver mineralization. Continuity of the structure are evident. Barren quartz float is commonly found between the structures. The reason for the breaks in the structures is not known at this time, possibly localization of material values within the structure or erosion of the economically interesting section of the main controlling structure. The structure extends beyond its explored length and passes under the younger volcanic tuffs and flows where little exploration work has been conducted. The economically interesting mineralization occurs in steeply dipping veins and stockworks.
Faulting has been observed in drill core and surface structures. A significant fault offset along an east, northeast fault is apparent between Dos Hornos 1 and Dos Hornos 2 with an apparent lateral offset of up to 60 m. A fault truncated a vein at the north end of Chacuaco though its displacement ins unknown at this time. Substantial faulting is evident in some drill holes however the orientations are not clear at this time.
Resource Estimate
The Independent Mineral Resource Estimate replaces in its entirety all previous resource estimates filed by Cream and the previous resource estimates can no longer be relied upon. The Current Mineral Resource is contained in an independent technical report filed on SEDAR on March 25, 2013 in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (the "2013 Report"). The 2013 Report replaces the technical report filed on October 2, 2012, (the "2012 Report").
Summary of Nuevo Milenio Project Mineral Resource Estimates
(using grade cut-off equivalent to US $75/tonne Au-Ag value)
Zone and
Resource Class |
Tonnes |
Thickness
(avg. m.) |
Average Grade |
Equivalent Silver Grade |
| g Ag/t |
g Au/t |
Ageq (g/t) |
| Dos Hornos 1 |
| Indicated Resources |
268,116 |
4.80 |
164 |
0.66 |
198 |
| Inferred Resources |
80,594 |
4.60 |
155 |
0.75 |
194 |
| Dos Hornos 2 |
| Indicated Resources |
335,887 |
7.92 |
124 |
1.00 |
175 |
| Inferred Resources |
183,107 |
5.79 |
107 |
1.00 |
164 |
| Veta Tomas |
| Indicated Resources |
278,967 |
5.70 |
173 |
0.87 |
199 |
| Inferred Resources |
156,185 |
4.76 |
126 |
0.82 |
166 |
| Once Bocas North |
| Indicated Resources |
223,783 |
8.95 |
112 |
0.63 |
145 |
| Inferred Resources |
117,949 |
9.68 |
119 |
0.70 |
155 |
| All Zone Segments |
| Indicated Resources |
1,106753 |
6.81 |
144 |
0.81 |
181 |
| Inferred Resources |
537,835 |
6.17 |
122 |
0.84 |
167 |
Notes:
- Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
- The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
- S.G. of 2.65 tonnes/m3 was used.
- Tonnage and contained Ag and Au are rounded to nearest thousand or thousandth. Totals may not add up due to rounding
|
Sensitivity Analysis
Sensitivity analysis demonstrates that the resources are not greatly affected by $10 value changes in the cut-off grade. This is a consequence of a general lack of shoulders to the mineralization on most sections. It is possible that a substantial reduction of the cut-off grade to, for example $50 of gold and silver value would bring additional sub-zones into Mineral Resources, however WGM believes that it would be difficult to mine such grades at a profit. Additional resources might be forthcoming if those portions of the deposit amenable to open-cut mining were modelled separately, however it is WGM's view that such operations would not substantially alter the current resource total because the average true thickness of all zones contributing to the base case Mineral Resources is in excess of 6 m.
History
In 1524 the Spanish Conquistadores arrived in Tepic and soon after began exploring for silver and gold. The first mine discovered was at Jalla, followed by Espiritu Santa in 1560, Mina Miravalle in 1650, the District of Compostela and Santa Maria del Oro. These Mines contained very high grade silver zones with grades up to 50% silver. The Huicillia Mines were explored by Arsarco during the mid 1930's.
The old mines, trails, tahonas, dams etc. date back to the period before the War of Independence (1810). The 30 years following the war were characterized by 30 years of conflict with the indigenous peoples. The majority of these conflicts were carried out to the north of Guadalajara including a large portion of Nayarit State. These were conflicts on a large scale, at one point the indigenous fighters threatened to overrun Guadalajara the capital of Mexico. Following the the Mexican revolution was a period of general lawlessness in Nayarit State including the now Tepic area. Bands of marauding soldiers, bandits and revolutionary fighters roamed the country side. The miners and farmers left the region to avoid the violence and by 1920, when peace returned to Nayarit, all mining sites were abandoned and overgrown with some caved. Many of the mining records covering the period prior to the War of Independence were lost during the period of violence.
