“We picked up the Las Minas project last year. The area has a long mining history—it goes back to the Aztecs—and there was a lot of activity there between 1870 and 1910. There are approximately 20 mines operating in the area. Geologically it’s a skarn zone; we have a large granodiorite intrusive coming up into limestone cap rock, and we have this skarn mineralization at the contact.
“Before, the focus was on the high grade portion of that skarn mineralization, and they were mining very high grade material there. Up to 20 g/t and 30 g/t on the gold, and 20% on the copper. And they were direct shipping that material out of there. The Mexican government did geological work in there and their estimate of the skarn zone itself was around 80 million tonnes. So we’re looking at the bulk tonnage potential.
“We just started the drill program and we put out a press release with some initial results. We drilled in two locations. We drilled at Los Boquillas and we had some very good sample results there, and we also drilled at El Dorado. The Los Boquillas site is about 300 metres to the north of the El Dorado site, and our geologist believes that mineralization is continuous between the two sites and even continues south of there to Nopaltapec. So we’ve got some news from Los Boquillas, we’ve moved over to El Dorado which has some very interesting results—higher on the copper, under a gram of the gold and some good numbers on the silver. So what we’re seeing is that that zone is quite large. We’ve extended it at least 180 metres beyond the old workings. It’s some very strong structure in the mineralization and we think that it could be a very large structure.
“In 2011 we have some more drilling to do at El Dorado. We’re going to drill at another site which is about two kilometres away, Cinco Senores, and at Las Manillas. That will conclude our first phase program of about 2,500 metres. Then we’re looking at raising some money and doing a much larger drill program.
“Source Exploration is basically an exploration company. My background is in operations, I’ve built and operated mines. So we do have that level of expertise, but it’s not what the company is focussed on. Our primary business is to conduct explorations, take properties to a given level, then look at the sale of those properties.
“I like Las Minas. I went to look at the property the first time and I was quite impressed with the geology that was there, and the mineralization that was exposed. The sample results on the drilling have confirmed that. I was quite impressed with the extent of the mineralization beyond the workings. I think we’ll continue to see some nice numbers come out of Las Minas as we go forward. There are a number of targets there, we’ve only looked at two so far. There are several other targets that we need to look at.”
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