San Marco Resources Inc. (TSX-V:SMN) has signed a two year option agreement with Argonaut Gold Inc. (TSX:AR) of Toronto, Ontario to acquire a 457 hectare concession that contains a number of established gold targets in the El Chunibas area of the Cuatro de Mayo District in northern Mexico. Under the terms of the agreement, San Marco can earn a 100% interest in this concession by paying Argonaut a total of $50,000 over two years ($10,000 within 90 days, $15,000 on the first anniversary and $25,000 on the second anniversary). Argonaut will retain a one percent (1%) NSR royalty on any future production.
“The El Chunibas area hosts a number of mineralized epithermal gold targets,” states Bob Willis, President and CEO of San Marco. “This acquisition enhances San Marco’s foothold in the Cuatro de Mayo District and adds a highly prospective, established, precious metal target to our growing suite of Cuatro de Mayo showings.”
San Marco understands the El Chunibas area was the subject of several exploration initiatives over the past several decades, including the drilling of a series of shallow Reverse Circulation holes in the mid-1980s by a predecessor company of Argonaut. Holes were drilled at -45 degrees to the east, angled across the shear zone. Significant oxide gold results from this pre-NI 43-101(i) near-surface drill program include:
-- 1.04 g/t gold over 42.6 metres including 1.25 g/t gold over 30.4 metres;
-- 1.0 g/t gold over 13.7 metres (which hole appears to have tested less
than 50% of the shear width).
Local small scale mining activity has been ongoing since at least the 1980s. According to historic reports reviewed by the Company(i), approximately 6,100 tonnes of mineralized material from three open pits was processed at a local Sonora State government-operated mill between 1984 and 1987, which material averaged approximately 4.0 g/t gold and 20 g/t silver.
Geologically, the El Chunibas area consists predominately of multi-phase felsic plutonic rocks intruding older (Jurassic) volcano-sedimentary sequences similar to exposures at the El Valle target, located 7 km to the southeast on the Company’s Cuatro de Mayo Property (see San Marco news releases dated September 29 and October 8, 2014 for El Valle exploration results to date). Precious metal mineralization at El Chunibas appears to be related to the same NNW-trending regional structure that hosts the El Valle target, and occurs in altered and locally oxidized or mixed oxide-sulfide-bearing shears in and adjacent to the intrusive rocks. Disseminated sulfides are noted in agglomerates in the eastern portion of the property.
About San Marco
San Marco Resources Inc. is a Canadian mineral exploration company with a portfolio of three promising properties in mining-friendly Mexico, including the recently-acquired Cuatro de Mayo Project in Sonora State, and a strategic project generation program focused on high-calibre, low-opportunity cost projects in the Cuatro de Mayo District. San Marco has a committed management team with extensive experience in Mexico and a proven track record of building shareholder value.
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