Target Shallow-water, precious-metal-rich VMS-epithermal system Location: Jalisco, Mexico Size: 232km2 Status: 100% Owned by Evrim and available for option Stage: Follow-up of drainage and ASTER anomalies on concession
Cuale is a 232 square kilometre early stage exploration property 100%-owned by Evrim and prospective for shallow-water, precious-metal-rich VMS/epithermal deposits. The project is located 185 kilometres west of Guadalajara and 35 kilometres southeast of Puerto Vallarta in the Cordillera Madre del Sur.
Cuale was identified and staked under the Callinan Royalties Generative Alliance (now owned by Altius Minerals) and is subject to a 1.5% net smelter royalty (“NSR”) for precious metals and a 1.0% NSR for base metals payable to Altius Minerals. Cuale was identified and staked as part of the Company’s generative exploration program.
The property is located within the Talpa de Allende area of Jalisco near Agnico Eagle Mines’ Barqueño project (645k oz gold and 38M oz silver) and Endeavour Silver’s Terronera project (42M oz silver and 436k oz gold). The area is close to infrastructure with roads and powerlines crossing the property.
The property is located within the Zihuatanejo subterrane of the larger Guerrero terrane, a continental-margin arc of Mesozoic age that hosts the majority of volcanogenic massive sulphide (VMS) deposits in Mexico. The Zihuatanejo subterrane consists of interbedded rhyolitic and volcaniclastic rocks that have been intruded by the Cretaceous Puerto Vallarta batholith. These rocks host the silver and zinc-rich VMS deposits in the historic Cuale district and the 6 million-ton La Minita deposit. Several of the deposits in the Cuale district contain gold grades in excess of 1 gram per tonne and silver grades in excess of 100 grams per tonne. Further east in Zacatecas state, Teck and Western Copper’s San Nicolas deposit has a mineral reserve totalling 72 million tonnes and averaging 1.4% copper and 2.3% zinc.
Evrim’s Cuale project is centered over the La Gloria prospect, a quartz-hematite gold showing that was the focus of detailed mapping and sampling, IP and CSAMT geophysical surveys and a diamond drilling program by Evrim in late 2018. That work identified an area of gold-bearing, high-sulphidation style mineralization overlying a section of chlorite-altered tuff with copper-bearing intervals, including 1.6% copper over 10 metres in Evrim drill hole GLR18-01. Evrim’s exploration program focused on the gold potential of the high-sulphidation prospect at La Gloria, whereas the balance of 232 square-kilometre property remains largely unexplored. ASTER imagery and stream-sediment geochemistry covering roughly a third of the property outline areas of anomalous zinc, barium and mercury that have not been followed up.
The content of this page has been reviewed by Dave Groves, Vice President of Exploration for the Company. Mr. Groves is a Qualified Person as defined under the terms of National Instrument 43-101.
A total of 1,167 metres has been completed in four of the first five holes of a 10-hole drill program. The drill holes completed to date have intersected volcanic fragmental rocks, all of which have been variably altered and represents part of a significant hydrothermal system. Drill holes GLR18-01, GLR18-02 and GLR18-03 were designed to form a section beneath Trench 4 and intersected a 28 metre to 32 metre true thickness of quartz-hematite breccia from surface. The breccia is predominantly clast supported with 1.0 millimetre to 20 centimetre sub-rounded clasts of quartz with interpreted pyrophyllite/dickite and specular hematite in an earthy hematite matrix. This unit hosts the gold mineralization observed in trenching and drilling. Gold correlates with elevated silver, bismuth, molybdenum, lead and antimony. Beneath this unit is a 3.0 metre band of massive quartz and interpreted pyrophyllite/dickite alteration that has pervasively replaced an earlier tuff unit.
Underlying this breccia is a 128 metre to 175 metre true thickness of felsic lithic tuff that is strongly altered by quartz, chlorite and pyrite explaining the strong resistivity targeted in these holes. The pyrite in this zone also coincides with a weak chargeability anomaly. Beneath this unit is a fine-grained crystal tuff with a true thickness of 20 metres to 28 metres with a zone of intense pyrite, chalcopyrite and chalcocite at the lithic tuff – crystal tuff contact. This contact is the location of the copper intersections in holes GLR18-01 and GLR18-02. At the base of the three holes is a coarse-grained tuff unit with abundant quartz eyes (5% to 20%) and strong quartz and chlorite with minor pyrite alteration.
Drill holes GLR18-04 and GLR18-05 are step-out holes towards the north. These holes define a similar sequence of breccia and tuff units although the quartz-hematite altered breccia thickens to the north, increasing to a true thickness of 76 metres in hole GLR18-05. Unlike the first three holes, gold mineralization in GLR18-05 is only minor. The depth of oxidation increases to the north while the underlying lithic tuff unit thins notably.
Additional targets include the North Dome area where a post mineral breccia contains 30% to 90% quartz altered clasts, up to 1.5 metres in size, that contain gold grades from below detection to 11.90 g/t gold (19 of 63 rock chip samples are greater than 0.25 g/t gold). The breccia is also believed to have sampled a mineralized zone beneath the surface representing a target at depth.
Core samples were delivered to ALS Global in Guadalajara, Jalisco for sample preparation and to the ALS laboratory in North Vancouver for analysis. The Guadalajara and North Vancouver facilities have ISO/IEC 17025:2017 certification. Field duplicate samples, blank rock samples and certified reference materials were inserted into the sample sequence each at a frequency of one per 20 samples. Samples were assayed for gold by 30 gram fire assay and multi-element analysis by four-acid and ICP analysis.
Feb 12, 2020Cuale Technical Presentation October 2019