Galore Resources' Dos Santos project is a gold exploration project located in northern Zacatecas State, Mexico. The property covers a geologically attractive area in the Concepcion del Oro Mining District with the potential to host world-class gold-silver-lead-zinc mineral deposits. Galore has been working in this area since 2007 acquiring a 100% interest in 15,000 hectares (37,065 acres) of mineral claims and recently signed an option agreement to acquire an additional 5,000 hectares (12,355 acres) south and contiguous to the property. Galore's strategy is to find a significant gold-silver deposit that meets a major company's acquisition criteria.
From 2007 until 2010 the company worked primarily on known surface showings and drilled one geophysical target, resulting in intersections of mineralization. Based on this information the Company selected a contractor in 2014 to carry out a helicopter-borne gravity and magnetic survey over areas of favorable geology underlying approximately 10,000 hectares. Galore’s survey results are very encouraging. The survey outlined three primary targets with Peñasquito-like characteristics, and nine other targets, which may represent other mineralization styles. Geophysicist Jules Lajoie, PhD, P.Eng., who has worked with gravity data interpretation in Mexico and elsewhere, interpreted the survey data.
The Peñasquito Mine that is sited above is Mexico's largest gold mine and is located 35 km (22 miles) to the northwest of Galore’s project and operated by Goldcorp Inc. In 2009, Goldcorp purchased Canplats Resources, after they discovered the Camino Rojo goldsilver-lead-zinc deposit, for CD $308.5 million ($254 million US). The Camino Rojo borders Galore to the south. Galore shares the same host rock as the Peñasquito and Camino Rojo, and our project has three known gold occurrences.
Located in the historic mining region of northeastern part of the State of Zacatecas in north-central Mexico, 15 kilometers from the town of Conception Del Oro, Dos Santos is ideal situated to highway transportation and power.
• EL ALAMO: Galore has completed extensive trenching and sampling, shallow track drilling, and mapping at El Alamo with consistently significant gold assays (e.g., 2.22 g/t over 17.5 meters; 1.23 g/t over 3.05 meters). A 3,000-meter, diamond core drill program is ready to begin upon financing.
• SAN JOSE: The San Jose area is located at the East Margin of El Alamo Ridge and it shows a continuous gold anomaly along the northern portion of the Dos Santos. In 2009 Galore Resources drilled (13) reverse circulation holes (3,321 meters) into the San Jose Cretaceous limestone sequence and all but one hole shows significant lead, zinc, copper and mercury values, interspersed with occasional gold values.
• LOS GEMELOS: This area has had a history of artisanal gold mining since 1849. In 2012 Galore drilled 1,061 meters in 37 holes and conducted surface sampling with returned assays of up to 33.7 g/t gold over 0.05 meters. In 2014 the airborne gravity and magnetic survey revealed an 800-meter circular gravity low, which will be “drill tested” for breccia pipe related mineralization.
• LA PALMA: Soil geochemistry and geophysical (IP, magnetics) survey anomalies, in the La Palma target area from 2009, were tested by a 12-hole, 4,984-meter (16,351 feet) diamond drill program in the fall of 2010. Drilling intersected a variety of breccias, including breccias containing igneous rock fragments, which indicate a high energy, igneous intrusive event. High concentrations of silver, associated with lead-zinc mineralization, were intersected in two holes.
• SAN ONESIMO: Previous work on the San Onesimo property confirmed that the favorable host rocks the Company is exploring on Dos Santos underlie the San Onesimo claims. This is an early stage, underexplored property and a suitable target for applying Galore’s Dos Santos exploration model. The San Onesimo claims were covered by the 2014 Heli-Falcon gravity magnetic survey flown over the Dos Santos property.
In 2014 the majority of the claim package was characterized with a gravity and magnetic airborne geophysical survey consisting of 1,233 kilometers (771 miles) of flight line.