VALSEQUILLO SILVER PROJECT, MEXICO
During the course of the Company’s previous property examination in 2012, a total of 176 rock samples were taken. These samples are best described as characterization samples as they were generally grab samples from outcrops (65%) and float/dump material (35%) at some of the many old workings on the Property. Assay values ranged from below detection to 2.68g/t gold (average 0.15 g/t gold), 629 g/t silver (average 34 g/t silver), 9.47% copper (average 0.28% copper), 16.55% lead (average 0.52% lead), and 6.38% zinc (average 0.5% zinc).
Valsequillo Silver project is located in southern Chihuahua State, Mexico, approximately 40 kilometres southeast of the city of Hidalgo Del Parral. It lies within the pre-eminent Altiplano Polymetallic Belt of north-central Mexico.
The 2,840 hectare property covers the uppermost portion of a Tertiary system with potential for high grade and/or bulk tonnage, polymetallic-precious metal type mineralization analogous to the setting at the nearby San Francisco del Oro, Santa Barbara District within the Altiplano Polymetallic Belt.
Valsequillo is unexplored by modern methods and The Company it can be rapidly and cost-effectively brought to the drill stage once surface access rights have been secured. The Company intends to immediately commence negotiations to secure the required surface access rights, but cannot predict with any certainty how long it will take to do so, particularly if it is necessary to apply to the Director General of Mines for the grant of the easement under the Mexican Mining Law.
Access and infrastructure are excellent, topography is moderate, with elevations averaging 1,700 metres, and water is readily available.
Initial reconnaissance work carried out in 2012 identified two significant north-northwest trending structural corridors outlined by extensive artisanal workings that follow en-echelon and segmented precious and base-metal bearing quartz-sulphide (pyrite, galena, sphalerite and chalcopyrite) veins within a broad hornfels gossan. The mineral-alteration systems identified to date remain open for expansion in all directions.
In October 2015, Wealth has successfully renegotiated the original 2012 option agreements under which it held the option to acquire a 100% interest in the Valsequillo property from two private Mexican individuals. The renegotiated agreements provide for lower overall option payments spread over a longer period, and are primarily tied to the Wealth’s obtaining the necessary surface access. Under the renegotiated agreements, Wealth can acquire a 100% interest for a total consideration of US $6.0 million over a 90-month (7.5 years) period.
Santa Barbara District (SFSB District)
The SFSB District, located 40km northwest of Valsequillo, hosts mid-Tertiary polymetallic quartz sulphide vein deposits, which are among the largest Lead-Zinc-Copper-Silver deposits in Mexico. These deposits are the closest analogy for the mineralization observed at surface at Valsequillo. Mineralization was first discovered in 1547 by a group of Spanish explorers who discovered gold ore in the massive Mina del Agua vein, located beside the Rio Santa Barbara. Mining in the area began as early as 1560 and Mina del Agua became the largest gold mine in North America for the next four decades.
Within the SFSB District, the veins are hosted by Cretaceous Parral shale and, since 1650, have produced over 440 million ounces of silver (source: Grant & Ruiz, 1988; Econ. Geol. Vol. 83 pp. 1683-1702). Total silver production from the district as a whole is estimated at 550 million ounces. Significant production has come from vein ores (95%) and from several vein-related massive sulphide replacement bodies (5%).
Valsequillo Property Detail
Past artisanal mining activity concentrated on a number of epithermal, zinc-lead-copper-silver veins and/or stock-work and silicified zones. Mineral occurrences are predominantly concentrated within two northwest-trending corridors along the eastern and western margins, respectively, of an elongate color anomaly (gossan) occupying the bulk of the property. There is no evidence of modern exploration having occurred on the site.
During the course of the Company’s previous property examination in 2012, a total of 176 rock samples were taken. These samples are best described as characterization samples as they were generally grab samples from outcrops (65%) and float/dump material (35%) at some of the many old workings on the property. Assay values ranged from below detection to 2.68g/t gold (average 0.15 g/t gold), 629 g/t silver (average 34 g/t silver), 9.47% copper (average 0.28% copper), 16.55% lead (average 0.52% lead), and 6.38% zinc (average 0.5% zinc).
At the western edge of the gossan, a north-northwest trending corridor up to 200 meters wide can be traced for at least 1,500 metres and is still open in both directions along strike. To the south, the vein system trends onto a third party claim. There are two main veins and associated splays within the corridor. The west vein dips steeply west, and the east vein dips steeply east; both consist predominantly of vuggy, epithermal quartz with varying amounts of calcite and barite as well as scattered clots of base metal sulfides, secondary iron oxides and minor sulfosalts. Base metals predominate, but copper and silver values are significantly higher than those present in the Eastern Corridor. They are most similar to late-stage veins in the SFSB District.
At the eastern edge of the gossan, a series of en-echelon north-south quartz veins/shear zones can be traced for approximately 3,000 metres along strike. This structural zone or corridor is at least 400 metres wide and contains a number of mineralized quartz-calcite-barite-sulphide veins which vary from 1 to 5 metres wide. In unoxidized float and dump material, sulfides make up approximately 5 to 10% of the vein material and grades average 5% combined lead-zinc, 0.5% copper, 30 g/t silver and 20 to 100 ppb gold.Locally, there are shoots of higher grade material which returned values up to 10% combined lead-zinc, 1% copper and 100 to 150 g/t silver. Gold grades are higher than in the Western Corridor, with many values in the 0.2 g/t to 1.0 g/t range. These veins are most similar to early-stage veins in the SFSB District.