Sampling confirms bulk tonnage potential at La Reyna de Oro
Consolidated Magna Ventures Ltd CMV
Shares issued 15,061,705 May 23 close $0.85
Mon 26 May 97 News Release
Ms Julie Hunter reports
The company has commenced preliminary surface and underground sampling on
the Reyna de Oro property in the Urique-Batopilas area of western Chihuahua
State, Mexico. This past producer, recently optioned by the company, was
formerly part of the Mexican mining reserve. It was reported to host a
significant mineral inventory of gold mineralization and Magna's sampling
is confirming the potential for such a system. Selected results from
Magna's program and previous sampling campaigns are:
Area Type Width Gold
(m) g/t
Magna (1997)
Cuse surface 27.0 3.45
Cuse Viejo underground 45.0 2.51
Cuse Nuevo underground 12.0 0.93
Vicente surface 57.0 4.52
Narciso surface 52.0 0.27
Narciso adit underground 25.0 0.05
Minera Metalica de Chihuahua
Cuse and Vicente underground
average 114 samples 13.6
Independent Evaluation (1992)
Upper Cuse surface 26.0 2.12
Marina/Silverio surface 62.0 2.99
Tahonas surface 35.0 1.12
Fomento Minero (1990)
Cuse & Vicente underground
average of 35 samples 10.78
University of Chihuahua (1990)
Vicente surface 10.95 6.87
Vicente surface 18.0 1.61
Cuse surface 16.4 0.95
Silverio surface 13.3 1.28
Of particular interest from the above table, underground sampling from Cuse
Viejo of 45m grading 2.51 g/t Au was the average over the entire length of
the drift which started and ended still in mineralization. Also the Vicente
Tunnel which underlies the highest surface sampling of 57m grading 4.52 g/t
is caved at the portal and was unavailable for sampling. The Vicente Tunnel
historically produced the best underground results.
The Vicente and Cuse zones are roughly 125m apart and are only two of many
zones of higher grade gold mineralization known on the property. Several
other short adits and pits are also present although access to some of
these is limited by caving, either at the entrance or internally. Magna has
been able to sample only three of these to date and is working to clear out
the others.
Magna's samples were taken as 3m continuous chip channel samples, both on
surface and in the underground workings. Surface samples by previous
workers are believed to have been a combination of continuous and selective
chip samples. The underground sampling by Minera Metalica de Chihuahua and
by the Fomento Minero (a branch of the Mexican government) is, as of yet,
unsubstantiated.
Magna's samples have been analyzed at SGS-XRAL in Hermosillo and American
Assay Laboratories in Tucson by fire assay with an atomic absorption (AA)
finish. Selected samples were reassayed by the same method and some were
checked with a gravimetric finish. Repeatability of the results is good and
the consistency of grade between the various sampling campaigns leaves the
company confident in the validity of the numbers.
The Reyna de Oro property consists of 1064 hectares approximately 29
kilometres west of Batopilas and 21 kilometres southwest of Urique, and is
accessible by road. It lies roughly 18 kilometres west-northwest of
Francisco Gold's El Sauzal property where recent drilling has returned
impressive gold intersections.
At Reyna de Oro, epithermal gold mineralization is hosted in a suite of
andesitic pyroclastic volcanic rocks of Tertiary age. A north-northwest
trending fault zone cuts and offsets the volcanic stratigraphy, although
the amount and direction of displacement is not yet evident. Less
prominent, northeast-trending faults may comprise a conjugate set of
structures and the two combine to yield locally intense fracturing of the
rocks.
Alteration is extensive and consists of argillization, propylitization,
silicification and patches of strong iron-manganese staining, all across
widths of 100 to 150 metres and over a length in excess of 300 metres
across the hillside. Gold grades are anomalous throughout the alteration
zone but the controls on higher grade values are not yet clear. The rock is
generally oxidized on surface but fresh sulphides can be seen in some of
the adits and where the rock is more highly silicified. The depth of
oxidation is expected to vary with rock type and the intensity of
alteration and fracturing.
Although there are several adits, development work has not been extensive
and past production figures are not available. Previous mining, by small
scale miners, was directed toward underground exploitation of high grade
structurally controlled mineralization. Although high grade mineralization
does exist on the property (Magna obtained grab samples returning up to
31.68 g/t gold and a 3m channel sample of 24.72 g/t gold), veins are not
common. Rather, the gold appears to be associated with fine, disseminated
and stockwork pyrite with lesser amounts of silver, copper, zinc and lead
mineralization. As such, the small scale miners could not make a profit on
the lower grade stockwork-style mineralization. The large-tonnage, open-pit
potential, which is significant, has apparently not been considered in the
past and the property has never been drilled.
A field crew is currently being assembled to begin work at the Reyna de Oro
property. Phase I exploration will consist of the rehabilitation of the
road and adits, grid work, mapping and sampling (surface and underground),
an IP survey and preliminary diamond drilling. It is management's belief
that a large mineralizing system exists at Reyna de Oro and it is the
company's intent to advance this project as quickly as possible.
This acquisition comes about as a result of Magna's growing presence in
northern Mexico. The company is currently setting up an exploration office
in the city of Chihuahua from which it will operate all of its Mexican
projects.
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