The Nuevo Milenio area was first worked by the Spaniards prior to 1810. Ore was produced from several mineralized zones but mining was restricted to only the high-grade zones and hauled by mules to several treatment sites. A Hacienda Metallurgico (Tahonas and Planilla) and small smelters existed in the area. Two Dams, the first at Arroyo Guadalupana and the second at Arroyo Chacuaco were constructed to secure water year round for milling of ore and to support mine workers and other residents. The main mining activities in the area stopped during the War of Independence against Spain beginning in 1810.
The increase of gold prices in the 1930's brought gambusinos back to the area. Numerous small lots were denounced for Opals however limited gold and silver exploration and mining was conducted. There is very little evidence of new mine workings for gold and silver which originated during this period.
Qualified Person
Al Workman, P.Geo., Vice-President of WGM, is responsible for the Current Mineral Resource estimate for the Nuevo Milenio Project. Mr. Workman and senior WGM Associate, Mr. Derek McBride, P.Eng., are the Independent Qualified Persons within the meaning of National Instrument 43-101 responsible for authoring the 2013 Report. The technical portions of this news release have been reviewed by Al Workman for accuracy to ensure that the disclosure is complete and not misleading.
Mr. Ferdinand Holcapek, P. Eng., Director and Administrator General, Cream Minerals de Mexico, S.A. de CV, has supervised exploration programs on the Nuevo Milenio Project. He prepared or supervised the preparation of the information that forms the basis for the technical disclosure herein regarding Nuevo Milenio and was the Company's "Qualified Person" for the purpose of National Instrument NI 43-101 with respect to Nuevo Milenio.
Metallurgical Testing
As set out below, the metallurgical test results were confined to four samples and are therefore too small a sample size to provide an accurate assessment of the metallurgy of Nuevo Milenio. Accordingly, the test results set out below should not be relied upon in any way for investment purposes. The information below is presented for information purposes only and for completeness given that the information has been publicly disclosed by Cream.
Cream Minerals has conducted four metallurgical tests on samples obtained from Nuevo Milenio. The tests were conducted by Inspectorate America Corporation. The best results were obtain by a combination of Flotation with one cleaning circuit followed by cyanidation of the flotation tailings which yield a recoveries of 94% for gold and 90% for silver. These are encouraging test results and indicate the possibility of high gold and silver recovery rates for Nuevo Milenio assuming ore is processed through a mill. Lower recovery rates would apply if a heap leach operation were employed.
The purpose of the tests was to obtain initial results on gold and silver recovery on samples obtained from Nuevo Milenio and to establish parameters for further detailed metallurgical tests. The samples were taken from fresh and partially oxidized mineralized zones. Test materials were collected from historical Spanish workings on Dos Hornos 1 (cross-cut adit 4, Shaft 5 Sublevel 3), Veta Tomas (Shaft 12) and Once Bocas (Stope).
The initial Metallurgical Tests consisted of Cyanide Bottle roll tests, a Scoping Flotation test with one Cleaner circuit, followed, a Cyanide Leach of the flotation tailings and a Thiosulfate Leach Test.
The following represent the average recovery for each test completed:
- Cyanide Bottle Roll Test - 24 hours: Gold 89% Silver 62%
Cyanide Bottle Roll Test - 72 hours: Gold 94% Silver 78%
- Scoping Flotation Test, one cleaning circuit: Gold 66% Silver 81%
- Cyanide Bottle Roll Test of Flotation Tails: Gold 88% Silver 56%
- Scoping Flotation and Cyanidation of Tailings: Gold 94% Silver 90%
- Thiosulfate Leach: Gold 21% Silver 76%
The tests results show that mineralization from Nuevo Milenio is amenable to both, Cyanide leach and or Flotation recovery techniques, followed by the Cyanide leach of flotation tailings.
Additional tests are required to determine the effect of a Gravity circuit on total gold recovery and to reduce retention time in the Cyanide leach circuit and or enhance gold recovery in the flotation tests. Further tests would include a second or third cleaning circuit in the flotation test to increase silver recovery and a gravity circuit to scalp off coarse gold. These adjustments may be sufficient to upgrade gold and silver recovery to an acceptable level without the Cyanidation of flotation tailings. The Leach results are based on a 72 hour leach cycle from composite underground channel samples. The average particle size was 80% at 72 micrometers (passing 200 mesh screen). Average consumption of Cyanide (NaCN) was 0.92 kg/ton, average consumption of Lime was 1.68 kg/t.
The tests results show that mineralization from the Nuevo Milenio is amenable to both, Cyanide leach and or Flotation, followed by Cyanide leach of flotation tailings.
