Technical Report- 43-101 PDF

Transcription

1.0 TITLE PAGE
43-101
TECHNICAL REPORT
and
RECOMMENDED EXPLORATION
on the
COBRIZA PROPERTY
San Dimas District, Durango State
Mexico
(Revised)
centred near
UTM (NAD:27 Mexico) 409,764E and 2,661,453N
for
HELLIX VENTURES INC.
125A 1030 Denman Street
Vancouver, BC. Canada V6G 2M6
Author
Laurence Sookochoff, PEng.
SOOKOCHOFF CONSULTANTS INC.
Effective Date
September 24, 2007
Hellix Ventures Inc.
Technical Report & Proposed Exploration
Cobriza Property, Durango State, Mexico
2.0 TABLE OF CONTENTS
page
3.0 SUMMARY -----------------------------------------------------------------------------------
5.
4.0 INTRODUCTION AND TERMS OF REFERENCE FOR THIS REPORT ----
6.
4.1 Terms of Reference and Purpose ------------------------------------------------------
6.
4.2 Source of Information and Data -------------------------------------------------------
6.
Figure 1. Cobriza Property Location ------------------------------------
following
6.
5.0 RELIANCE ON OTHER EXPERTS ----------------------------------------------------
7.
5.1 Non Qualified Opinions Relied Upon -------------------------------------------------
7.
6.0 PROPERTY DESCRIPTION AND LOCATION -------------------------------------
7.
6.1 Description of Concession ---------------------------------------------------------------
7.
6.2 Property Location -------------------------------------------------------------------------
7.
6.3 Interest and Obligations -----------------------------------------------------------------
7.
Figure 2..Concession Map (showing sample locations) ----------------
following
7.
6.4 Permits and Environmental ------------------------------------------------------------
8.
Figure 3. San Dimas District -------------------------------------------------------------------
8.
7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE AND PHYSIOGRAPHY -------------------------
8.
7.1 Access ----------------------------------------------------------------------------------------
8.
Photo 1. Panoramic View of Tayoltita --------------------------------------------------------
9.
7.2 Local Resources and Infrastructure --------------------------------------------------
9.
7.3 Water and Physiography ---------------------------------------------------------------- 10.
7.4 Potential Areas for Tailings Disposal and Plant Sites------------------------------- 10.
8.0 HISTORY AND PREVIOUS WORK ---------------------------------------------------- 10.
8.1 Prior Ownership -------------------------------------------------------------------- 10.
8.2 Work Completed by Previous Owners ------------------------------------------ 10.
8.3 Production History ----------------------------------------------------------------
10.
8.4 Historical Resource Estimates --------------------------------------------------
11.
8.5 History of Exploration on the Cobriza Property
by Hellix Ventures Inc. -------------------------------------------------------
Sookochoff Consultants Inc.
September 24,2007
page 2 of 31
11.
2.0 TABLE OF CONTENTS (cont’d)
9.0 GEOLOGICAL SETTING ---------------------------------------------------------------
11.
9.1 Regional Geological Setting ------------------------------------------------------ 11.
9.2 San Dimas Veins -------------------------------------------------------------------- 11.
9.3 San Dimas Structure --------------------------------------------------------------
11.
Photo 2. Surface Exposure of San Dimas Veins -------------------------------------------
12.
Figure 4. Cobriza Area Geology -------------------------------------------------------------- 13.
9.4 Property and Local Geology -----------------------------------------------------
13.
9.4.1 Local Geology -----------------------------------------------------------
13.
9.4.2 Cobriza Structures -----------------------------------------------------
14.
9.4.3 Cobriza Veins -----------------------------------------------------------
14.
10.0 DEPOSIT TYPES -------------------------------------------------------------------------
15.
Figure5. Section of the Cobriza Mine ------------------------------------------------------
15.
11.0 MINERALIZATION --------------------------------------------------------------------
15.
11.1 District -----------------------------------------------------------------------------
15.
11.2 Cobriza Property -----------------------------------------------------------------
16.
Photo 3. Veta Falla (Vein 3) -------------------------------------------------------------------
16.
-------------------------------------------------------------------------
17.
13.0 DRILLING ---------------------------------------------------------------------------------
17.
14.0 SAMPLING METHOD AND APPROACH -----------------------------------------
17.
14.1 Author’s 2007 Sampling ---------------------------------------------------------
17.
14.1.1 Sampling Method ---------------------------------------------------------------
17.
12.0 EXPLORATION
Table 1. Sample Coordinates -----------------------------------------------------------------
18.
14.1.2 Sample Reliability --------------------------------------------------------------
19.
Table 2 Sample Description -------------------------------------------------------------------
19.
Table 3 Sample Particulars --------------------------------------------------------------------
19.
15.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY ---------------------
20.
16.0 DATA VERIFICATION -----------------------------------------------------------------
20.
16.1 Previous Sampling ---------------------------------------------------------------
20.
Author’s Sampling ---------------------------------------------------------------------
21.
September 24,2007
page 3 of 31
2.0 TABLE OF CONTENTS (cont’d)
Photo 4. Tayoltita Mill Tailings Pond --------------------------------------------------------
21.
17.0 ADJACENT PROPERTIES ------------------------------------------------------------
22.
Photo 5. Luismin Mine Portals at Tayoltita ------------------------------------------------- 23.
18.0 MINERAL PROCESSING AND METALLURGICAL TESTING -------------- 24.
19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE ------------ 24.
20.0 OTHER RELEVANT DATA AND INFORMATION ------------------------------ 24.
21.0 INTERPRETATION AND CONCLUSIONS ----------------------------------------
24.
22.0 RECOMMENDATIONS ----------------------------------------------------------------
25.
22.1 Estimated Cost of the Phase 1A Recommended Program ---------------
26.
22.1 Estimated Cost of the Phase 1B Recommended Program ---------------
27.
23.0 REFERENCES -----------------------------------------------------------------------------
28.
24.0 DECLARATION OF CERTIFICATE OF AUTHOR
LAURENCE SOOKOCHOFF, PEng ---------------------------------------------
29.
Appendices
Appendix A ---- ASSAY CERTIFICATE -------------------------------------------------
30.
