San Timoteo / San Martin Introduction

San Timoteo is Golden Goliath’s main property in the Uruachic Mining district and is its main focus of exploration. However, it is just one of 7 properties the Company owns in the district. The other six Uruachic properties are now under option to Fresnillo PLC.
There are several small old workings on the San Timoteo property, mostly on the, original San Timoteo claim itself, as well as one major old working, slightly more to the north, which is the old San Martin mine. This past producer of high grade silver and gold is located on the Las Trojas claim and was developed over several levels. By far, the largest tunnel, is the 500 adit level and this is the only working in the Uruachic camp that has old rail tracks.
Previous detailed sampling and mapping in the No. 5 level outlined three high grade gold and silver bearing mineralized shoots and one mineralized “manto’ exposed within the tunnel. The grades and widths of these zones are excellent are detailed below. Exploration work in 2015 included clay analysis of samples from all over the San Timoteo property, especially from the No.5 level of the old San martin mine. This work confirmed that the No. 5 level is ABOVE the boiling, or “bonanza” zone of the epithermal model, indicating potential at depth, and generated 12 drill targets for testing. Five of these targets are within the tunnel and 8 are surface targets around the property. The Company intends to drill these targets when additional financing is completed.

 

San Timoteo is just one of the Golden Goliath properties in the Uruachic mining camp.               Uruachic mining camp

 

Golden Goliath Uruachic camp properties

 

 

The San Timoteo property

San Timoteo property

 

 

The 500 level of the San Martin mine is over 500 metres long and is connected to other levels through raises and winzes. It is the lowest adit level possible as its entrance lies at the bottom of a local valley.

Exploration work by Golden Goliath over the past two years on the San Timoteo property has included detailed mapping and sampling within the San Martin , or Level 5 tunnel. San Martin is an adit. It is the largest and most recent of the old workings in the area and is the only old tunnel known to have had steel rails. San Martin is the lowest adit level and is located in the central area of the property, within the Las Trojas claim (see map above). The tunnel is about 500 metres long, with a diameter allowing underground drilling. The tunnel runs parallel to the Las Trojas claim boundaries with its mouth on the east end.
The exploration work revealed that there are three mineralized shoots exposed within the San Martin tunnel. A zone of manto, or blanket, style mineralzation was also identified in this area. The shoot closest to the entrance of the 500 level tunnel is known as Manatial. This structure is exposed for 32 metres with a weighted average of 0.301 ppm gold and 212 ppm silver. In the central area of the tunnel, the La Cascada structure is exposed for 78 metres and averages 0.629 ppm gold and 68 ppm silver. At the far end of the 500 level, the Pozo de Agua structure is exposed for at least 84 metres, with continuous channel sampling averaging 0.795 ppm gold and 251 ppm silver. Additional non continuous sampling outside of this section also returned good values. The true thickness and grade of the blanket or manto style mineralization is not certain due to limited exposure.
Modelling of the three shoots dimensions and grades below the 500 level is uncertain due to lack of drill data in the specific areas, but relatively nearby drill holes do show significant mineralization. Potential for deeper, porphyry-related copper and gold mineralization was identified.

 

San Martin mine

 

 

The initial program of mapping and sampling within this adit, showed the presence of high grade gold and silver mineralization in several areas which was related to intensely altered breccias and structures rather than discreet quartz veins. Assays plots from the initial work are given below.

 

San Martin mine2

 

San Martin mine3

 

San Martin mine4

Starting in late 2012 and throughout most of 2013 GNG personnel conducted a much more comprehensive and detailed program of underground rehabilitation, geological and structural mapping, clay mineralogy and rock sampling within all of the old levels of the San Martin mine. Regional structural and tectonic setting was also studied. These reports are provided in a separate folder. This work was done under the supervision and direction of Ing. Jorge Madrigal, who is regarded by many as one of the best underground geologists in Mexico. He authored the main the main report, which contains many detailed plans and sections.

Selected plans and diagrams from the recent reports appear below.

