The Discovery Of The El Sauzal Gold Deposit In Chihuahua State, Mexico

The El Sauzal deposit is a classic, high sulfidation, epithermal gold system located in southwestern Chihuahua State, Mexico. The prospect was discovered by a Francisco Gold Corp. geologist in1995. El Sauzal was encountered as a result of an extensive grass-root exploration program in the rugged, dissected volcanic terrains of the Sierra Madre Occidental, around the historical Batopilas Silver Camp. At El Sauzal, high grade gold is hosted within a series of more permeable, low-dipping, lithic and fine-grained dacitic rocks of early Tertiary age. The mineralization appears to be both structurally and lithologically controlled. The alteration characteristics are typical of a high sulfidation system including kaolinite, illite, alunite, dickite and pyrophyllite. The deposit’s gold distribution, as recorded from drill-hole data and surface samples, varies from 0.2 to 650.0 g/t. The estimated geological resource, as calculated from an independent study completed in 1998, was 3.0 million oz @ 2.03 g/t including a minable reserve of1.8 million oz @ 3.3 g/t.