Appendix B ---- SGM PLAN MAP of the COBRIZA PROPERTY
GEOLOGY and WORKINGS ------------------------------------
September 24,2007
page 4 of 31
31.
3.0 SUMMARY
Hellix Ventures Inc. has an option to acquire a three contiguous exploitation 120 hectare concession
area designated as the Cobriza property (the “Property”). CMSM (Compania Mina de la Sierra Madre
CV) – a wholly owned Mexican subsidiary of Hellix Ventures Inc. has an option to purchase
agreement with Ricardo Montano, the owner of the three concessions, subject to payment of cash,
options, and shares over a five-year period. A work commitment is also involved.
The Property is located in Durango State, Mexico, 150 kilometres west-northwest of the city of
Durango, Mexico. The Property is also located within the historic San Dimas district where highgrade gold-silver veins were discovered around 1757 (Dahigren, 1882), and which contains at least
80 known veins. (Luismin, 1991).
The Property incorporates the Cobriza epithermal vein system where the Cobriza vein was
selectively mined for its high-grade mineralization to a depth of approximately 70 metres. Production
figures are not available
The Property is also located within ten km of Luismin’s Tayoltita mine and within four km of the
town of Tayoltita where Luismin (Goldcorp) operates a 2,100 tonne per day mill and where “ores”
from the San Dimas mines are processed. Luismin owns and operates two gold-silver mines from
which 1,085,700 tonnes of ore were milled in 2006 averaging 6.34 g/T Au and 328 g/T Ag with
production of 208,400 ounces of gold and 8,931,700 ounces silver (www.goldcorp.com).
In the district, ore is contained in over 120 gold/silver epithermal veins characterized by low
sulphidation and adularia-sericitic alteration. Veins pinch and swell and commonly exhibit
bifurcation, horse-tailing and cymoidal structures. The veins vary from a fraction of a centimetre in
width to over 15 metres, but average 2.0 metres. They have been followed underground from a few
metres in strike-length to more than two kilometres (Goldcorp).
The Cobriza property includes three principal N70E trending veins, two of which can be traced for
700 metres and 400 metres respectively through historic surface workings. The veins are more often
discontinuous as a result of offsetting by a series of step faults that slice the vein into segments and
shift the vein segments. In some stopes of the Cobriza workings, four metre wide sections of veins
are bounded by these cross faults. The veins also break down into stringer zones along strike in some
sections.
Undated exploration of the Cobriza Vein reportedly consists of direct headings driven along the veins
in several places and a series of now-filled surface pits dug into the vein outcrops and direct headings
along the various veins outboard from the stoped areas. These headings include several levels and
cross-cuts driven through the veins in the Cobriza Mine. A decline has been driven within the vein
beneath the principal old workings for some 35 metres to demonstrate the down-dip continuation of
the vein. Other workings on the property include the Leona adits, and the Mina Grande workings
(Megaw, 2004).
September 24,2007
page 5 of 31
3.0 SUMMARY (cont’d)
Three samples taken by Megaw (2004) from the walls of abandoned stopes returned gold values
ranging from 144g/T to 1084g/T, silver values ranging from 106.8 g/T to 3636 g/T, and lead values
up to 1.09%, zinc values up to 0.83%, and copper values up to 0.85%; erratic mineralization was also
reported. The exact locations of the Megaw sample was not reported, thus the results could not be
confirmed. The sample results reportedly do not reflect the grades actually produced from these
stopes nor are they necessarily reliable indicators of what lies beyond them deeper in the rock.
The erratic or localized higher grade mineralization of the veins was also evident from the author’s
sample results where selected samples of mineralized vein material from the Cobriza Mine (Luz)
level 6 dump returned significantly higher mineral values than the chip samples from random
locations of veins exposed in the Cobriza Mine (Luz) level 6 and from other sampled veins on the
Property.
It is recommended that a two phased exploration program comprised of geochemical, geophysical,
and geological surveys be completed on the Property in order to locate potentially economic mineral
zones within the known epithermal veins and to explore the property for additional mineral bearing
structures and/or veins on the Cobriza property. A two phased exploration program estimated to cost
$777,350.00 is recommended to explore the Property; Phase 1A of the recommended program is
estimated to cost $332,350.00 and should take three months to complete.
4.0 INTRODUCTION AND TERMS OF REFERENCE FOR THIS REPORT
4.1 Terms of Reference and Purpose
At the request of Mr. W. Brenner, President of Hellix Ventures Inc., the author was requested to
provide a geological evaluation of the Property as to the potential for the location of economic
mineral zones, and to prepare a report on the writer’s findings in accordance with NI 43-101.
4.2 Source of Information and Data
Information on the Property was primarily obtained from a report on the Cobriza property by Dr.
Peter Megaw, (Megaw, 2004) on a personal examination of the Cobriza property in August, 1994 and
November, 2002, numerous visits to the Tayoltita Mines and related Luismin properties between
1980 and 2001, review of unpublished exploration data generated on the San Dimas District and
Property and by former owners, and the published mining and scientific materials. The author,
Laurence Sookochoff, PEng performed a personal examination of the Property on July 11–12, 2007
and is also familiar with the geology and mineralization of the general area from a former property
examination made within the San Dimas District.
Information for the this report was also obtained from pertinent reports on the Property, and from
reports on adjacent and regional properties as listed in the Reference section of this report.
September 24,2007
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5.0 RELIANCE ON OTHER EXPERTS
5.1 Non Qualified Opinions Relied Upon
Any information from authors of publications as included in the References section of this report has
not been verified.
6.0 PROPERTY DESCRIPTION AND LOCATION
6.1 Description of Concession
The Property is comprised of three contiguous exploitation claims covering 120 hectares. The
original Cobriza claims were titled to Juan Sierra Olagaray and later purchased by Dr. Richard
Montano. Dr Montano has received “Constancias” or “Good Standing Certificates” for all claims
from the Mexican General Direction of Mines.
The property boundaries were located by the placement of concrete beacons on the on the concession
corners. These are subsequently surveyed with the information submitted to the Mines office as part
of the required “trabajos periciales”.
Concession
Area
Application No.
