Las Bolas Fault-Fracture-Vein System:
Work to date on the Las Bolas property, including reverse circulation and diamond drilling, detailed underground mapping and sampling of the numerous old workings and surface work, has shown that the central to western side of the Las Bolas property is characterized by three main mineralized trends. These trends run northeast by southwest and are called the Las Bolas-Gambusino trend, the Frijolar trend and the Corazon trend (see map on this page).These three zones host numerous, extensive old adits, with their entrances on the west facing slope above the Rio Uruachic. Mineralization within these trends is characterized by steeply dipping, fracture vein systems, hosting silver and gold mineralization, with lesser amounts of lead and zinc. This mineralization is believe to be the result of a mesothermal lead, zinc, silver system that was then overprinted by an epithermal gold-rich system. The average grade of this area (Jaramillo 2009) is estimated to be 434 grams/tonne silver and 0.98 grams/tonne gold in the Las bolas workings area, which has the most data. In all there are 12 known vein systems on the property and seven of them are on the western side of the property. They are called vein systems as there are often multiple veins on each. For example, the Las Bolas vein system hosts at least 7 veins in close association.(see 43-101 Report by Jaramillo 2009 on SEDAR)
Further to the west of the main Las Bolas tunnel entrance, at El Manto, the mineralization changes to a semi flat lyimg zone of higher grade sulphide mineralization. Relatively little work has been done on this area, but it is postulated that this mineralization could be related to the source of the oxide mineralization with the fracture/vein systems above and to the east.This manto – like zone has returned some spectacular assays, such as 9.87 grams/tonne gold with 3,090 grams/tonne silver (89.6 oz/ton), over some drill intervals.
Disseminated Bulk-tonnage Gold System:
In addition to the fracture/vein hosted mineralization in the three northeast trending trends described above, about 1,100 metres to the east on the Los Hilos ridge different disseminated-bulk-tonnage gold mineralization system called Filo de Oro has been identified cross-cutting the three main mineralized trends. This zone was identified and explored after the completion of the 43-101 report on the Las Bolas property written by Victor Jaramillo (November 2009). This report, which is on file in its entirety on SEDAR, includes a resource calculation for the Las Bolas area of the property. However, the calculation is based only upon 1,554 of diamond drilling and detailed sampling of underground workings. The much more extensive Reverse Circulation drilling could not be included as the recovery was below the 80% designated by the regulators. Therefore many good grade intercepts could not be included. The Company argued that if a drill interval had x gold grade over 5 metres with a recovery of 65%, then it would not have less than x over the same interval if the recovery was 90%. However the regulators would not permit the inclusion of that data.
Locally, high grade, gold dominant veins run through Filo de Oro. The roughly north-south trending Filo de Oro Trend also hosts numerous old workings. The zone has been defined for over 1,000 metres and is open at depth. Please see Figure (Location Map of Filo de Oro & Mosca de Plata Section) Preliminary underground sampling of the Mosca de Plata workings, within the Filo de Oro system, for example returned an average of 0.70 gms gold/tonne and 153 gms silver/tonne over its tested length of 46 metres. Nearby surface sampling returned an average of 0.82 gms gold/tonne and 40 gms silver/tonne for 79 samples. Additionally, 18 samples from a 40 metre long exposure of a 1.5 metre wide vein averaged 1.56 gms gold/tonne and 77 gms silver/tonne and in one location two contiguous samples across the structure averaged 10.2 gms gold and 257 gms silver/tonne. The Los Hilos tunnel itself averages 1.53 grams/tonne gold and 54 grams/tonne silver over the entire 208 metres of the main adit level.
Throughout 2010 a program of diamond drilling was conducted on the Las Bolas property. The majority of the holes were collared on the eastern side of the property, with the Los Hilos / Filo de Oro trend, but several holes were also completed within the three main trends on the western half of the property. The 2010 drill program comprised 3,440 metres of drilling in 25 holes on the Los Hilos/Filo de Oro side (east side ) of the property and 999 metres of drilling in 8 holes on the Las Bolas (west side) area of the property.
The Los Hilos / Filo de Oro drilling was quite successful as it showed that both vein and disseminated precious metal mineralization was present over a wide area, with gold usually dominant over silver. Deeper, porphyry related, mineralization was also found in the southern end of the Filo de Oro trend, which could be of major significance with respect to further exploration.
The 2010 drilling on the west side of the property as it confirmed the strike extension of the three northeasterly trending mineralized trends and also showed that the mineralization is open to depth. This depth potential strengthens the possibility of the mineralization being related to the semi flat lying sulphide zone of the El Manto area.
Additional work by independent consultant Victor Jaramillo also shed light on the nature of the Las Bolas mineralization. In his 43-101 report he summarizes that he “believes that the Las Bolas-Los Hilos Property hosts an early stage mesothermal system of silver-lead-zinc veins followed by a later low sulphidation epithermal gold-silver event. Both systems are structurally controlled and confined mainly along fault zones as veins, silica stockworks and breccias.
Mesothermal vein systems are formed at considerable depths (from 600 m to 1000 m or more) by hydrothermal processes in a temperature range of 200°C to 300°C. The presence of dark gray quartz veins, cutting and brecciating the early silver-base metal mesothermal veins or oxide veins may be related to this later epithermal event. See image Banded iron-manganese oxide vein with quartz.
Jaramillo also states:
“In the author’s professional opinion, the property discussed in this report is of merit, and thus it is strongly recommended that a detailed exploration program, as outlined in this report, be undertaken.”
After the completion of the 2010 drill program on the Las Bolas/Los Hilos property, Golden Goliath signed a Letter of Intent with Agnico Eagle Mines for a option and joint venture on the property. This was announced in the December7, 2010 ppress release.
Under the terms of the option agreement, Agnico’s Mexican subsidiary has the right to earn a 51% interest in the Las Bolas and Los Hilos properties by spending $5,000,000 on the properties over a period of 5 years. The first year’s work commitment is a firm commitment of $500,000 with expenditure requirements increasing each year thereafter. Upon exercising its option, Agnico will have the right to earn an additional 20% interest by completing a feasibility study or by spending an additional $10,000,000 over another period of 5 years.
Golden Goliath is very pleased with this milestone agreement as it will allow for the exploration and development of the property by the very skilled explorationists of Agnico Eagle and allow Golden Goliath to further advance other nearby properties that also have excellent potential. |
Location Map of Filo de Oro (Click on the image to enlarge)
Filo de Oro Section (Click on the image to enlarge)
Los Hilos Tunnel Plan Map (Click on the image to enlarge)
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