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NWM Mining Corp. (TSXV: NWM) - Properties
Sierra Pinta Gold Mine
The Sierra Pinta gold mine was developed on two shafts (Dolores shaft / La Pinta shaft). The shafts were sunk along narrow, high-grade, gold bearing veins. The property titled by NWM includes the past producing underground gold mines and surrounding areas. The Company has a combined total ground holding of some 2,715 hectares. This property is located approximately 25 km from La Herradura gold mine which is Mexico’s largest producing gold mine and is a joint venture between Industriales Penoles and Newmont Mining Corp (NYSE: NEM). The ‘Penmont joint venture’ has been responsible for the discovery of two new ore bodies in recent years, dipolos and soledad, and these deposits are also now being progressed toward production.
The Sierra Pinta project hosts two shafts to old workings which were sunk along narrow, high grade, gold/silver veins. The mines were operated in the late 1800’s by British interests who used a rail link that had been built to the Sea of Cortez for direct shipping of ore. More extensive underground mining took place in the 1950’s. NWM’s claims around the Sierra Pinta mine and adjacent areas total some 2,715 hectares.
Property Highlights
1. Property is located in geological proximity to “La Herradura gold mine”.
2. Past producing underground high grade gold mine.
3. Measured resource of 2,870 tonnes grading 18.12 g/t (indicative of vein grades).
4. The most recent technical report states that “There is considerable potential for the delineation of additional gold resource in the immediate area of the old workings.”
Lluvia de Oro / La Jojoba Project
The Lluvia de Oro / La Jojoba project area is located approximately 100 kilometres due south of Nogales Arizona, 16 kilometres northwest of Magdalena de Kino, Sonora, Mexico. The property is 100% owned by the Company. It totals 5,074.52 hectares in size and includes the Lluvia de Oro gold mine, the La Jojoba gold resource plus a fully commissioned recovery plant complete with a biosulphide process facility (SART circuit) for the treatment and recovery of copper within the solutions.
Property highlights
• Extensive property position (5,074.52 hectares),
• Property wide: Measured and Indicated resources totaling 293,821 contained oz. Au
• Fully commissioned recovery plant on site and
• Numerous drill targets defined at both Lluvia de Oro and La Jojoba, scheduled to be tested in 2010.
Geology / Mineralization
The Lluvia de Oro gold-silver-copper mineralization is primarily contained within the upper plate of a detachment fault block of Early Cretaceous sedimentary rocks. The detachment block is approximately 3 km. long, 800 to 1,500 meters wide, and 220 to 234+ meters thick in the central portion. The detachment block lies in structural contact above metamorphosed Jurassic to Mid-Tertiary volcanic, sedimentary and intrusive rocks of the Magdalena Metamorphic Core Complex.
The northeast trending Lluvia Shear Zone is the principal mineralized structure consisting of a broad sub – vertical zone of sheared and structurally dissected rock units that can be traced in discontinuous outcrop for more than 1,700 meters along strike.
Two principal envelopes of bulk-tonnage mineralization have been recognized at Lluvia de Oro and due to their relative positions, the mineralized envelopes are termed the “Upper” and “Lower” zones respectively. In both mineralized envelopes, gold-silver-copper (Au-Ag-Cu) mineralization occurs as diffuse mineralization in rocks pervasively altered by weak to moderately intense hydrothermal alteration. Field evidence indicates that the mineralization is associated, at least in part, with disseminated, and fracture-controlled sulfides, or their oxidation products. Locally, the two mineralized envelopes merge so that the two zones cannot be distinguished. Taken as a whole, the mineralization is bulk-tonnage in nature, with a propensity for higher grade sections to be related to structural controls.
Similar gold mineralization occurs at La Jojoba where the Northeast Zone is associated with breccias, high-angle and low-angle structures which cut through the host rock lithologies in many different directions, and associated with disseminated sulfides in veins and the bulk-tonnage rock lithologies. Specular hematite and siderite veins, quartz-calcite veinlets and breccias (±copper oxides and silicates) are commonly associated with gold-bearing structures and with disseminated sulfides in oxide and sulfide environments.
Lluvia de Oro and La Jojoba Resource Estimates
In April 2007, DENM Engineering completed an independent Pre-Feasibility Report for the combined Lluvia de Oro and La Jojoba projects. The results of the study were presented as a series of grade tonnage tables for a variety of gold cut off grades. The tables below show the resource estimates at a gold cut off of 0.30 g/t Au.