Title No.
Issue Date
Expiry Date
(Hectares)
Luz
40
025/06058
193384
19/12/1991
18 Dec 2016
Minitas
69
025/11371
165807
24/11/1963
12 Dec 2019
Coral
11
025/08810
172290
24/11/1963
28 Nov 2008
Legal opinions on titles and ownership of the claims comprising the Property are beyond the scope
of this report.
6.2 Property Location
The Property is located in central west Mexico on the border of the States of Sinaloa and Durango
125 kilometres northeast of Mazatlan, Sinaloa and 150 kilometres west northwest of Durango City in
the southern and southeastern parts of the historic San Dimas Mining District of western Durango
State. The property is accessed by aircraft in a 45 minute flight from either Mazatlan or Durango, or
by road through a ten hour drive from the city of Durango.
The UTM coordinates (NAD 27 Mexico) at the centre of the Property are 409,764 E 2,661,453 N.
6.3 Interest and Obligations
The interest, obligations, and terms of agreement of the Company are spelled out in an agreement
between Ricardo Montano and CMSM (Compania Mina de la Sierra Madre CV) – a wholly owned
subsidiary of the Company. This agreement consists of an option to purchase the property subject to
payment of cash, options, and shares over a five-year period. A work commitment is also involved.
September 24,2007
page 7 of 31
6.4 Permits and Environmental
No further permitting is required to carry out exploration work, and if needed, exploitation (subject to
standard environmental permits). An explosive permit has already been granted and remains in good
standing.
There are no environmental liabilities indicated or required.
Figure 3. San Dimas District
7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
7.1 Access
To access the Property, highway N° 40 (Durango-Mazatlan) is taken to El Salto westward from
Durango City. Thence an unpaved road is taken that connects the towns of Cebollas and Tayoltita.
The trip from the city of Durango to Tayoltita takes about 10 hours.
The portal of the Cobriza mine is located approximately 200 meters from the access road to
Tayoltita. From this point there is still an hour from Tayoltita.
September 24,2007
page 8 of 31
PHYSIOGRAPHY (cont’d)
7.1 Access (cont’d)
During the dry season Tayoltita can be accessed from San Ignacio, Sinaloa following the Piaxtla
Riverbed. The total distance from both points is approximately 80 km. This route is used by the
company Luismin to move heavy equipment to their mining operation.
It is also possible to travel to Luismin from Durango by an aerial taxi flight to Tayoltita.
The climate is defined by two seasons; the rainy season, which lasts from July to September and the
dry season, which lasts from October to June. Year-round exploration-mining-milling operations
could be carried out without any difficulty.
Photo 1. Panoramic View of Tayoltita
7.2 Local Resources and Infrastructure
Tayoltita is the most important population centre in the area with approximately 8,000 inhabitants,
including mining company personnel. Tayoltita is serviced with electrical power, telegraph and
telephone. Durango, an historic mining centre would be a source of experienced and reliable
exploration and mining personnel and a supply for most mining related equipment. Durango is
serviced daily by commercial airline and is a hub for road and rail transportation.
September 24,2007
page 9 of 31
PHYSIOGRAPHY (cont’d)
7.3 Water and Physiography
Water for all phases of the exploration and development program would be available from
watercourses which maintain water during most of the year, or from wells that may be developed on
the Property.
Physiographically, the Property is located in the dorsal portion of the Western Sierra Madre
Mountain range with elevation greater than 2220 meters above sea level. It is dissected by deep
canyons of more than 300 metres in depth. The vegetation in the top of the canyon is manly forests
(pines and cactaceous) where the lower part is dominated by tropical flora.
7.4 Potential Areas for Tailings Disposal and Plant Sites
There are adequate sites on and/or peripheral to the property for potential tailings storage areas and
waste disposal areas.
8.0 HISTORY AND PREVIOUS WORK
High-grade gold-silver veins in the San Dimas district were discovered around 1757 (Dahigren,
1882). The district contains at least 80 known veins, developed within four major fault blocks. An
estimated 9.5 million ounces of gold and 750 million ounces of silver have been produced from the
district (Luismin, 1991). Luismin’s San Dimas 2006 production was 208,400 ounces of gold and
8,931,700 ounces silver (www.goldcorp.com).
The history and previous work data for Cobriza proper are sparse with rare reference, if any, to
production information. Two reports, the first one compiled by the former property owner, Mr. Juan
Sierra for promotional purposes from documents generated by his uncle and the second one an
unpublished report by M. Legerwood for Mackay and Schnellmann Ltd. written for the Sierra family
in 1976, contain a mixture of verifiable mining and geologic data and speculative or promotional
language that must be heavily discounted given the conflicting sources (Megaw, 2004).
8.1 Prior Ownership
The original Cobriza claims were titled to Juan Sierra Oligaray and later purchased by Dr. Ricardo
Montano.
8.2 Work Completed by Previous Owners
Historic exploration of the Cobriza Vein consists of direct headings driven along the veins in several
places and a series of now-filled surface pits dug into the vein outcrops and direct headings along the
various veins outboard from the stoped areas. These headings include several levels and cross-cuts
driven through the veins in the Cobriza Mine. A decline has been driven within the vein beneath the
principal old workings for some 35 metres to demonstrate the down-dip continuation of the vein.
Other workings on the property include the Leona adits, and the Mina Grande workings (Megaw,
2004).
8.3. Production History.
Production records for the Cobriza mine, if any, are unavailable.
September 24,2007
page 10 of 31
8.0 HISTORY AND PREVIOUS WORK (cont’d)
8.4 Historical Resource Estimates
There are not any historical estimates of resources on the Cobriza property that comply with CIM
defined resources and reserves.
8.5. History of Exploration on the Property by Hellix Ventures Inc.
There has been no exploration work completed by Hellix Ventures Inc. on the Property.
9.0 GEOLOGICAL SETTING
9.1 Regional Geological Setting
The San Dimas mineral zones occur in the central part of the Sierra Madre Occidental volcanic pile
which contains rocks reflecting two separate periods of magmatism which were active between 10045 million years ago and 32-23 million years ago. The veins are contained within rhyolitic, andesitic
and granodioritic rocks of the older magmatic episode.
