Source Exploration (SOP-V) May 29, '14 is pleased to announce the signing of a diamond drilling contract for commencement of its 2014 Phase 2 exploration program at the Las Minas property, Veracruz, State, Mexico. Source has contracted with K.D.L. Mexico S.A de C.V. for a minimum of 2,000 metres of drilling, scheduled to get underway in the first week of June, 2014.The main focus of the program will be on expanding the higher-grade skarn mineralization outlined by earlier drilling at the Santa Cruz in preparation for an initial resource calculation as well as drill testing high priority targets at the Juan Bran and Cinco Senores sites.
"We are very excited about the results from our Phase 1 winter program," stated David Baker, Executive Chairman. "The step-out drilling at Santa Cruz intersected wide mineralized zones extending from surface and containing high-grade intersections peaking at 10.06 g/t Au Eq(1) over 16.0 metres. Additionally, drilling at El Dorado further delineated the down dip projection of the mineralized zone. Both zones remain wide open for expansion. We look forward to expanding the high-grade Santa Cruz zone and testing additional high potential targets that have been identified on the property."
Table 1 provides a summary of highlight results from the Phase 1 drilling program (see press releases dated April 7 and May 26, 2014).
Table 1 Selected Las Minas Phase 1 Drill Results
| Hole No. | From
(M) | To
(M) | Interval
(M) | Gold
g/t | Silver
g/t | Copper
% | Au Eq
g/t | | LM-14-SC-01 | 0.0 | 114.8 | 114.8 | 0.77 | 3.25 | 0.46 | 1.60 | | Including | 38.0 | 52.0 | 14.0 | 1.37 | 4.16 | 1.25 | 3.57 | | Within | 0.0 | 52.0 | 52.0 | 0.69 | 3.31 | 0.52 | 1.64 | | Including | 89.0 | 108.8 | 19.8 | 1.96 | 8.98 | 1.05 | 3.89 | | Within | 71.7 | 112.8 | 41.1 | 1.19 | 4.65 | 0.59 | 2.27 | | | | | | | | | | LM-14-SC-02 | 0.0 | 32.0 | 32.0 | 1.08 | 6.53 | 0.57 | 2.14 | | Including | 2.0 | 14.0 | 12.0 | 1.31 | 7.07 | 0.54 | 2.41 | | | | | | | | | | Hole No. |
From
(M) |
To
(M) |
Interval
(M) |
Gold
g/t |
Silver
g/t |
Copper
% |
Au Eq
g/t | | LM-14-SC-03 | 0.0 | 97.2 | 97.2 | 1.19 | 9.42 | 0.79 | 2.70 | | Including | 75.2 | 91.2 | 16.0 | 4.39 | 37.82 | 2.96 | 10.06 | | Within | 52.7 | 97.2 | 44.5 | 2.30 | 19.07 | 1.57 | 5.30 | | | | | | | | | | LM-14-SC-04 | 0.0 | 13.7 | 13.7 | 0.39 | 4.30 | 0.96 | 2.10 | | Including | 7.7 | 9.7 | 2.0 | 1.00 | 22.50 | 6.05 | 11.69 | | Within | 0.0 | 82.0 | 82.0 | 0.23 | 2.40 | 0.31 | 0.80 | | And within | 0.0 | 51.6 | 51.6 | 0.24 | 3.00 | 0.39 | 0.95 | | And | 159.0 | 186.5 | 27.5 | 1.49 | 1.77 | 0.25 | 1.94 | | Within | 159.0 | 204.0 | 45.0 | 1.03 | 1.52 | 0.22 | 1.44 | | | | | | | | | | LM-14-SC-05 | 13.0 | 19.0 | 6.0 | 1.90 | 5.20 | 0.42 | 2.70 | | | | | | | | | | LM-14-SC-06 | 51.0 | 59.0 | 8.0 | 0.47 | 4.20 | 0.25 | 0.96 | | | | | | | | | | LM-14-ED-08 | 54.6 | 82.9 | 28.3 | 0.46 | 2.66 | 0.66 | 1.64 | | Including | 54.6 | 64.7 | 10.1 | 0.68 | 4.40 | 1.13 | 2.68 | | | | | | | | | | LM-14-ED-09 | 18.9 | 48.2 | 29.3 | 0.29 | 1.54 | 0.26 | 0.76 | | Including | 18.9 | 26.4 | 7.5 | 0.99 | 4.62 | 0.97 | 2.72 | | | | | | | | | | LM-14-ED-10 | 24.3 | 34.6 | 10.3 | 0.32 | 2.81 | 0.19 | 0.69 | | Including | 29.2 | 32.6 | 3.4 | 0.59 | 4.56 | 0.30 | 1.18 | | | | | | | | | | | | | | | | | | LM-14-ED-12 | 52.2 | 73.7 | 20.4 | 0.70 | 3.46 | 0.51 | 1.62 | | including | 54.8 | 60.8 | 6.0 | 1.37 | 5.10 | 1.13 | 3.38 | | Within | 52.2 | 76.4 | 11.1 | 1.14 | 5.07 | 0.89 | 2.74 | | | | | | | | | | LM-14-ED-14 | 75.8 | 85.0 | 9.2 | 0.86 | 3.36 | 0.46 | 1.69 | | | | | | | | | | | | | | | | | | LM-14-ED-15 | 49.7 | 80.9 | 31.2 | 0.58 | 2.54 | 0.06 | 0.73 | | Including | 60.7 | 72.0 | 11.3 | 1.42 | 3.50 | 0.14 | 1.72 | | | | | | | | | | | | | | | | | | LM-14-ED-16* | 88.6 | 93.0 | 4.4 | 0.48 | 4.25 | 0.63 | 1.62 | | | | | | | | | | LM-14-ED-17 | 84.7 | 90.3 | 5.6 | 0.41 | 4.68 | 0.45 | 1.26 | | | | | | | | | | LM-14-ED-18 | 28.3 | 33.9 | 5.6 | 0.61 | 1.23 | 0.49 | 1.46 |
Additional information is required to determine true widths. A drill map showing the location of the holes at Santa Cruz may be viewed on the Company's website at www.sourceexploration.com - see Projects - Las Minas - Current maps. Drill hole sections can be found at Projects - Las Minas - Drill Sections.
| (1) | Gold equivalent (Au Eq) calculations use metal prices of US $1200/oz. for gold, US $19.00/oz. for silver and US $3.00/lb. for copper. No adjustments have been made for potential relative differences in metal recoveries. | | | | Au Eq g/t equals Au g/t + (Ag g/t x 0.016) + (Cu% x1.71). |
* Intersect an old adit
About Las Minas
The Las Minas Project hosts near-surface gold-silver and copper skarn mineralization and high-grade gold-silver epithermal vein deposits. The project is comprised of six mineral concessions covering approximately 1,616 hectares (3,995 acres), with several small scale, past-producing mines and numerous untested targets.
The district is host to one of the largest under explored gold-silver and copper skarn systems known in Mexico, and has a production history that extends back to the Aztec era. The Las Minas granodiorite intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions. The mineralization controls and association with magnetite appear to be similar to the Guerrero Gold belt, which is the site of the Los Filos and Morelos gold deposits.
Las Minas is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets discussed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. |
