Sonoro Metals Corp., (“Sonoro” or the “Company”) (TSXV: SMO)
(OTCQB: SMOFF) announced today that it has filed National
Instrument 43-101 technical report for its Cerro Caliche gold
project on SEDAR at www.sedar.com, and on the Company’s website at
www.sonorometals.com.
The independent Technical Report titled “NI
43-101 Technical Report on the Cerro Caliche Gold Project, Cucurpe
Mining District of Sonora State, Northwestern Mexico”, dated July,
26, 2019 (the “Technical Report”) was prepared by independent
Qualified Persons, Derrick Strickland, P.Geo., and Robert Sim,
P.Geo., Sim Geological Inc.
Estimate of Mineral Resources for the
Cerro Caliche Project
Category |
Tonnes(000) |
Average Grade |
Contained Metal |
AuEq(g/t) |
Au(g/t) |
Ag (g/t) |
AuEq (koz) |
Au (koz) |
Ag(koz) |
Inferred |
11,470 |
0.545 |
0.495 |
4.3 |
201 |
183 |
1,601 |
Note: The estimates in the above table are
limited inside the $1,500/oz Au pit shell. The base case cut-off
grade is 0.25 g/t gold equivalent (AuEq), where AuEq = Au g/t
+ (Ag g/t x 0.01133). Mineral resources are not mineral reserves
because the economic viability has not been demonstrated. There are
no mineral reserve estimates for the Cerro Caliche project. It is
reasonably expected that a majority of Inferred mineral resources
could be upgraded to Indicated (or Measured) mineral resources with
continued exploration.
Kenneth MacLeod, President and CEO of Sonoro
commented, “The establishment of a maiden estimate of mineral
resources at Cerro Caliche provides a strong foundation from which
potentially to expand the mineralization along strike and at depth
from many of the mineralized zones documented in the Technical
Report. We are pleased to confirm that many of the recommendations
contained in the Technical Report are either being actively
pursued, or will be implemented shortly, including; metallurgical
testing, 3D modelling of the structure, and a 7,000 meter drilling
program comprising diamond drilling and reverse-circulation
drilling to increase the confidence of the known mineralization and
to identify potential expansion of known mineralization.”
Resource Estimate
The estimate of mineral resources is based on a
total of 21,091 meters of reverse circulation drilling in 200
holes. Of these, 10,328 meters in 96 holes were drilled by Sonoro,
plus 7,725 meters in 86 holes were drilled by Corex Gold and 3,038
meters in 18 holes were drilled by Paget Southern, both previous
operators of the Cerro Caliche project. The reported mineral
resources were estimated using a three-dimensional block model with
a nominal block size of 6 x 6 x 5 meters (LxWxH). Drill holes,
collared from surface, penetrate the steeply dipping mineralized
zones to depths of generally within 125 meters below surface but
several holes have intersected gold mineralization to depths
approaching 200 meters below surface.
The resource estimate was generated using drill
hole sample assay results and the interpretation of a geological
model which relates to the spatial distribution of gold and
silver. Interpolation characteristics are defined based on
the geology, drill hole spacing, and geostatistical analysis of the
data. The effects of potentially anomalous high-grade sample data,
composited to 1.5-meter intervals, are controlled using both
traditional top-cutting as well as limiting the distance of
influence during block grade interpolation.
Block grades are estimated using ordinary
kriging and have been validated using a combination of visual and
statistical methods. Mineral resources in the Inferred category
extend for a maximum distance of 100 meters from a drill hole.
The estimate of mineral resources is constrained
within a pit shell to establish reasonable prospects for eventual
economic extraction. The pit shell was generated using the
following projected technical and economic parameters:
- Mining (open
pit)
US$1.75/t
- Processing
US$6.80/t
- G&A
US$1.50/t
- Gold price
US$1,500/oz
- Silver price
US$17.00/oz
- Gold process recovery
72%
- Silver process recovery
30%
- SG
2.50
- Pit slope
50 degrees
- Gold Equivalent calculation
AuEq = Au g/t + (Ag g/t x 0.1133)
- Base case Cut-off grade
0.25 g/t AuEq
Geology
The Cerro Caliche deposit exhibits features that
are typical of low-sulphidation epithermal style deposits.
Mineralized zones are often structurally controlled and extend for
strike lengths of up to 1 km and to depths approaching 200 m below
surface.
Many of the mineralized zones remain “open”
along strike and at depth. Numerous other mineralized zones have
been identified by surface mapping and surface geochemical rock
sampling.
The majority of the rocks that host the mineral
resources at Cero Caliche are highly oxidized and it is likely that
the deposit is amenable to low-cost heap leach extraction methods.
There are several proximal deposits that have similar geologic
characteristics that are currently extracting gold and silver
through heap leach extraction.
Conclusions
Based on the evaluation of the data available
from the Cerro Caliche Project, the authors of the Technical Report
have drawn the following conclusions:
- The Cerro Caliche deposit exhibits
features that are typical of low-sulphidation epithermal style
deposits. Mineralized zones are often structurally controlled and
extend for strike lengths of up to 1 km and to depths approaching
200 m below surface.
- Many of the mineralized zones
remain “open” along strike and at depth. Numerous other mineralized
zones have been identified by surface mapping and surface
geochemical rock sampling.
- Exploration activities conducted by
Sonoro and the previous operators of the property followed industry
standards, and the resulting database is considered to be reliable
to support estimates of mineral resources.
- Drilling to date has outlined an
estimated Inferred mineral resource of 11.5M tonnes at an average
grade of 0.495 g/t gold and 4.3 g/t silver. It is assumed that the
mineral resource is potentially amenable to open pit extraction
methods.