Regionally, the geological setting at San Dimas shows two major volcanic successions and a number
of intrusive events. The Eocene aged Lower Volcanic Group (LVG) is predominantly composed of
andesitic and rhyolitic flows and tuffs, and is intruded by a number of bodies including the dominant
Piaxtla Granite (part of the Sinaloa composite batholith). The Tertiary aged Upper Volcanic Group
(UVG) is composed of a lower andesitic horizon capped by rhyolitic ash flows and tuffs, and is
separated from the LVG by an erosional and depositional unconformity. Subsequent rhyolitic and
basic dykes intrude both the LVG and UVG.
9.2 San Dimas Veins
The San Dimas quartz veins occur within an area of over 15 by 20 km within each of the four major
fault blocks. Mineralization and alteration affect the entire Lower Volcanic Complex with the best
mineralization occurring in the top 100 m of the Portal Rhyolite and the lower 500 m of the
Productive Andesite.
Mineralization is hosted primarily in the east-west extensional faults, but is also present in northnorthwest trending faults, including those that break the district into the four major blocks.
Locally, ore is contained in over 120 gold/silver epithermal veins characterized by low sulphidation
and adularia-sericitic alteration, and formed prior to deposition of the UVG. Veins pinch and swell
and commonly exhibit bifurcation, horse-tailing and cymoidal structures. The veins vary from a
fraction of a centimetre in width to over 15 metres, but average 2.0 metres. They have been followed
underground from a few metres in strike-length to more than 2 kilometres (Goldcorp).
9.3 San Dimas Structures
Structurally, the San Dimas district lies within an area of complex normal faulting along the western
edge of the Sierra Madre Occidental. Compressive forces first formed predominantly east-west and
north-northeast tension gashes that were later cut by transgressive northnorthwest striking slip
faults. The strike-slip movements caused the development of secondary north-northeast faults, with
right lateral displacement (Goldcorp).
September 24,2007
page 11 of 31
9.0 GEOLOGICAL SETTING (cont’d)
9.3 San Dimas Structures (cont’d)
Structurally, the San Dimas district lies within an area of complex normal faulting along the western
edge of the Sierra Madre Occidental. Compressive forces first formed predominantly east-west and
north-northeast tension gashes that were later cut by transgressive northnorthwest striking slip
faults. The strike-slip movements caused the development of secondary north-northeast faults, with
right lateral displacement (Goldcorp).
Latest post-mineral movement on these faults has broken the district up into four major NNW
elongate horst and graben fault blocks within which district mineralization occurs. Several contain
mineralization attesting to a pre-mineral history as well. The district is also cut by numerous steeplydipping east-west to N70E trending extensional faults that host the principal veins.
Latest post-mineral movement on these faults has broken the district up into four major NNW
elongate horst and graben fault blocks within which district mineralization occurs. Several contain
mineralization attesting to a pre-mineral history as well. The district is also cut by numerous steeplydipping east-wests to N70E trending extensional faults that host the principal veins.
Photo 2. Surface Exposure of San Dimas Veins
September 24,2007
page 12 of 31
9.3 San Dimas Structures (cont’d)
At least 80 of these have been recognized. These show complex geometry and extensive detailed
study of their offsets have been made to determine which fault segments are most favorable to
mineralization. They commonly show dip reversals from south to north and at least some
mineralization are associated with these dip reversals.
Post-mineral faulting is extensive through the district, reactivating the NNW-trending structures as
well as activating thousands of minor northeast and northwest faults. Veins throughout the district
are cut off and offset one to 15 metres by these structures every two to 20 metres.
Figure 4. Cobriza Area Geology
9.4 Property and Local Geology
9.4.1 Local Geology
The local geology is constituted by two volcanic sequences (Lower and Upper) and both have been
dated from the Eocene - Oligocene. The lower package is constituted by andesitic tuffs and flows and
in lesser proportion dacites and rhyolites. This sequence has been tilted, locally folded and deeply
eroded.
The “Productive Andesite” and the “Rhyolite Portal” host the main veins, however, in lesser
proportion veins are hosted by several intrusives by the “Andesite Camichin” and Las Palmas
Formation.
September 24,2007
page 13 of 31
9.4 Property and Local Geology (cont’d)
9.4.1 Local Geology (cont’d)
The Upper Volcanic sequence is formed by pyroclastic-rhyolitic welded flows welded with
andesites, dacites, and expelled basalts through volcanic calderas. This sequence appears commonly
in flat terrains and makes it the highest plateau. This area presents deep excavated canyons within a
volcanic sequence with more than 1,500 meters thick.
Three plutonic events have been identified in the area. The emplacement of the Piaxtla Batholith
(Early Tertiary) preceded by the intrusions of the Candelaria and Arana stocks. This emplacement
and the rhyolitic, aplytic, and quartz monzonitic dikes are dated to be from the Middle Eocene. A
large proportion of the Au – Ag vein system within the District of San Dimas have been classified as
epithermal predominating massive quartz filling the vein system and presenting silicification on the
host rock, as well as, presenting halos of propylitic alteration.
9.4.2 Cobriza Structures
The structure is found inside a small stratigraphic window that opened during the Upper Volcanic
sequence which expose the Lower Volcanic sequence.
Approximately 3 km NW of the Cobriza Mine the Piaxtla Batholith that intrudes the Lower Volcanic
sequence is exposed. The dikes that appear in the area have a NW30° course and dipping 85°SW.
The rocks from the Lower Volcanic sequence are cut abruptly by N70°-90 E° striking structures and
with dipping N-S. These vein-faults are cut by variable dipping NNE, NNW and N –S post mineral
faults that offset the veins. Some have minor mineralization and dikes show 2 to 20 cm strike-slip
movement.
9.4.3 Cobriza Veins
There are three principal N70E trending veins that dip both north and south on the Property. Like
Tayoltita, mineralization is often associated with these dip reversals. The principal veins are all offset
by a series of N15-30W (60S w/50N slicks) step faults that shift the vein segments. In some stopes
four metre wide sections of veins are bounded by these cross faults, suggesting pre-mineral activity
as well. They also break down into stringer zones along strike in some sections.