Metallurgical Tests - Summary of Samples
| Sample No. |
Location |
Weight Kg |
| E687746 -47 |
X-Cut Adit 4 N.W |
18.60 |
| E687748 - 49 |
Pozo-5 Level 3 NW & SE |
33.20 |
| E687750 |
Pozo -12 - Veta Tomas surface |
17.00 |
| E687751 |
Stope Internal Once Bocas |
13.40 |
Assays Employed to Establish Head Grade for Metallurgical Tests
| Location |
Au
g/t |
Ag
ppm |
S total
% |
Sb
ppm |
As
ppm |
Ba
ppm |
Bi
ppm |
Cd
ppm |
Ca
ppm |
| Pozo 5 Comp |
2.95 |
148.6 |
0.08 |
18 |
44 |
517 |
2 |
0.2 |
366 |
| Shaft 12 comp |
1.44 |
43.7 |
0.12 |
17 |
54 |
44 |
2 |
0.2 |
232 |
| Adit 4 comp |
1.44 |
266 |
0.06 |
12 |
62 |
336 |
2 |
0.2 |
460 |
| Stope Once Bocas |
1.18 |
195.5 |
0.03 |
16 |
19 |
475 |
2 |
0.2 |
521 |
| |
Cu
ppm |
Fe
ppm |
PB
ppm |
Mg
ppm |
MN
ppm |
P
ppm |
K
ppm |
Ti
ppm |
Zn
ppm |
| Adit 4 comp |
161 |
22422 |
2966 |
1853 |
1837 |
704 |
13319 |
514 |
272 |
| Pozo 5 Comp |
245 |
20937 |
1097 |
1003 |
549 |
1373 |
12261 |
323 |
130 |
| Shaft 12 comp |
27 |
13057 |
132 |
346 |
40 |
<100 |
993 |
548 |
45 |
| Stope Once Bocas |
193 |
17679 |
1093 |
891 |
1548 |
520 |
19442 |
596 |
175 |
Cyanide Bottle Roll Test - 72 hours Leach Cycle
| Location |
80% size |
NaCl |
Measured Head |
Calculated Head |
Extraction |
Residue |
Consumption Kg/ t |
| Sample |
Micron |
g/l |
Au
g/t |
Ag
g/t |
Au
g/t |
Ag
g/t |
Au
% |
Ag
% |
Au
g/t |
Ag
g/t |
NaCl |
Lime |
| x- cut Adit 4 Dos Hornos 1 |
74 |
1 |
1.44 |
265 |
1.72 |
237.8 |
91.3 |
66.7 |
0.15 |
79.3 |
0.92 |
1.5 |
| Pozo 5, Dos Hornos 1 |
74 |
1 |
2.95 |
148.9 |
3.56 |
127.8 |
96.1 |
86.6 |
0.14 |
17.1 |
0.91 |
2.34 |
| Pozo 12 composite |
69 |
1 |
1.44 |
43.7 |
1.63 |
52 |
95.1 |
83.1 |
0.08 |
8.8 |
0.79 |
0.92 |
| Once Boca Spanish Stope |
77 |
1 |
1.18 |
195.5 |
1.36 |
174.7 |
93.4 |
74.1 |
0.09 |
45.3 |
1.05 |
1.98 |
Scoping Flotation Test - 80 %~- 74 micron, 1 cleaning circuit
| Test # CF - 1 Dos Hornos 1 |
weight |
weight |
Assays |
Assays |
Sulfur |
Distribution |
Sulfur |
| Pozo 5 , Sublevel 3 composite 80 %~- 74 micron |
g |
% |
Au g/t |
Ag g/t |
total |
Au % |
Ag % |
total % |
| 1rst Cleaner Concentrate |
36.80 |
1.90 |
96.75 |
5001.5 |
0.71 |
63.5 |
69.3 |
28.5 |
| 1rst Cleaner Tails |
175.30 |
9.10 |
3.38 |
124.7 |
0.08 |
10.6 |
8.2 |
15.3 |
| Total Flotation Concentrate |
212.10 |
11.00 |
19.58 |
970.9 |
0.19 |
74.0 |
77.5 |
43.9 |
| Final Tails |
1714.20 |
89.00 |
0.85 |
34.9 |
0.03 |
26.0 |
22.5 |
56.1 |
| Calculated Head |
1926.30 |
100.00 |
2.91 |
138.0 |
0.05 |
100.0 |
100.0 |
100.0 |
| Measured Head |
|
|
2.95 |
148.9 |
0.08 |
|
|
|
| CF - 2 Veta Tomas |
weight |
Assays |
Sulfur |
Distribution |
Sulfur |
| Pozo 12 composite 80 % ~- 74 micron |
g |
% |
Au g/t |
Ag g/t |
total % |
Au % |
Ag % |
total % |
| 1rst Cleaner Concentrate |
30.4 |
1.6 |
36.39 |
2278.5 |
0.59 |
34.8 |
77.7 |
9.3 |
| 1rst Cleaner Tails |
295.1 |
15.3 |
3.54 |
0.l21 |
0.21 |
32.9 |
15.5 |
32.2 |
| Total Flotation Concentrate |
325.5 |
16.8 |
6.61 |
255.1 |
0,25 |
67.6 |
93.1 |
41.5 |
| Final Tails |
