Tom Cat - KLA has also a large piece property in Mexico
Mar 22, 1999
Authorized Shares: 50,000,000
Issued Shares: 36,876,005
VSE Symbol: KLA-V
FAJA DE PLATA, CENTRAL MEXICO
Title Received for Geomex-4 1,400,000 acres (83 miles x 25 miles)
TEN (10) PRIORITY TARGET AREAS TO BE REFINED FOR DRILLING
Joint Venture Partner - GOLDWATER RESOURCES LTD.
Project Manager Kevin McAndrews resigned March 4, 1999 to return to his country, the United States of America after eight years in Mexico. I wish him well in whatever he does.
Mr. McAndrews' assistant, Dr. Craig Gibson, based in Guadalajara, Mexico, has been appointed Project Manager. This is his fifth year as an explorationist in Mexico. Dr. Gibson is fluent in Spanish. Find enclosed his current report on Geomex-4.
GEOMEX-4 UPDATE
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The Mexican Mines Department issued title number 209189 for Geomex-4 on February 26, 1999, for a surface area of 603,079 hectares (1,490,209 acres). Geomex-4 is the largest concession in the Kalahari block, and I believe it is the largest concession ever titled by the Mexican government. The concession covers a large part of the favourable Faja de Plata mineral belt between the San Nicolas VMS discovery and the well mineralized Leon-Guanajuato district.
During 1998, exploration efforts were focused on assembling a geological data base of the region and developing areas for further exploration. This was accomplished by acquiring a regional gravity database with over 55,000 stations, probably the best available, as well as obtaining the latest geological information from government sources, visiting windows of Mesozoic rocks and mines in the region, visiting the San Nicolas deposit, and compiling information from government sources on depth to basement from water well data and geophysical exploration for aquifers. Data acquisition and compilation is an ongoing process with additional information constantly being added to the data base.
Greenstone that hosts the San Nicolas massive sulfide deposit formed in a Mesozoic volcanic arc extending from north of Zacatecas to south of Guanajuato in central Mexico. The Geomex-4 concession of Kalahari covers most of the Mesozoic greenstone belt between the city of Aguascalientes and Lagos de Moreno and is about 83 miles east-west by 25 miles north-south. Although the concession is largely covered by Tertiary and Quaternary volcanic and sedimentary rocks, regional geology and the regional gravity database indicate the presence of relatively shallow Mesozoic basement. Gravity highs occur over shallow fault blocks of Mesozoic basement separated by gravity lows over downdropped basins filled with thick sequences of Tertiary and Quaternary cover. Most exposures of Mesozoic rocks and virtually all significant mining districts in the region correspond to the gravity highs.
Twenty five (25) gravity highs, each representing an exploration target area, occur on Geomex-4.
Several windows of Mesozoic rocks occur within and near Geomex-4. Of particular importance is the window at La Tomatina on Geomex-8 just north of the boundary with Geomex-4. At La Tomatina, greenstone composed of mafic volcanic rocks with intercalated graywacke and local fine-grained mafic intrusives occurs as an erosional window in Tertiary volcanic rocks on the west side of the Aguascalientes graben. The rocks exposed in the window are very similar to the hangingwall rocks at the San Nicolas deposit and show weak to moderate chloritic and sericitic alteration, syngenetic manganese mineralization, and local copper oxide and anomalous base and precious metal values. The window is also coincident with a gravity high. The greenstone extends to the south onto Geomex-4.
Of the twenty five gravity highs present on Geomex-4, ten priority target areas have been selected for follow-up exploration based on structural trends and known greenstone occurrences. These ten target areas extend south-east along a regional structural trend from the La Tomatina window to the Leon-Guanajuato greenstone, a distance of 75 kilometers (47 miles). Surface examination and water well information have confirmed that five of the targets are underlain by greenstone at shallow depths, ranging from 0 to 165 m (0 to 540 feet). Pyrite is reported from three water wells. No subsurface information is available for the other targets, but structural relationships imply the presence of shallow greenstone.
Individual target areas are 6 to 20 square miles in size and can be effectively evaluated for drilling by geophysics. Regional and detailed geophysical and geochemical exploration methods are being evaluated. Exploration is also continuing to develop other target areas.
Reducing the land position to cover the known 25 target areas is currently underway.
KALAHARI RESOURCES INC. - GOLDWATER RESOURCES LTD. JOINT VENTURE
Goldwater Resources Ltd., subject to regulatory approval and financing, has the right to earn a 50% interest in Geomex-4 by spending $1,600,000 U.S. (4 phases of $400,000 U.S.) over a 24 month period.
Please remember that the Faja de Plata Mineral Belt is the richest silver belt in the world over the last 500 years.
This belt is now the host for the world class multi-billion dollar San Nicolas VMS discovery of Teck Corporation and Western Copper.
Western Copper will shortly be active on Geomex-6 (a 220,000 acre concession) a joint venture partner with Kalahari.
Ground geophysics, refining gravity highs and geological windows, is the last phase to be completed before drilling.
Kalahari is waiting for title on 7 remaining blocks representing approximately 1,000,000 additional acres on this belt.
KALAHARI RESOURCES INC.
Albert W. Applegath (signed)
President
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