Veins 1 and 2 are well defined in the Cobriza Mine proper, but post-mineral faulting makes tracing
them on the surface uncertain. Vein 3 is known from outcrops and prospects to the west, but it is
unclear if it is actually a separate vein or a fault duplication of Vein 2. Vein 2 is readily traceable for
700 metres to the east of the mine through prospects and old mines. Vein 1, about 15 metres north of
Vein 2, is less easily traced for over 500 metres to the east through outcrops and prospects (Megaw,
2004).
Two veins, spaced about 20 metres apart are well exposed to the west through Mina Grande and are
probably the western extensions of Veins 1 and 2 although poor outcrop and post mineral offsets
make this uncertain. The 400 metre long vein at Aguacate is probably Vein 1 or 2. In short, as is seen
in throughout the San Dimas district, structure is extremely complicated; making projections without
careful planning difficult (Megaw, 2004).
September 24,2007
page 14 of 31
10.0 DEPOSIT TYPES
Regionally, the Sierra Madre Occidental is host to a multitude of Low-Sulfidation epithermal goldsilver vein systems in the style modeled by Buchanan (1981) and Albinson and others (2001). These
veins tend to have restricted vertical ranges for precious metals deposition, and grade downward into
base-metal dominated systems. Most are overwhelmingly dominated by massive vein quartz fillings
and wall-rock silicification with laterally extensive propylitic alteration halos. The region also hosts
High-Sulfidation Gold deposits such as El Sauzal, Mulatos, and Metates (Megaw, 2004).
Figure 5. Section of the Cobriza Mine
11.0 MINERALIZATION
11.1 District
In the district, mineralization is typical of epithermal vein structures with banded and drusy textures.
Three major stages of veining have been recognized, each containing variable amounts of
mineralization. The second stage produced the bulk of the ore deposits, itself having three sub-stages
characterized by distinct mineral assemblages, quartz-chlorite-adularia, quartz-rhodonite, and quartzcalcite. Sulphide minerals include pyrite, sphalerite, chalcopyrite and galena as well as lesser
amounts of argentite, polybasite, stromeyerite, native silver and lectrum (www.goldcorp.com).
September 24,2007
page 15 of 31
11.0 MINERALIZATION (cont’d)
11.1 District (cont’d)
The mineral deposits are typically found in what is referred to as the ‘Favourable Zone’, analogous
with the boiling zones. Strike length of these Favourable Zones can exceed 2,000 metres and dip
length can exceed 300 metres. Exploration generally relies on a combination of structural geology,
geochemistry, and fluid inclusion studies to identify the Favourable Zone. Historical reconciliation
has shown that, once the Favourable Zone is defined, over 30% of the vein material contained within
the zone will be classified as ore (www.goldcorp.com).
11.2 Cobriza Property
At the Cobriza property, vein fillings are dominated by quartz and calcite with adularia, rhodonite,
hedenbergite, and chlorite. Minerals include acanthite, tetrahedrite, polibasite, galena, sphalerite,
chalcopyrite, and pyrite. Malachite, azurite, and chrysocolla stain oxidized vein surfaces.
Channel samples taken by a former owner report values up to 25 gr./ton Au with 1500 gr/ton of Ag
and 1.5% of Cu. These reports are not reliable due to the lack of quality the laboratory used to assess
each sample. A sample sent to a different laboratory reported values of 1 gr/ton of Au, 3600 gr/ton of
Ag and 1% of Pb, Zn and Cu, considering an acceptable average of 1-4 gr/ton Au and 500-1000
gr./ton of Ag (Megaw, 2004).
Photo 3. Veta Falla (Vein 3)
September 24,2007
page 16 of 31
11.0 MINERALIZATION (cont’d)
11.2 Cobriza Property (cont’d)
The main alterations around the veins consist of silicification extending up to 50 cm from the vein
margin, followed by a zone of carbonate leaching which creates a cellular vuggy zone locally
extending for three metres from the vein. Propylitic alteration of the andesite is pervasive beyond that
to the limits of exposure. Oxidation and leaching of the surface outcrops and upper vein exposures
extend up to 50 metres in depth (Megaw, 2004).
12.0 EXPLORATION
There has not been any exploration performed on the Property by the Hellix Ventures Inc. other than
the sampling performed by the author in the 2007 Property examination.
13.0 DRILLING
There has not been any drilling on the Cobriza property known to the author.
14.0 SAMPLING METHOD AND APPROACH
Of all the samples reported taken from the Property prior to the author’s 2007 sampling, the sampling
method of only the three samples taken by Dr Megaw adjacent to stopes of Cobriza mine is reported
as: Samples were selected chip traverses or grab samples of mineralized appearing rock. Samples
were reportedly taken, handled, and bagged directly by the author and kept under lock and key until
submission to American Analytical Laboratories in Tucson, Arizona (Megaw, 2004).
14.1 Author’s 2007 Sampling
As the main Cobriza vein workings were inaccessible, the author’s sampling was restricted to the
sampling of the accessible veins exposed in workings from 50 metres below the main Cobriza
workings and the surficially exposed veins. A total of seven samples were taken. The sample results
and the particulars of the samples are reported below and in the attached Sample Assay Sheet of
Appendix A.
14.1.1 Sampling Method
Samples taken by the author from the Cobriza property were predominantly random chip samples
across the width of the vein and/or indicated vein. The samples sites were chosen for favorable access
to the vein/structure and were not selected for visual mineral value.
The vein surface was usually heavily oxidized and/or covered in grime, which made the selection of
sample locations more random.
September 24,2007
page 17 of 31
TABLE 1
Sample Coordinates
SAMPLE
NO.