1607.1 |
83.2 |
0.64 |
3.8 |
0.07 |
32.4 |
6.9 |
58.5 |
| Calculated Head |
1932.6 |
100.0 |
1.64 |
46.1 |
0.1 |
100 |
100 |
100 |
| Measured Head |
|
|
1.44 |
43.7 |
0.12 |
|
|
|
| CF - 3 x- cut Adit 4 Dos Hornos 1 |
weight |
Assays |
Sulfur |
Distribution |
Sulfur |
| Adit 4 composite 80 %~- 74 micron |
g |
% |
Au g/t |
Ag g/t |
total |
Au % |
Ag % |
total % |
| 1rst Cleaner Concentrate |
23.6 |
1.2 |
42.58 |
12738.7 |
3.49 |
36.2 |
56.8 |
44.3 |
| 1rst Cleaner Tails |
399.1 |
20.6 |
1.29 |
172.3 |
0.07 |
18.5 |
13 |
15.0 |
| Total Flotation Concentrate |
422.7 |
21.8 |
3.6 |
874.5 |
0.26 |
54.7 |
69.7 |
59.2 |
| Final Tails |
1518.3 |
78.2 |
0.83 |
105.7 |
0.05 |
45.3 |
30.3 |
40.8 |
| Calculated Head |
1941 |
100 |
1.43 |
273.1 |
0.10 |
100.0 |
100.0 |
100.0 |
| Measured Head |
|
|
1.44 |
266.0 |
0.06 |
|
|
|
| CF - 4 Once Boca Spanish Stope |
weight |
Assays |
Sulfur |
Distribution |
Sulfur |
| Stope composite 80% ~- 74 micron |
g |
% |
Au g/t |
Ag g/t |
S total |
Au % |
Ag % |
Stotal % |
| 1rst Cleaner Concentrate |
37 |
1.9 |
27.44 |
6696 |
0.39 |
47 |
68.7 |
22.7 |
| 1rst Cleaner Tails |
221.1 |
11.4 |
1.91 |
228.4 |
0.07 |
19.5 |
14 |
24.4 |
| Total Flotation Concentrate |
258.1 |
13.3 |
5.57 |
1155.5 |
0.12 |
66.5 |
82.7 |
47.1 |
| Final Tails |
1681.9. |
86.7 |
0.43 |
37.2 |
0.02 |
33.5 |
17.3 |
52.9. |
| Calculated Head |
1940.0 |
100.0 |
1.11 |
186.0 |
0.03 |
100.0 |
100.0 |
100.0 |
| Measured Head |
|
|
1.18 |
195.5 |
0.03 |
|
|
|
Average Extraction by floatation: Au: 66%, Ag: 81 %
Cyanide Bottle Roll Test of Flotation Tailings - 96 Hour Retention
| Cyanidation of Flotation Tailings |
Particle size |
NaCN |
Assay Final Flot Tails |
Calculated Head |
Residue |
Exteraction |
Consumption kg/t |
| |
80% micron |
g/l |
Au
g/t |
Ag
g/t |
Au
g/t |
Ag
g/t |
Au
g/t |
Ag
g/t |
Au
% |
Ag
% |
NaCn |
Lime |
| CF- 1 Deos Hornos 1, Pozo 5 comp |
83 |
1.0 |
0.85 |
34.9 |
0.98 |
38.6 |
0.14 |
13.30 |
85.7 |
65.5 |
2.3 |
1.66 |
| CF- 2 Pozo 12 Veta Tomas composite |
85 |
1.0 |
0.64 |
3.8 |
0.84 |
8.6 |
0.06 |
5.50 |
92.8 |
35.8 |
1.86 |
0.62 |
| CF - 3 x- cut Adit 4 Dos Hornos 1 |
86 |
1.0 |
0.83 |
105.7 |
1.01 |
79.5 |
0.13 |
35.50 |
87.2 |
55.3 |
2.31 |
1.11 |
| CF - 4 Once Boca Spanish Stope |
82 |
1.0 |
0.43 |
37.2 |
0.49 |
33.6 |
0.06 |
11.10 |
87.7 |
66.9 |
1.94 |
1.62 |
Average Recovery all Samples of Flotation Tails: Au: 88%, Ag: 56%
Flotation Recovery plus Cyanidation of Tailings
| Flotation Recovery plus Cyanidation of Tailings, |
Measured Head Sample |
Calculated Head |
Residue |
Total Extraction |
| |
Flotation |
Flotation |
NaCN Tailings |
Calculated Head |
| CF - 1 Dos Hornos 1, Pozo 5, Sub Level 3 |
Au g/t |
Ag g/t |
Au g/t |
Ag g/t |
Au g/t |
Ag g/t |
Au % |
Ag % |
| Total Recovery |
2.95 |
148.6 |
2.91 |
138.0 |
0.14 |
13.30 |
95 |
90 |
| CF - 2 Veta Tomas |
|
|
|
|
|
|
|
|
| Total Recovery |
1.44 |
43.7 |
1.64 |
46.1 |
0.06 |
5.50 |
96 |
88 |
| CF - 3 x- cut Adit 4 Dos Hornos 1 |
|
|
|
|
|
|
|
|