Detailed Sampling Silver

San Martin mine4

Detailed Sampling Gold

San Martin mine2

San Martin mine4

San Martin mine4

La Cascada Samples

gold

The El Manantial trend ranges from 20 to 30 metres wide with a known height of 200 metres.

Manantial Samples

gold2

Pozo de Agua samples

gold3

In addition to these vertical structures two more horizontal, manto-style, zones were also identified.  These are known as Manto La Cascada and Manto Salon.

The Manto La Cascada is an argillically altered horizon near the contact of an intrusive dike.  The limits of the horizontal projections are unknown, but the grade where it has been sampled is quite significant.

Manto La Cascada

gold4

In 2016 Golden Goliath used its Terraspec apparatus to analyse the clay minerals in rock and drill core samples from around the property. The core and reference samples are stored locally.
The aim of this work was to allow the company to build a 3D model of clay mineralogy to aid in the planning of future drill holes. Because different clay minerals form at different temperatures they can be used to differentiate different levels in the epithermal system that deposited the mineralization. Different metals are deposited at various paleo depths as the mineralized solutions rise and cool. Base metals are deposited first in the deepest levels and are sometimes related to porphyry style mineralization. Porphyritic rocks have been encountered at San Timoteo and that potential may exist on the property at greater depth.
When the rising fluids get close enough to the surface that the confining pressure of the overlying rock is no longer sufficient to stop boiling, most of the precious metals are deposited and the “bonanza zone” of gold and silver mineralization occurs. A specific goal of the Terraspec work program was to ensure that the Level 5 tunnel at San Martin (the lowest old working on the San Timoteo property), is above the pale boiling level indicating greater potential at depth. The interpretation of the results confirmed the San Martin tunnel is above this level.
Based on the results of the 2016 Terraspec program the Company’s geological team designed a follow up drill program. This program would involve a review and interpretation of existing geochemical, geophysical and geological data in lite of the new clay mineralogy work, followed by a total of 18 drill holes totaling approximately 5,100 metres. Six of the proposed holes would be from underground, within the San Martin tunnel and a further 12 holes from surface. The proposed program would cost a minimum of $1 million

Rehab and mine cleaning San Martin

 

Regional Structures plotted on Google Earth

Uruachic Camp google earth

 

San Martin is located on the edge of a circular structure within the nested caldera complex of the Uruachic district.

 

San Martin mine5

 

 

San Martin mine6

 

 

Golden Goliath Resources needs to either raise funds for the continuation of work in the San Martin area, or option an interest in the property to a third party.

 

Location and Claims

The San Timoteo property consists of five claims totaling 793 hectares just northeast of the town of Uruachic.

San Timoteo Location Map

Geology

Northeast trending structures and at least one east-west structure cut intensely altered dacitic volcanics and minor sedimentary rocks of the Lower Volcanic sequence and small intrusive bodies. Stockwork veining is extensive in some areas. Numerous old mine workings occur on this property, including several levels of adits on the San Timoteo claim, a major adit on the Las Trojas claim (the San Martin Mine, which is the only old mine in Uruachic known to have tracks), as well as several smaller tunnels. San Timoteo II contains the old Las Animas, Sucursal and Polo Norte mines.

Mineralization

Mineralization on the San Timoteo property often occurs in shears cross-cutting intrusions and in intrusive breccias. Mineralized showings as well as old mined workings often line-up along regional structures. On the San Timoteo property, gold and silver mineralization appears to be spatially associated with the presence of tourmaline. The presence of tourmaline could indicate deeper levels and mesothermal conditions with the possible presence of porphyry systems at depth. Gold mineralization is probably related to later epithermal events, which mineralized tourmaline-rich intrusive breccias and shears.

