The San Jose Property is comprised of three mining concessions (5,580 hectares in size) located in Chihuahua, Mexico near the USA border, approximately 125 km west of El Paso, Texas (Juarez, Chihuahua, Mexico). The Property is also located 52 km northwest of the underground Bismark Mine operated by Grupo Peñoles. The Bismark Mine commenced production of silver, lead, zinc and copper in 1992 and mining has continued at a 2,500 tpd production rate. The Bismark Mine is regarded as a comparative exploration model for the San Jose Property, and mineralization at the Bismark Mine is not indicative of any mineralization that may be hosted on the San Jose Property.
The primary focus of new work at Tejamen should consist of follow up core drilling. A program to drill 4,800m in 12 core holes is proposed. Core holes can be drilled to confirm previous RC drilling and better define geological parameters and block model grades. Holes can be extended to explore the potential of high grade feeder veins and the significant potential for mantos at depth, below the volcanic host rocks. Re-logging and re-assaying of historical samples needs to be done and the geological model refined. Additional metallurgical testing needs to be done, to better understand cyanide recoverability and the potential for flotation for higher grade Ag mineralization associated with potentially recoverable Pb.
Outcrop sampling (94 channels) identified two parallel gold-silver zones with over 270 meters of strike length, known as the El Doctor zone (Noche Buena). The highest grade sample was 1.4 meters of 110ppm gold and 52ppm silver. The average Au grade of 93 samples, exclusive of the high grade 110ppm Au sample, is 3.2ppm. 72 of 94 samples contained gold grades over 0.50 g/t. The Ag grades range from trace to 150ppm, averaging 52.7ppm. Re-logging of previously-drilled nearby holes was started to assist in planning a drill program to test the new zones. Drilling has not tested the intersection of the veins with underlying schist/limestones. Previous shallow drilling encountered anomalous Au and Ag grades at shallow depths in the zone.