Xali Gold Corp., a Canada-based exploration-stage company, reports that it has submitted exploration permit applications for the El Dorado Gold-Silver Project, situated in Nayarit State, Mexico.
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Depending on the new 3D model that helped determine the high-grade mineralization in multiple parallel veins at a spacing sufficiently close to access several veins, a drill program involving at least 2000 m has been scheduled for Q4 2021/Q1 2022.
Drilling and underground sampling have been scheduled to assess possible lateral extensions to the high-grade zones and to better define plunging mineralization shoots.
Furthermore, the permit application seeks permission to ship a bulk sample from the historical Hundido Mine. It is expected that the permit approval can be obtained in 2 to 4 months. Mineralized material from the Hundido Mine is scheduled to be shipped to and processed in the SDA plant in the vicinity under acquisition from Magellan Acquisitions.
The El Dorado Property
The location of the El Dorado Gold-Silver Project is in the Pacific Coastal Plain, State of Nayarit, which is 50 km to the south of the SDA Plant. The Xali Gold has an option to purchase from Magellan Acquisition Corp., 70 km to the north-northwest of Tepic, the state capital, and 180 km to the southeast of Mazatlan, Sinaloa. The project features great road and rail infrastructure.
The mines of El Hundido and El Dorado are situated within The El Dorado vein trend, stretching across a strike length of 3.5 km with widths more than tens of meters, consisting of several vein breccias and parallel veins. Besides, argillic alteration and high-level silicification on the surface denote depth potential to the mineralizing system.
Because of this, exploring the exterior of the area and Prospero Silver Corp.’s drilling is believed to be outstanding.
The main structure's north-easterly striking and east-west striking splits show structural complexity and potential for multi-meter wide valuable metal mineralization. Anomalous base metal assays (100s to 1000s of ppm copper, zinc, and lead) are omnipresent, as proven by the general occurrence of visible galena, chalcopyrite, and sphalerite in outcrop and dumps.
The El Dorado vein system hosts a history of small-scale mining from two veins in the El Hundido and El Dorado mines. However, four veins with parallel high-grade zones have been delineated in the new Leapfrog model. Besides, various vein targets have been found along with the trend for follow-up exploration.
Prospero between 2010 and 2011 explored the El Dorado property. Their drilling sectioned multiple steeply-dipping silicified mineralized zones stretching from near-surface to the 180-m drilled depth and across a strike length of 440 m.
Prospero sectioned grades varying from 3 to 40 gpt gold and 57 to 500 gpt silver over true widths ranging from 0.52 to 11.2 m.
Listed below are the considerable outcomes obtained in drill hole DOR-10-11 as reported by Prospero on December 10th, 2010:
- 16.17 m grading 4.03 g/t gold, 204 g/t silver, 4.0% lead, and 1.75% zinc
- 2.32 m grading 6.04 g/t gold and 140 g/t silver
In the El Hundido historical mine area, mineralization was stated to vary from 1.45 to 11.22 m (true widths) and given economics at the time (1900 to 1983), grades mined are presumed to have surpassed 10 gpt gold. Drill intersections next to the edges of the mined regions display grades of 8.6 over 2.3 m, 13.9 gpt gold over 1.45 m, and 49.8 gpt gold over 3m.
Terms of the Agreement
Recently, Xali Gold entered into a new Exploration and Production Agreement (EPA) with Ingenieros Mineros, S.A. de C.V. The EPA offers Xali Gold the right to explore and produce gold, silver, and other metals for the life of the mine.