A PEA-Stage Heap Leachable Gold/Silver Asset with ~2 g/t AuEq grade in Stable Sinaloa

Location & Setting

  • Sinaloa State, Mexico
  • 200 km north of Mazatlan, 30 km southeast of Cosalá (pop 17,000), or a 3 hour drive from the Company's Mexican office in Culiacan
  • ~6,000 ha contiguous land package
Mine Plan / Stage
  • PEA completed in 2013 by Vista Gold Corp.
  • Minera Alamos acquired the project from Vista Gold Corp. through an Option Agreement in October 2017
  • A team is establishing a presence on site to prepare an updated PEA contemplating a simple in-house engineered and designed heap leach operation

Guadalupe de Los Reyes Project Background

Gold and silver were discovered at Guadalupe by the Spanish in the late 1700s and mining occurred in the area for over 150 years up until the 1950s.  The main Guadalupe underground operation opened in the late 1800s and to date is the most significant source of gold production in the district.  It is estimated (historical estimates only) to have produced approximately 500-600,000 ounces of gold and 40 million ounces of silver over its operational life at reported grades of +10 g/t Au and +500 g/t Ag.  Most of the historical production is derived from a single section of mineralized structures over a length of approximately 2 km.  At least eight other mineralized zones have been identified at site along three structural arms of the same large regional system.  In total, the system mineralization has been mapped at surface over a total combined distance of approximately 10 km.

From the 1950s through the 1980s there was limited activity in the Guadalupe area other than exploration reconnaissance studies.  The one exception was a small vat leaching operation that was constructed and operated by the local concession owner in the late 1980s.  It is reported that during this period approximately 32,000 tonnes of coarse crushed mineralized rock (5-6 g/t au) was leached with cyanide in open vats.

Modern drilling was re-initiated at the Guadalupe project area in the 1990s and was targeted at defining a significant area of shallow lower grade gold/silver mineralization in areas surrounding the Guadalupe underground operations.  Since that time, in excess of 40,000 meters of drilling (RC and diamond) have been completed within the current project boundaries.