Bolivar Cu-Zn Skarn Deposit, Sw Chihuahua, Mexico - Introduction

The Bolivar Cu-Zn skarn deposit in the Piedras Verdes mining district of Chihuahua is one of many base and precious metal deposits in the north-northwest trending Sierra Madre Belt extending across the states of Chihuahua, Durango and Sonora in northwestern Mexico. The information presented here is drawn from two papers on the Bolivar property1,4 plus new information. Historical mining and exploration for polymetallic Cu-Zn-Pb-Ag-Au deposits in the Sierra Madre Belt dates to Spanish Colonial days. Access to the Bolivar Property (Figure 1) is by paved road (approximately 305 km southwest from Chihuahua) and approximately 80 km by all-season gravel roads to the villages of Cieneguita (population ~1,000) and Piedras Verdes (population ~500) adjacent to the property. [ ] The Bolivar property comprises an old Cu-Zn producer (the Bolivar Mine), exploration concessions adjacent to the Bolivar Mine, and a new camp at the mine that supports mining, exploration and maintenance. From 1980 to 2000, former operators extracted approximately 300,000 tonnes of ore that was hand sorted to an average grade of 5-6% Cu and 25-30% Zn. From 2005-2010, Dia Bras produced from the mine just over 600,000 tonnes at an average grade of 1.7% Cu and 8.6% Zn. Dia Bras transported mineralized rock 275 km by truck and rail to its Malpaso mill, located about 30 km west of Cuauhtémoc in central Chihuahua, from 2005 until October 2011 when the new Piedras Verde mill was commissioned only 5 km from the mine. (Note: the Company cannot use the term ?ore? because it has never completed a feasibility study.)