Ownership: 60% Candelaria Mining Corp.
Land Package: 11,667 ha
Description: KM66 consists of 19 concessions comprising 13,369 hectares situated in eastern Durango State, Mexico. Candelaria owns 14 of the concessions consisting of 11,667 hectares and the balance being owned by a local partner.
Location: The Km 66 Property is centred approximately at latitude 25°50' north and longitude 103°50' west, which is situated in the Municipality of Mapimi, in the eastern part of Durango State, Mexico. The property is bisected by paved highway, and is located approximately 66 kilometres west of the town of Bermejillo and 100 kilometres north-west from the City of Torreón and San Pedro de las Colonias, in Coahuila state.
- Excellent location within Carbonate Replacement Deposit (CRD) Mexican Belt with 40% of mexican silver production (Major - Low Cost mines of Minera Frisco, Peñoles, Grupo México and Goldcorp)
- Located only 60 Km of Platosa Mine, 110 Km of Velardeña Mine, 250 Km of Naica Mine and 350 Km of Sta. Eulalia Mine
- The Municipality of Mapimi is on the electrical power grid, and has telephone services provided by TelMex. Mapimi also has water and drainage systems.
Access: The property is situated in the Municipality of Mapimi, which is located approximately 64 kilometres northwest of the city of Gómez Palacio, and roughly 175 kilometres northeast from Durango; the capital of Durango State. From Bermejillo, the property can be accessed along paved E-W Highway 30, which connects Bermejillo on the east, with La Zarca on the west. Highway 30 passes through the southern part of the Km 66 claim block. Torreón is approximately 40 kilometres south of Bermejillo via Highway 49.
Climate: Situated in the northern plateau region of the State of Durango, the climate is arid to temperate. Areas within this province are deserts, such as Mapimi, where less than 250 millimeters of rain falls within a “rainy season” between July and October. Cooler temperatures in the winter may produce some frost. The average annual temperature is 21°C, fluctuating between 41°C and 9°C. Exploration can be undertaken throughout the year.
Geology and Mineralization:
Various styles of Pb-Ag-Zn-Cu-Mo (W-Sn) mineralization lie within a NEtrending, 4 km-long belt. The mineralization is generally hosted by Cretaceous calcareous sedimentary rocks, some of which are cut by mineralized breccia bodies, as well as some rhyolitic minor intrusions. At the southern end of the belt are the La Gloria, Carmen and Las Palmitas zones; these contain Pb-Ag-Zn mineralization that is hosted by irregular-shaped, steep to shallow-dipping breccia bodies. The galena-sphalerite mineralization generally lies in the breccia matrix, and this style is believed to represent distal or low temperature carbonate-hosted replacement mineralization (CRD) similar to that described elsewhere in Mexico (Diaz-Unzueta, 1986, Titley, 1996, Megaw et al., 1996 and Megaw, 1998, in Gilles Arseneau, 2008).
Further north on the property, the mineralization at Bulls eye and North Zone is hosted by more proximal calc-silicate hornfels and garnet-bearing skarn. The Great Panther realization that the Bulls eye Mo ± Pbbearing quartz-vein mineralization extends over an extensive area (at least 200 by 300 meters) suggests that many parts of the Mapimi- Km66 property are still under prospected.
Drilling to date has encountered significant mineralization, some of which has no outcrop and no surface expression.
Wardrop Engineering Inc. has estimated that, at a 50 g/t AgEQ cut-off, the capped Indicated mineral resource at La Gloria mine Km66 Project as determined by ordinary kriging is 6.6 million tons grading 0.10 g/t Au, 28 g/t Ag, 0.41% Pb, and 1.14% Zn. The property contains an additional 2 million tons classified as Inferred mineral resource grading 0.13 g/t Au, 34 g/t Ag, 0.54% Pb, and 0.81% Zn.
Resource: Based on this interpolation methodology, Wardrop Engineering Inc. estimated that the Km 66 Property contains an inferred mineral resource of 5 million tons grading 58 g/t Ag, 0.81% Pb and 1.3% Zn at a 50 g/t cut off AgEQ cut-off.
- Investors should be cautioned that the mineral resources are of a historical nature that has not been independently verified by Candelaria’s Qualified Person. It is not known the extent to which the key assumptions, parameters and methods used to prepare the historical estimates are still relevant. More work, including but not limited to, drilling, will be required to upgrade and verify the estimates to current. Investors are cautioned that the historical estimates do not mean or imply that economic deposits exist on the KM66 Property. Candelaria has not done sufficient work to classify these historical estimates as current mineral resources and is not treating the historical estimates as current mineral resources or mineral reserves. Candelaria considers the historical estimates relevant as a guide to future work on the KM66 Property.