Nopalera property summary
Nopalera is one of the Golden Goliath Resources properties located in the Uruachic Mining District that the Company is optioning to Fresnillo PLC. The target is deep and drilling will be expensive. It is a large claim, roughly 5 km E-W by 5 km N-S and is located on the eastern side of the district.
Contiguous to Nopalera’s eastern boundary is a very large black of claims held by Fresnillo PLC and their sister company Peñoles. Fresnillo’s new discovery called Orisyvo lies a few kilometres from the southeast corner of the Nopalera property. Orisyvo, already has an initial resource of 9.9 million oz of gold and 13 million ounces of silver. It is believed by many that this will be Mexico’s largest gold mine. Geologically, Orisyvo is a porphyry gold-molybdenum situation hosting a high sulphidation epithermal gold deposit, with a high grade gold zone lying above molybdenum mineralization. Golden Goliath’s senior Mexican geological consultant used to work at Orisyvo, giving GNG the benefit of his knowledge of the deposit. GNG’s exploration team has recently done extensive surface work on the Company’s adjacent Nopalera property, including the collection and analysis of over 3,000 rock samples for geochemical stydioes, structural studies, clay mineralogy studies and detailed geological mapping. We have found that Nopalera has many geological characteristics in common with Orisyvo. Nopalera hosts four know porphyryitic intrusions, three of which are mineralized, it has s imilar structural setting, and has the property has strong evidence that a high sulfidation deposit lies at depth, including the presence of vuggy quartz, anomalous gold and other metal values and high temperature clay alteration minerals
Uruachic Mining District
The high grade (+3 g/t) gold zone at Orisyvo lies about 700 metres below the surface. The mineralization is hosted within rocks of the Lower Volcanic Sequence, which in turn is overlain by about 200 metres of rhyolitic volcanics belonging to the Upper Volcanic Sequence (see section and model). At Nopalera, the Upper Volcanic Sequence rocks have been removed by erosion. The exposed Lower Volcanics host a large alteration zone, which is comparable to the situation at depth at Orisyvo.
Nopalera – Alteration Zone
The following geological map and cross section covering the Nopalera – Orisyvo trend shows this quite well.
During 2012 and 2013, Golden Goliath Resources conducted extensive surface work on the Nopalera property, most of which covers the lower half of the claim. The work includes detailed geological and structural mapping, the collection and analysis of several thousand rock samples, analysis of clay minerals using a Terraspec apparatus, as well as access road building. The 2013 report from this work is included in the data section of this file. GNG’s initial exploration of the Nopalera property started before the discovery of the Orisyvo deposit. GNG’s exploration team had already identified the property as a porphyry target, but its significance was not yet recognized. In early 2006, a small IP survey was done in the vicinity of an old stibnite mine in the southeast corner of the property (later we learned that antimony is a pathfinder element at Orisyvo). During that year GNG was conducting a program of Reverse Circulation drilling on the adjacent Las Bolas property. That drilling went quite quickly and while waiting for assays before drilling more holes, it was decided to move the drill to Nopalera to test some of the IP targets. The drill had a maximum depth capability of only 200 metres and the recovery was poor. Never the less, many anomalous results were obtained as well as important information about alteration and trace element geochemistry. The report from this program is included in the technical data section of this file.
As the high sulphidation gold target at Nopalera is estimated to lie at a depth of 500 metres, there was no chance of hitting it with the shallow RC holes. However, after the discovery of Orisyvo, this information was used to compare Nopalera trace element geochemistry from surface to -200 metres to the equivalent stratigraphic section at Nopalera. The comparison is very close and is convincing evidence that a high sulphidation deposit lies at depth on Nopalera.
Golden Goliath’s initial hopes were to raise the capital to drill the Noplaera property. This would require a major drill program due to the depth of the target and the size of the property. Concurrently the market conditions for financing deteriorated considerably and Golden Goliath returned its focus to its San Timoteo property, which has a smaller, but quite high grade target that is near surface and therefore less expensive to explore.
The Nopalera property is underlain by volcanic rocks of the Lower Volcanic sequence that are cut by several small intrusive bodies and dikes. Satellite images show that this area, which measures 4 km east west by 3.5 km north south, contains the largest and strongest alteration zone in the Uruachic camp, which can easily be distinguished on satellite photos. trend, for additional 1000 or more metres of strike length.
Nopalera was defined several years ago as a porphyry target, which is unique to this part of the world as most mineralization is vein hosted. That is, until the recent discovery of Orisyvo by Fresnillo PLC on the property adjacent to Nopalera. Orisyvo has been described as a porphyry deposit.
Fresnillo PLC is the world’s largest primary silver producer, and as such, provides limited disclosure of its advanced exploration programs. However, what they have disclosed about Orisyvo is:
• Permitting is in process for an exploration adit to initiate underground exploration in 1H 2011
• Pilot plant to be established in 2011
• Over $150 million has already been spent on the project and Fresnillo plans to spend another $800 million to bring the property to the production stage. They plan to employ 1,500 people full time for a mine life of 15 years
The Fresnillo claims that host the Orisyvo deposit border Golden Goliath’s Nopalera claim on its eastern edge. The proximity of Orisyvo and a similar geological model has management very excited on the potential of Nopalera.
Fresnillo, has now staked claims that completely surround our Uruachic Camp. This makes the area an important new emerging gold district with world class gold deposit potential and Golden Goliath is holding a substantial land position in the heart of it.
Surface work, including detailed geological and structural mapping, geochemical sampling and the rehabilitation of old workings started in the spring of 2011. The results indicate that the potential for substantial gold mineralization increases with depth. Such is also the case at Orisyvo, except in that case Fresnillo has to drill through a substantial thickness of relatively barren rocks of the Upper Volcanic Sequence. At Nopalera, nature has removed this obstacle by eroding the Upper Volcanics.