Santa Catalina Mining Corp. Announces Exploration Agreement for Pilar Project in Mexico

Strategic Insights -

Santa Catalina Mining Corp., a Vancouver-based company, has signed an exploration agreement for the Pilar Project, a 2431-hectare property located in the State of Sonora, Mexico. The project is situated near the town of Suaqui Grande, approximately 177 kilometers southwest of Hermosillo, the capital of the State of Sonora. The property is part of the mineralized belt that includes Eldorado's La Colorada Mine and Placer Dome's Mulatos project. The agreement provides Santa Catalina Mining Corp. with an option to purchase the property for a total purchase price of US$1.7 million.

Key Takeaways:

  • The Pilar Project spans approximately 2431 hectares (6,000 acres) in the State of Sonora, Mexico.
  • The project is situated near the town of Suaqui Grande, 177 kilometers southwest of Hermosillo, the capital of the State of Sonora.
  • The property is part of the mineralized belt that includes Eldorado's La Colorada Mine and Placer Dome's Mulatos project.
  • The option price for the project is US$260,000, payable over 2.5 years, with a final payment of US$1.44 million in year three.
  • The Company plans to conduct an aggressive exploration program, including trenching and sampling, geologic mapping, and ground geophysics, followed by a comprehensive drill program.
  • The primary target of the project is the old La Guadalupana gold mine, where high-grade open pit and shaft exploitation took place early in the 20th century.
  • Preliminary evaluation has identified an exploration target of 420m by 200m, anomalous for gold within a zone of argillic alteration.
  • The project has the potential for significant gold mineralization, with chip sample values as high as 31.7 gpt gold.
  • Parallel shears have been identified, with lower-grade mineralization stockworks separating areas of higher-grade mineralization.
  • The Company plans to begin its exploration program immediately, with a focus on determining the project's potential for significant gold deposits.

Statistics:

  • The Pilar Project spans approximately 2431 hectares (6,000 acres).
  • The option price for the project is US$260,000, payable over 2.5 years.
  • The final payment for the project will be US$1.44 million in year three.
  • The total purchase price for the project is US$1.7 million for a 100 percent interest.
  • Preliminary evaluation has identified an exploration target of 420m by 200m anomalous for gold.
  • Chip sample values have reached as high as 31.7 gpt gold.

Sources:

  • Santa Catalina Mining Corp. (1996, January 3). Santa Catalina Mining Corp. Announces Exploration Agreement for Pilar Project in Mexico. Business Wire.