San Martin Tunnel Gold Assays

San Martin Tunnel Silver Assays

 

Exploration Program

The San Timoteo property presents a very attractive gold and silver target that can be explored at relatively low cost because three mineralized zones are already exposed in the large 500 level tunnel.  The development at Fresnillo PLC’s nearby Orisyvo deposit is scheduled to include a mill, which could possible be used to process future ore that might be mined at San Timoteo, thereby reducing the target size needed for exploitation.  Fresnillo wanted to Option San Timoteo but GNG will retain it 100%.

Throughout most of 2013 GNG personnel conducted a comprehensive and detailed program of underground rehabilitation, geological and structural mapping, clay mineralogy studies and rock sampling within all of the old levels of the San Martin mine. The regional structural and tectonic setting was also studied.  Rehabilitation and cleaning, which covered a length of 1,584 metres of old workings, was done with local labour in order to keep costs down. The work expanded and confirmed earlier findings that these working host very significant epithermal gold and silver mineralization, which occurred in several stages, with higher grade shoots as well as manto-style zones. There is also evidence of deeper porphyry-related potential.

The comprehensive sampling program included the collection of 1,125 chip and channel samples from the walls of the underground workings, covering all of the different zones and styles of mineralization.   Of these, a total of 671 were analyzed, with the others held in reserve for future infill and confirmation analysis.

Three main mineralized shoots and two manto, or horizontal horizon, zones were identified by the program.

The La Cascada and Pozo de Agua trends varies from 30 to 70 metres wide and is identifiable from existing data, for a vertical extent of at least 300 metres.  Examples of sample results from these zones are reproduced below.

La Cascada Samples

gold

The El Manantial trend ranges from 20 to 30 metres wide with a known height of 200 metres.

Manantial Samples

gold2

Pozo de Agua samples

gold3

In addition to these vertical structures two more horizontal, manto-style, zones were also identified.  These are known as Manto La Cascada and Manto Salon.

The Manto La Cascada is an argillically altered horizon near the contact of an intrusive dike.  The limits of the horizontal projections are unknown, but the grade where it has been sampled is quite significant.

Manto La Cascada

gold4

The Company is very pleased with the results to date and work in January 2014 is still underway to plot the data in 3D format to better understand the potential at depth.

While the majority of the exploration work at San Timoteo was focused on delineating and expanding the known mineralized structure anchored by the historic San Martin tunnel workings, the Company has also partially exploried a new precious metal anomalous zone located approximately 750 meters north of San Martin which is called the Sucursal structure. This area, which also hosts an old mine tunnel, appears to be a large southwest-northeast corridor approximately 80 meters below surface returned assay values of 11.3 metres of 0.41 g/t gold and 142 g/t silver, including a section of 4.61 metres grading 0.59 g/t gold and 267 g/t silver which in turn includes a 1.05 meter section grading 0.46 g/t gold and 705 g/t silver (gold equivalent value of 14.56 g/t Au at a 50:1 silver/gold ratio).

 The Sucursal structure is exposed on surface and is open at both depth and to the east with numerous tunnels and evidence of historic workings along strike, including the Las Animas mineralized structure which is located approximately 780 m to the west).

The last drill holes on the San Timoteo property were drilled in the Sucursal area, which lies several hundred metres north of the old San Martin tunnel. Very encouraging values were obtained from these holes and follow up drilling is definitely warranted. Drill hole SU-08-01 intersected 0.59 g/t gold and 267 g/t silver over 4.6m including 0.46 g/t gold and 70 g/t silver over 1.05m. An offset drill hole to the west of SU-08-01 intersected 175 g/t silver and 0.12 g/t gold over 4.87m and an offset to the east intersected 129 g/t silver and 0.17 g/t gold over 2.55m.

Underground drilling is required within the San Martin tunnel itself to further define several high grade silver and gold zones identified by continuous chip sampling of the tunnel walls.  The zones, which occur at different locations along the length of the tunnel, are very difficult and expensive to drill from surface due to topographic conditions. The surface is about 175 vertical metres above the 500 level adit and the steep hillside makes drill pad preparation only possible in certain areas.

 

San Timoteo Drill Hole Plan

San Timoteo - Succursal Drill Hole Assays