Cerro Resources announced that it has secured exploration rights and an option to acquire 100% of a gold and silver project with high exploration potential in the heart of the Mascota Navidad Mining District in Jalisco State near the western coast of central Mexico.
The company has the option to acquire the Espiritu Santo gold and silver project, which spans 5800 square hectares and is located about 130 kilometers west of Guadalajara and 50 kilometers east of Puerto Vallarta for USD 4 million.
Cerro will pay an additional USD 1 million for the first 1 million ounces of JORC measured and indicated gold and USD 500,000 for each additional 500,000 ounces up to a maximum of USD 5 million.
Cerro was drawn to the area by the prolific occurrences of major veins cross cutting the project. The known mineralized veins occur along a 3 kilometer strike length by almost 2 kilometers in width. It is possible that more structures and vein systems could be discovered within the property, increasing both the potential strike length and width.
The Espiritu Santo gold and silver project is surrounded by the two old mining sub districts of San Sebastian del Oeste and Navidad. During the 1500s and 1600s the surrounding sub-districts of San Sebastian del Oeste, Los Reyes, Real de Oxtotipac and Santiago de los Pinos became important production areas.
The small but high grade San Quiteria mine within the San Sebastian del Oeste sub district continues today. Earlier work in this area included a total of 344 rock chips samples taken from surface, underground and trenches. From these samples a compilation of 86 samples of the different structures were made, separated by vein and highlighted by anomalous value.
Results returned included gold greater than 0.7 parts per million, silver greater than 10 parts per million, copper greater than 1000 parts per million and gold equivalent greater than 0.8 parts per million.
Cerro plans to begin initial target selection exploration this month. A work program aimed at evaluating the gold-silver potential of Espiritu Santo is being developed to include geologic mapping, surface sampling to include rock and soils and the possible use of x ray fluorescence technology.