LOCATION
LUZ (Vein 1)
516601
Level 6: 200 m
from portal
516602
Level 6: 120 m
from portal
516603
Level 6: Dump
grabs
PORTAL
UTM*
Northing
UTM*
Easting
ELEVATION
masl
2,661,452
409,773
1,059
2,661,270
409,705
1,104
GAVILANO
(Vein 2)
516604
Road outcrop
VETA FALLA
PORTAL
(Vein 3)
516605
Approx
Approx
Approx 50m lower
15m south of 60m west than Gavilano
Gavilano
of
Gavilano
30 m from portal
CREEK VEIN PORTAL
(Vein 4)
516606
Vein at portal
516607
Vein at portal
(no GPS signal) (no
GPS Approx 50m lower
signal)
than Veta Falla
* NAD 27 Mexico
September 24,2007
page 18 of 31
14.0 SAMPLING METHOD AND APPROACH (cont’d)
14.1.2 Sample Reliability
The sampling was performed at locations selected by the author and was performed by experienced
Mexican explorationists under the supervision and guidance of the author. The author considers the
samples reliable.
TABLE 2
Sample Description
SAMPLE NO.
SAMPLE DESCRIPTION
516601
Heavily brecciated zone with sub-rounded quartz frags
516602
Heavily brecciated zone with sub-rounded quartz frags:
light malachite stain
516603
Vesicular quartz with very fine-grained gray tetrahedrite
(?)
516604
Silicified breccia zone with sub-angular altered host rock
frags
516605
Silicified breccia zone; heavily calcium stained &
oxidized
516606
Quartz: Light oxidation on surface and heavier in pockets
516607
Quartz: Heavy oxidation in pockets.
TABLE 3
Sample Particulars
Sample
No
516601
516602
516603
Width
metres
1.0
2.6
516604
516605
516606
516607
0.8
1.6
1.2
1.5
Type
chip
chip
Selected
grabs; dump
chip
chip
chip
chip
Cu
ppm
2.5
744.9
>10,000
Pb
ppm
9.3
1150.3
>10,000
Zn
ppm
57.0
5890.0
.>10,000
Ag
ppm
<0.1
>100
>100
Au
ppb
28.9
253.3
2366.6
26.6
86.8
48.2
76.9
26.8
222.5
190.7
222.9
35
256.0
145.0
43.0
0.4
6.0
8.1
29.0
6.2
49.6
153.1
166.7
September 24,2007
page 19 of 31
15.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
The seven samples taken from the Cobriza property were personally submitted to Acme Analytical
Laboratories (“Acme”) at Vancouver BC Canada on July 16, 2007.
In the assay result sheet submitted (Appendix A Acme file # A704908), it is reported sample
preparation and analysis was: Group IDX – 0.50 gm sample leached with 3 ml 2-2-2 HCl-NNO3H2O at 95 deg. for one hour, diluted to 10 ml, analysed by ICP-MS.
For sample security, the seven samples were in the author’s possession from the time of sampling to
the time of submission to Acme Analytical Laboratories at Vancouver BC Canada.
16.0 DATA VERIFICATION
16.1 Previous Sampling
In 2004 three reconnaissance samples were taken from the Cobriza vein workings by Dr. Megaw
who reports (Megaw, 2004) that these were from the walls of abandoned stopes and probably do not
reflect the grades actually produced from these stopes nor are they necessarily reliable indicators of
what lies beyond them deeper in the rock.
Part of the verification of the mineral values has been reported by Dr Megaw (2004) in that the assay
results of samples taken by him from the Cobriza property were within a comfortable range of
variation considering the moderately erratic nature of the mineralization.
The sample description and assays of the three samples are reported (Megaw, 2004) as follows:
TAY-1: Chip sample across 1m wide portion of Cobriza vein below 59 cm wide high-grade zone.
Contains chalcopyrite, tetrahedrite, and acanthite in quartz and calcite matrix.
Au: 276 g/T; Ag: 100.8 g/T; Pb: 0.5%; Zn: 0.3%; Cu: 0.3%; As: <2ppm; Sb: 6 ppm; Hg:
179 ppm.
TAY-2: Selected high-grade sample taken to determine Au and Ag values. High-grade zones range
from 3-30 cm across and are completely faulted in this area.
Au: 1084 g/T; Ag: 3636 g/T; Pb: 1.09%; Zn: 0.83%; Cu: 0.85%; As: 31ppm; Sb: 422 ppm;
Hg: 54 ppm.
TAY-3: Chip sample across face across footwall of Cobriza vein taken to determine if there are
disseminations around main portion of the vein. Sample represents 1m zone consisting of silicified
andesite cut by quartz stringers. HW of sample is 30cm wide brecciated and sheared high-grade w/
sulfides (not included); footwall is fault that cuts off vein.
Au: 144 g/T; Ag: 106.8 g/T; Pb: 0.10%; Zn: 0.14%; Cu: 481ppm; As: <2ppm; Sb: 9ppm; Hg:
208ppm.
As the exact location of the three Megaw sample sites was not reported, the author could not verify
the results.
September 24,2007
page 20 of 31
16.0 DATA VERIFICATION (cont’d)
16.1 Previous Sampling (cont’d)
In 2006, personnel of SGM performed a sampling program of the Cobriza Mine vein. The
qualification of the samplers or the sample results could not be verified thus the results of the
sampling program are not included as part of this report.
16.2 Author’s Sampling
The author’s 2007 Cobriza property sample results indicate the presence of increased mineral values
in the selected grab sample of quartz vein material taken from the Cobriza Mine level 6 dump. Two
random sample locations taken from the Cobriza Mine level 6 (Luz) returned minimal mineral values
with base metal values relatively higher than the gold and silver values.
Photo 4 Tayoltita Mill Tailings Pond (centre)
(Picture taken from the Cobriza Property)
September 24,2007
page 21 of 31
17.0 ADJACENT PROPERTIES
The chief active mines of the San Dimas District lie approximately six km to the north of Cobriza.
Geochemical zoning studies (Motilla and others, 1990) clearly indicate that Cobriza is part of the
overall San Dimas District. Similar epithermal Au-Ag vein districts abut the San Dimas District or lie
along the same regional trend that hosts San Dimas. Three Districts include Gavilanes 15 km to the
east and Ventanas 55 km to the south.
The following information is from the Goldcorp Inc website (www.goldcorp.com)
In the Tayoltita region Luismin owns and operates two gold and
silver mines, and holds numerous exploration projects
throughout Mexico. The San Dimas gold-silver deposit is one
of the most significant precious metal deposits in Mexico in a
large and productive mining district.