| Total Recovery |
1.44 |
266.0 |
1.43 |
273.1 |
0.13 |
35.50 |
91 |
87 |
| CF - 4 Once Boca Spanish Stope |
|
|
|
|
|
|
|
|
| Total Recovery |
1.18 |
195.5 |
1.11 |
186.0 |
0.06 |
11.10 |
95 |
94 |
Average recovery Flotation plus Cyanidation of Tailings: Au: 94 %, Ag: 90 %
Thiosufate Leach Test Leach duration 4 hours
| Location |
80% size |
NaCl |
Ammonium |
Sodium |
CuSO4 |
Measured Head |
Calculated Head |
Extraction |
Residue |
Consumption |
| Sample |
Micron |
g/l |
Thiosulfate
Kg/ t |
Sulfite
Kg/ t |
.5H2O
Kg/ t |
Au g/t |
Ag g/t |
Au g/t |
Ag g/t |
Au % |
Ag % |
Au g/t |
Ag g/t |
NH4OH
Kg/ t |
| x- cut Adit 4 Dos Hornos 1 |
76 |
1 |
20 |
7.5 |
5 |
1.44 |
265 |
1.49 |
320.2 |
28.1 |
72.6 |
1.07 |
86.8 |
0.27 |
| Pozo 5, Dos Hornos 1 |
73 |
1 |
20 |
7.5 |
5 |
2.95 |
148.9 |
2.41 |
173.4 |
21.8 |
79.6 |
1.88 |
35.3 |
1.80 |
| Pozo 12 composite |
72 |
1 |
20 |
7.5 |
5 |
1.44 |
43.7 |
1.54 |
59.8 |
22.6 |
77.1 |
1.19 |
13.7 |
0.27 |
| Once Boca Spanish Stope |
75 |
1 |
20 |
7.5 |
5 |
1.18 |
195.5 |
1.34 |
211.0 |
11.3 |
74.4 |
1.19 |
54.1 |
1.80 |
Average Result for Thiosulfate Leach: Au: 21%, Ag: 76%
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the updated resource estimate and independent technical report on the Company's Nuevo Milenio's silver project filed on the date hereof (the "Report"); the BCSC review of the Report; resolution of the BCSC's issues and comments with the Report; filing a complaint NI 43-101 technical report; progress report press releases. Information concerning mineral reserves, measured mineral resources, indicated mineral resources and inferred mineral resources also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined.
In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things, the geological, metallurgical, engineering, financial and economic advice that the Company has received is reliable, and is based upon practices and methodologies which are consistent with industry standards; and the continued financing of the Company's operations.. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: fluctuations in metal prices and currency exchange rates; conditions in the financial markets and overall economy may continue to deteriorate; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of the metallurgical test work; the uncertainty of the estimates of capital and operating costs, recovery rates, and estimated economic return; the need to obtain additional financing and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals.; the ongoing resolution of the issues raised by the BSCS may have a material adverse effect on the Company's financial condition and share price and may affect the Company's ability to raise additional capital on terms acceptable to the Company, or at all.
A more complete discussion of the risks and uncertainties facing the Company is disclosed in the Company's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. |
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