Exploration Potential
In 2010, NWM has scheduled 25,000 metres of drilling to develop the gold resources at depth and along strike in addition to upgrading the ore categories at both Lluvia de Oro and La Jojoba. Numerous drill targets will also be tested in 2010 and their characteristics are as follows:
Southeast Lobe Creston Pit
The southeast portion of the existing Creston Pit was previously drilled with angle drill holes in a SE direction. Many of the existing drill holes were terminated in mineralization and the rocks above the bottom of these holes have not been fully evaluated. Projections of known mineralization indicate that new resources should be found in the area.
NE Pit Extension
The northeast portion of the Creston Pit was drilled with angle holes pointed in a NW direction. Relatively wide-spaced drill lines and limited depth of drilling failed to recognize potential zones of additional resources in this area. Drilling in 2010 will attempt to connect and expand on the mineralization.
Lluvia Shear
The Lluvia Shear is a generic term for all mineralization identified to the northeast of the NE Pit Extension. Previous exploration conducted by Minera Lluvia de Oro indicated that Au-Ag-Cu mineralization exists 800+ metres to the northeast of the current edge of the Creston Pit. Mineralization has been defined at surface through widely spaced trench sampling (TR-19 thru TR-22) over the trend. The best results obtained were returned from trench TR-22 located approximately 750 metres northeast of the Creston Pit. At this location, three trenches cross cut the Lluvia Shear, the best results of trench sampling returned 24 metres grading 2.4 g/t Au along the northwest edge of the structural trend. Approximately 150 metres northeast from TR-22, the Lluvia shear is present in TR-37 which returned 48 metres grading 0.7 g/t Au. Placer gold has also been reported in this area. Additional drilling along this trend is expected to add new resources to the Upper Zone tally.
Lower Zone
The Lower Zone at Lluvia de Oro has been tested by only a few drill holes to date (thus the inordinately high amount of Inferred Resources). The objective of drilling in the current campaign will be to test areas of the Upper Zone, described above, and to drill into and through the underlying Lower Zone. The lateral limits of the Lower Zone have not been defined to date, and historical drilling by Minera Lluvia de Oro encountered favorable results such as hole L-259 (56.7 vertical metres of 1.3 g/t Au and 0.37% Cu), L-240 (50.3 vertical metres of 1.19 g/t Au and 0.15% Cu), and L-239 (38.1 vertical metres of 1.34 g/t Au and 0.16% Cu). Further drilling is expected to expand the resource base for that zone.
El Cobre
Located approximately 600 metres south of the Creston Pit, the El Cobre target is defined by three historical trenches (T29, T30 and T31) and a shaft; the best trench assays returned from trench T-29 which reported 15 metres of 0.7 g/t Au. Approximately 25 metres due west from this location, Fresnillo drill hole 90–40 reportedly intersected 6.1 metres grading 7.5 g/t Au at a depth of 9.8 metres. Twinning of this drill hole will be a priority.
El Pozo
The El Pozo target is located approximately 750 metres southeast of the Creston Pit and is defined by 3 historically sampled trenches (T32, T33 and T34) and four historic shafts. Defining this target is trench T33 which returned 66 metres of 1.3 g/t Au. Fresnillo (1990) followed up on this target, completing three drill holes adjacent to (within 10 metres) trench 33, with all holes returning near surface values of 0.8–0.9 g/t Au to a maximum depth of 12.1 metres.
Este Target
The Este Target is a zone of intensely altered and iron-stained host rocks with complicated structure along the edge of the detachment fault. Additional geological study will be conducted before drilling is considered for this area.
Condemnation Drilling
During earlier phases of drilling the Lluvia de Oro property by the Company’s predecessors, only one exploration drill hole was put down west or northwest of the current Creston Pit. Some condemnation drill holes were drilled on the southwest portion of the current leach pad area, but these holes were shallow (generally less than 12 meters). Some drill holes in the current plan are intended to condemn certain areas for infrastructure development, such as leach pad extensions and disposal areas, however these too will be considered exploration drill holes until we can determine the lateral limits of previously identified mineralization.
La Jojoba
Northeast Zone
The resource base is well defined for the Northeast Zone with the majority of the resources in the Measured plus Indicated Resource classifications. Exploration drilling in 2010 will be directed at potential discovery of new resources in areas of, or suspected Au-Ag-Cu mineralization, such as those described below:
Campamento Zone
The Campamento Zone is delineated by a broad area of multi–element geochemical anomalies in sedimentary rocks similar to the Lluvia de Oro mineralization. The area was the focus of limited underground mining in the late 1800s and early 1900s. Structurally controlled Au-Cu-Ag mineralization has been tested by a few early drill holes with limited success, but additional drilling will explore deeper and wider than previous exploration.