The San Dimas mines are underground operations using
primarily mechanized cut-and-fill mining methods. After
milling, cyanidation, precipitation and smelting, dore bars are
poured and then transported to the United States for
refining. In 2005 San Dimas produced 132,000 ounces of gold
and more than 9 million ounces of silver.
Mexico
LUISMIN OPERATING STATISTICS
2004
(actual)
Luismin (100%)
2005
(actual)
2006
(actual)
Ore Milled
790,100
814,200
1,085,700
Gold Grade
5.58
5.94
6.34
Silver Grade
297
343
328
Gold Recovery
95
95
94
Silver Recovery
90
89
89
Production Gold Oz
132,500
145,300
208,400
Production Silver Oz
6,665,500
6,797,300
8,931,700
Total Cash Costs*
97
119
131
The Tayoltita area includes the oldest operating mine in the San Dimas area. The main access is a 4.4
kilometre tunnel from a portal approximately 400 metres northeast of the Tayoltita mill.
September 24,2007
page 22 of 31
17.0 ADJACENT PROPERTIES (cont’d)
The mining method employs mechanized cut-and-fill mining on vein mineralization using waste rock
as backfill. The veins vary from 1 to 3 metres in width and generally dip at 75-80 degrees.
Production drilling is largely completed with jackleg drills depending on the vein thickness. Ore is
hauled from the stoping areas using LHD equipment, then by rail haulage to surface through the
main access tunnel. Tayoltita has the lowest overall operating costs and cut-off grade in the area
mainly due to the efficient ore transport system (www.goldcorp.com).
Photo 5. Luismin Mine Portals at Tayoltita
The development of the San Luis tunnel to connect the San Antonio area to the Tayoltita area has
enabled the development of several additional veins of variable width dipping at 75 degrees. This
area is currently being developed as an important new source of ore for Tayoltita.
Milling operations are carried out at Tayoltita. The Tayoltita mill processes ore from throughout the
district and has a current throughput capacity of 4,000 tonnes per day. The mill facility is a
conventional operation that employs cyanidation and zinc precipitation for the recovery of gold and
silver (www.goldcorp.com).
September 24,2007
page 23 of 31
17.0 ADJACENT PROPERTIES (cont’d)
The author has been unable to verify the information on the Tayoltita Goldcorp/Luisman property
and the information on that property presented herein is not necessarily indicative of the
mineralization on the Cobriza property.
18.0 MINERAL PROCESSING AND METALLURGICAL TESTING
There were no mineral processing or metallurgical studies completed on the minerals from the
Property known to the author, however, Oligaray (1943) reports that:
“It appears that the ore is readily treatable by simple flotation methods, and ore has
already been treated at a small custom plant at El Duraznito near Las Cebollas; recovery
is said to be of the order of 80%, to a polymetallic concentrate; but at 100 tpd the amount
of concentrate, including some moisture, would be in the order of 15 tonnes/day, more
than the existing track can accommodate.”
The details of the Oligary testing, the analytical procedures, and the representative of the samples
tested has not been reported and could not be verified by the author.
19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
As of the date of this report, the Company has not calculated any Resource Estimates on any targets
on the Property.
20.0 OTHER RELEVANT DATA AND INFORMATION
There is no other relevant data or information to report on the Cobriza property.
21.0 INTERPRETATION AND CONCLUSIONS
The objective of the author’s Cobriza property examination was met in that it was determined that
the Cobriza property contains epithermal veins that may host potentially economic mineral zones.
The sample results revealed erratic mineral values disclosed mainly by author’s sample results from
the Cobriza Mine (Luz) level 6 dump where selected samples of vein material returned significantly
higher mineral values than the chip samples from random locations of veins exposed in the Cobriza
Mine (Luz) level 6 and from other sampled veins on the Property. The Megaw (2004) sample results
from the walls of abandoned stopes returned significant gold and silver assays; however, erratic
mineralization was also reported. The exact locations of the Megaw sample was not reported, thus
the results could not be confirmed.
The author’s sampling is considered reliable; however, the results are not an established indication of
the nature of mineralization of all the Cobriza veins.
Based on the Cobriza vein sample results reported by Megaw (2004) and the author’s samples to
date, the higher base metal values indicate that the veins are exposed at a level below the gold and/or
silver zones of an epithermal system.
September 24,2007
page 24 of 31
21.0 INTERPRETATION AND CONCLUSIONS (cont’d)
However, this would not discount the potential for increased precious metal values on the Property as
the veins may have developed in various stages resulting in the gold and/or zones developed at
varying levels in unrelated veins. The topography of the Property and the veins exposed in the
Cobriza Mine levels are suitable to vein sample analysis in determining the mineral zoning of the
epithermal system.
Additional sampling of the veins along strike and at varying elevations may provide adequate
information to the location of potentially economic gold and/or silver zones comparable to the
productive mineral zones in the area.
Fluid inclusion analysis from the Cobriza veins could also provide valuable information to the
position of the Cobriza mineralization relative to the high-grade gold and/or silver zones in the area.
MMI soil surveys may also detect unexposed mineralized veins which would be explored for
economic mineral zones.
22.0 RECOMMENDATIONS
It is recommended that a two phased (Phase 1A & 1B) exploration and development program be
carried out on the Property. Phase 1A would include a compilation of all data and the digitizing of
maps for ground control by survey, followed by MMI soil surveys, followed by IP and resistivity
surveys over delineated geochemical anomalous zones, followed by geological mapping and
sampling over delineated prime anomalous zones. In conjunction with the above, reconnaissance
geological mapping and sampling would also be completed over the property in addition to detailed
mapping and sampling of underground workings, surface pits and trenches. Former exploratory
workings should be cleaned out to facilitate geological mapping and sampling.
Phase 1B of the program would be comprised predominantly of surface and underground diamond
drilling to test the Cobriza vein extensions along strike and to depth in addition to testing for parallel
or offset mineralized vein structures. Diamond drilling would be completed to test correlative MMI
geochemical, IP, and resistivity anomalies.