- Preliminary metallurgical test work
has only recently been initiated by Sonoro. The majority of the
rocks that host the mineral resources at Cerro Caliche are highly
oxidized and it is likely that the deposit is amenable to low-cost
heap leach extraction methods. There are several proximal deposits
that have similar geologic characteristics that are currently
extracting gold and silver through heap leach extraction.
- The authors of the Technical Report
are not aware of any known factors related to metallurgical,
environmental, permitting, legal, title, taxation, socio-economic,
marketing or political issues which could materially affect the
mineral resource estimates.
Recommendations
Based on the review of the data provided, the
authors recommend the following next steps to advance the Cerro
Caliche project:
- Conduct a drilling program that includes:
- A 500 m infill drilling program comprising large diameter (PQ)
core to provide valuable structural and mineralization
information.
- A 6,500 m reverse-circulation drilling program to increase the
confidence of the known mineral resource and identify potential
expansion of known mineralization.
- Conduct a detailed metallurgical analysis of the known
mineralized area.
- Review the existing data to integrate the geology, alteration,
observations, and known structure into a 3D model. This will help
target areas for potential expansion.
- Continue to explore for extensions of existing mineralized
zones.
- Drill a series of diamond drill holes in each mineralized zone
to gain additional information related to geologic and
metallurgical characteristics.
- Conduct a suite of cyanide soluble gold assays on a select
suite of samples to better understand the nature and distribution
of soluble gold.
- Attempt to locate the older drilling data generated by
Cambior.
Geologic Description
The 1,350-hectare Cerro Caliche concessions are
located 45 kilometers east southeast of Magdalena de Kino in the
Cucurpe-Sonora Mega-district of Sonora, Mexico. Multiple historic
underground mines were developed in the concession including Cabeza
Blanca, Los Cuervos, Japoneses, Las Abejas, Boluditos, El Colorado,
Veta de Oro and Espanola. Mineralization types of the
Cucurpe-Sonora Mega-district include variants of epithermal low
sulfidation veins and related mineralized dikes and associated
volcanic domes. Local altered felsic dikes cut the mineralized
meta-sedimentary rock units and may be associated with
mineralization both in the dikes and meta-sedimentary rocks.
Host rocks include Jurassic-Cretaceous
meta-sedimentary rock units including argillite, shale, quartzite,
limestone, quartz pebble conglomerate and andesite. Younger
intrusive rock consisting of medium coarse-grained
granodiorite-granite is present in the westerly parts of the
concessions near the historic Cabeza Blanca mine. It is apparent
that veining cuts and pervasively alters the intrusive stock.
Rhyolite occurs in irregular bodies distributed in higher
elevations in the northerly part of the concession, including the
Rincon area, where it occurs as flows, sills, dikes and rhyolite
domes. Part of the rhyolite is mineralized and appears to be
related to epithermal gold mineralization throughout the
property.
Robert Sim, P.Geo., a Qualified Person as
defined by NI 43-101, is responsible for the estimate of mineral
resources presented in this news release and has reviewed, verified
and approved the contents of this news release as they relate to
the mineral resource estimate.
Stephen Kenwood, P. Geo., a director of Sonoro,
is a Qualified Person within the context of National Instrument
43-101 and has read and approved this news release.
About Sonoro Metals Corp.
Sonoro Metals Corp. is a publicly listed
exploration and development company with two exploration stage
precious metal properties in Sonora State, Mexico. The company has
highly experienced operational and management teams with proven
track records for the discovery and development of natural resource
deposits.
On behalf of the Board of SONORO METALS
CORP.
Per: “Kenneth
MacLeod”
KENNETH MACLEOD
President & CEO
For further information, please contact:Sonoro
Metals Corp. - Tel: (604) 632-1764Email: info@sonorometals.com
Forward-Looking Statement
Cautions:
This press release contains certain
"forward-looking statements" within the meaning of Canadian
securities legislation, relating to, among other things, the
Company's plan to continue its exploration and metallurgical
testing activities on its Cerro Caliche Group of Concessions,
located in the municipality of Cucurpe, Sonora, Mexico, including
the belief that a majority of inferred mineral resources could be
upgraded to Indicated (or Measured) mineral resources with
continued exploration. Although the Company believes that such
statements are reasonable based on current circumstances, it can
give no assurance that such expectations will prove to be correct.
Forward-looking statements are statements that are not historical
facts; they are generally, but not always, identified by the words
"expects," "plans," "anticipates," "believes," "intends,"
"estimates," "projects," "aims," "potential," "goal," "objective,"
"prospective," and similar expressions, or that events or
conditions "will," "would," "may," "can," "could" or "should"
occur, or are those statements, which, by their nature, refer to
future events. The Company cautions that forward-looking statements
are based on the beliefs, estimates and opinions of the Company's
management on the date the statements are made and they involve a
number of risks and uncertainties, including the possibility of
unfavourable interim exploration results, the lack of sufficient
future financing to carry out exploration plans, and unanticipated
changes in the legal, regulatory and permitting requirements for
the Company’s exploration programs. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law or the policies of the TSX
Venture Exchange. Readers are encouraged to review the Company’s
complete public disclosure record on SEDAR at www.sedar.com.
THIS PRESS RELEASE DOES NOT CONSTITUTE AN
OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, NOR SHALL
THERE BE ANY SALE OF SECURITIES OF THE COMPANY IN ANY JURISDICTION
IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY
SUCH JURISDICTION.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this release.
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