The Mexico Properties:
- El Cumbro
- El Cusito
- Canada De Oro
- La Moneda
In November 2006, we acquired from Atlas Precious Metals, Inc., 100% of the equity of Metales Preciosos, S.A. de C.V. (“Metales Preciosos”), a Mexico corporation, by issuing 300,000 shares of our common stock to an affiliated entity, Atlas Precious Metals that owned Metales Preciosos since October 2003. Metales Preciosos, which we now own, owns a 100% undivided interest in the following four mining properties located in the southeast part of the State of Sonora, Mexico:
- The El Cumbro Property is composed of 774.8 acres located 123 miles southeast of the city of Hermosillo and 6.5 kilometers northeast of the town of Tepoca, Sonora, near Yecora and the border between the States of Sonora and Chihuahua, Mexico.
- The El Cusito Property is comprised of 184.8 acres and abuts the El Cumbro Property to the east.
- Canada de Oro is comprised of 486 acres and is an alluvial gold property abutting the El Cumbro property and extending from the El Cumbro property southeast for approximately five kilometers;
- The La Moneda gold property is composed of 416.84 acres and is located in the western part of the State of Sonora, approximately 14 kilometers inland from the Gulf of Cortez near the port city of Puerto Libertad.
Preciosos maintains a small exploration office in Hermosillo, Sonora, Mexico, from which it conducts exploration on the various properties and performs required administration of its mining properties.
Currently, there are no proven mine grade ore reserves and we are in the exploration stage; however, there are identified veins and potential for ore grade mineralization.
We own a 100% undivided interest in a 416.14 hectare claim block through our acquisition of Metales Preciosos. This claim was the focus of an intensive work campaign during the Spanish Colonial Era; however, little systematic work has been conducted since that time and no production records are available. A portion of an open cut on a vein measuring 2.8 meters thick were open and were sampled during the scout sampling.
The La Moneda property is located 25 kilometers east of Puerto Libertad on the west coast of Sonora, 126 kilometers southeast of Caborca, Sonora. The access to the property is paved roads to the town of Puerto Libertad with the last 14 kilometers over unpaved maintained road in excellent condition. The nearest electrical power to the property is 10 kilometers away. The property forms the heart of a gold district on the Aguirre Mountain, the site of numerous gold workings comprised of both alluvial and hard rock mines. The property has one Spanish Colonial Era adit. The property is a pure exploration property.
El Cumbro and El Cusito Properties:
The properties host multiple lode veins that were last worked during the Spanish Colonial Era. The veins on the property generally trend in a northeast southwest direction and extend for several kilometers. The multiple veins generally are parallel. The ore is polymetallic in nature, containing silver, gold, zinc, lead and copper in abundance. Numerous workings exist on the properties and date back to the Spanish Colonial Era
The multiple adits on the property are generally un-passable without clean out and shoring. Colonial workings are shallow and occurred on veins that demonstrated high grade surface expression. During due diligence, samples were from material collected by trench sampling of waste dumps and assayed and demonstrate the potential for high-grade ore material on most of the veins. The workings were on veins showing a minimum width of one meter to as much as five meters. There are three distinct veins of minable widths. The El Cumbro vein has the widest and highest grades.
The El Cumbro and El Cusito properties are located 205 kilometers southeast of the city of Hermosillo and 6.5 kilometers northeast of the town of Tepoca, Sonora, near Yecora and the border between the States of Sonora and Chihuahua, Mexico. The highway from Hermosillo to Yecora is a paved road in excellent condition.
Property Description, Location and Access
The El Cumbro, El Cusito, and Canada De Oro Properties abut one another and together share common access.
The El Cumbro and El Cusito Properties are located generally within the Sierra Madre Gold/Silver Belt along the Sonora/Chihuahua border, in the southern part of Sonora.
The El Cumbro Property is composed of 774.8 acres located 123 miles southeast of the city of Hermosillo and 3.9 miles northeast of the town of Tepoca, Sonora, near Yecora and the border between the States of Sonora and Chihuahua, Mexico. The highway from Hermosillo to Yecora is a paved road in excellent condition.
The El Cusito Property is comprised of 184.8 acres and abuts the El Cumbro Property to the east
The Canada de Oro Property is comprised of 486 acres, and abuts the El Cumbro and El Cusito claims to the south. This property is an alluvial deposit that was eroded from the El Cumbro and El Cusito claim areas and deposited in a valley drainage that begins on the property and runs south. The Canada de Oro claims cover this valley.