September 24,2007
page 25 of 31
22.0 RECOMMENDATIONS (cont’d)
22.1 Estimated cost of the Phase 1A recommended program
Compilation, digitizing & base maps ------------------------------------
$
15,000.00
Prospecting, geological mapping & sampling:
Geologist & helper; 30 days --------------------------------------
19,500.00
Analysis: 200 samples @ $30. -----------------------------------
6,000.00
Cleaning out old workings -------------------------------------------------
5,000.00
MMI soil survey: (contracted)
1,750 samples:35 days @ $1,600/day -----------------
56,000.00
Soil analysis: 1,750 samples @ $35.00 -------------------------
61,250.00
Data reduction and reporting -------------------------------------
10,000.00
Shipping ------------------------------------------------------------
2,500.00
IP & resistivity surveys 12 km: (contracted) allow --------------------
75,000.00
Support costs (for non contracted crew) --------------------------------
6,600.00
Vehicle rental ---------------------------------------------------------------
3,000.00
Travel & accommodation --------------------------------------------------
12,500.00
Engineering, Supervision & Reporting ----------------------------------
30,000.00
Contingencies (including fluid inclusion studies) -----------------------
30,000.00
Estimated Cost Phase IA
$
332,350.00
_________
September 24,2007
page 26 of 31
22.0 RECOMMENDATIONS (cont’d)
22.2 Estimated cost of the Phase 1B recommended program
Diamond Drilling: (contracted) 2,000 metres @ $150. ----------------Geologist: drill site; 30 days @ $500.
$ 300,000.00
-----------------------------------
15,000.00
Underground drilling preparation -----------------------------------------
5,000.00
Surface drilling preparation ------------------------------------------------
10,000.00
Assays & field expenses: ---------------------------------------------------
25,000.00
Engineering & Supervision -------------------------------------------------
40,000.00
Compilation & reporting: ---------------------------------------------------
15,000.00
Contingencies -----------------------------------------------------------------
35,000.00
Estimated cost: Phase IB
$ 445,000.00
_________
Phase 1A & 1B estimated cost
$777,350.00
=========
It is the author’s opinions that the character of the Property is of sufficient merit to justify the
recommended exploration program.
Respectfully submitted
September 24,2007
page 27 of 31
23.0 REFERENCES
Buchanan, L.J. – 1981: Precious metal deposits associated with volcanic environments in the
Southwest – in Dickenson, W.R. and Payne, W.D., eds. Arizona Geological Society
Digest.
Clarke, M. and Titley, S.R., - 1988: Hydrothermal evolution in the formation of silver-gold veins
in the Tayoltita Mine, San Dimas District. Economic Geology, v. 83, no 8. pp 18301840.
Dahlgren, C.V. – 1883: The Historic Mines of Mexico. New York, 220 p.
Escalona, J.L. and Ortoga, L.A.T. – 2006: Informe del Programa de Exploration sobre La Veta
“La Cobriza” Minitos. Servicio Geologico Mexicano (SGM).
Goldcorp Inc. – www.goldcorp.com.
Oligaray, L.J. – 1943: Estudio General Cobriza, March 1943.
Ledgerwood, E. undated: Report on Certain Mineral Properties in Mexico. Mackay Schnellman
Ltd. (appended report to Oligary, 1943).
Luismin, - 1991: The San Dimas Mining District. Summary of Operations of Chase Bank.
Martinez, R.M. – 2005: Proyecto “Las Minitas” por Minera Cascabel S.A. de C.V.
Megaw, P.K.M. – 2004: Qualifying Report for the Cobriza Property for Dr. Richard Montano.
January 2004.
Motilla, J.-L., and Others – 1990: Zonamiento en el Distrito Minero de San Dimas District,
Durango, Mexico. Private Report to Luismin, 45pp.
Rivera, R.- 2003: Geology and Exploration in Luismin’s Tayoltita Division. San Dimas District,
Durango, Mexico. Oral presentation given at Cordilleran Roundup, Vancouver,
B.C. Canada. January 2003.
Sierra, J.O. – undated. Mina La Cobriza. Municipio de San Dimas. Durango, Mexico.
Unpublished Private Report.
Smith, D.M. Jr., and Hail, D.K. – Geology of the Tayoltita, Durango, Mexico. American Institute
of Mining Engineers Preprint 74-1-308, 48pp.
Smith, D.M. Jr., - 1979: The significance of silver-gold ratios at Tayoltita Mine, Durango, Mexico.
American Institute of Mining Engineers. Transactions, p.266, p1834-1838.
Sookochoff, L. – 2005: Technical Report and Proposed Exploration for the La Dura Property,
Tamazula Municipality, Durango State, Mexico for Abington Ventures Inc.
September 24,2007
page 28 of 31
24.0 DECLARATION OF CERTIFICATE OF AUTHOR LAURENCE SOOKOCHOFF
I, Laurence Sookochoff, PEng. do hereby certify that I am a Consulting Geologist of Sookochoff
Consultants Inc. with a business address at 401-850 West Hastings Street, Vancouver, BC Canada
V6C 1E1.
1. I am responsible for the preparation of the Report titled “Technical Report and Proposed
Exploration on the Cobriza Property for Hellix Ventures Inc. dated September 24, 2007 (the
“Technical Report”) relating to the Cobriza Property (the “Property”).
2. I am a member in good standing of the Association of Professional Engineers and Geoscientists
of British Columbia.
3. I have worked as a geologist for a total of 41 years since my graduation from the University of
British Columbia located in British Columbia, Canada.
5. I performed a personal examination of the Cobriza property on July 11-12, 2007.
6. Applying the tests set out in Section 1.4 of National Instrument 43-101, I am an independent
consultant to Hellix Ventures Inc.
7. I have had no previous involvement with the Cobriza property which is the subject of the
Technical Report.
8.
I have read National Instrument 43-101, and the Technical Report has been prepared in
compliance with that instrument.
9. As of the date of this Certificate, to the best of my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
September 24,2007
page 29 of 31
Appendix A
ASSAY CERTIFICATE
September 24,2007
page 30 of 31
Appendix B
SGM PLAN MAP of the COBRIZA PROPERTY:
GEOLOGY and WORKINGS
September 24,2007
page 31 of 31

Technical Report- 43-101 PDF

Transcription

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