Papalote and North Zone
Lithologies similar to those for the Northeast Zone occur at the Papalote and North Zone. Limited historical drilling has indicated similar Au-Ag-Cu mineralization, but no resources have been defined to date. With more than 600 metres separating these targets from the defined Northeast Zone, drilling in 2010 will be oriented to define the connection or relationship between the zones, and to define grade and thickness parameters.
Property highlights
• Extensive property position (5,074.52 hectares),
• Property wide: Measured and Indicated resources totaling 293,821 contained oz. Au
• Fully commissioned recovery plant on site and
• Numerous drill targets defined at both Lluvia de Oro and La Jojoba, scheduled to be tested in 2010.
Geology / Mineralization
The Lluvia de Oro gold-silver-copper mineralization is primarily contained within the upper plate of a detachment fault block of Early Cretaceous sedimentary rocks. The detachment block is approximately 3 km. long, 800 to 1,500 meters wide, and 220 to 234+ meters thick in the central portion. The detachment block lies in structural contact above metamorphosed Jurassic to Mid-Tertiary volcanic, sedimentary and intrusive rocks of the Magdalena Metamorphic Core Complex.
The northeast trending Lluvia Shear Zone is the principal mineralized structure consisting of a broad sub – vertical zone of sheared and structurally dissected rock units that can be traced in discontinuous outcrop for more than 1,700 meters along strike.
Two principal envelopes of bulk-tonnage mineralization have been recognized at Lluvia de Oro and due to their relative positions, the mineralized envelopes are termed the “Upper” and “Lower” zones respectively. In both mineralized envelopes, gold-silver-copper (Au-Ag-Cu) mineralization occurs as diffuse mineralization in rocks pervasively altered by weak to moderately intense hydrothermal alteration. Field evidence indicates that the mineralization is associated, at least in part, with disseminated, and fracture-controlled sulfides, or their oxidation products. Locally, the two mineralized envelopes merge so that the two zones cannot be distinguished. Taken as a whole, the mineralization is bulk-tonnage in nature, with a propensity for higher grade sections to be related to structural controls.
Similar gold mineralization occurs at La Jojoba where the Northeast Zone is associated with breccias, high-angle and low-angle structures which cut through the host rock lithologies in many different directions, and associated with disseminated sulfides in veins and the bulk-tonnage rock lithologies. Specular hematite and siderite veins, quartz-calcite veinlets and breccias (±copper oxides and silicates) are commonly associated with gold-bearing structures and with disseminated sulfides in oxide and sulfide environments.
Lluvia de Oro and La Jojoba Resource Estimates
In April 2007, DENM Engineering completed an independent Pre-Feasibility Report for the combined Lluvia de Oro and La Jojoba projects. The results of the study were presented as a series of grade tonnage tables for a variety of gold cut off grades. The tables below show the resource estimates at a gold cut off of 0.30 g/t Au.
Exploration Potential
In 2010, NWM has scheduled 25,000 metres of drilling to develop the gold resources at depth and along strike in addition to upgrading the ore categories at both Lluvia de Oro and La Jojoba. Numerous drill targets will also be tested in 2010 and their characteristics are as follows:
Southeast Lobe Creston Pit
The southeast portion of the existing Creston Pit was previously drilled with angle drill holes in a SE direction. Many of the existing drill holes were terminated in mineralization and the rocks above the bottom of these holes have not been fully evaluated. Projections of known mineralization indicate that new resources should be found in the area.
NE Pit Extension
The northeast portion of the Creston Pit was drilled with angle holes pointed in a NW direction. Relatively wide-spaced drill lines and limited depth of drilling failed to recognize potential zones of additional resources in this area. Drilling in 2010 will attempt to connect and expand on the mineralization.
Lluvia Shear
The Lluvia Shear is a generic term for all mineralization identified to the northeast of the NE Pit Extension. Previous exploration conducted by Minera Lluvia de Oro indicated that Au-Ag-Cu mineralization exists 800+ metres to the northeast of the current edge of the Creston Pit. Mineralization has been defined at surface through widely spaced trench sampling (TR-19 thru TR-22) over the trend. The best results obtained were returned from trench TR-22 located approximately 750 metres northeast of the Creston Pit. At this location, three trenches cross cut the Lluvia Shear, the best results of trench sampling returned 24 metres grading 2.4 g/t Au along the northwest edge of the structural trend. Approximately 150 metres northeast from TR-22, the Lluvia shear is present in TR-37 which returned 48 metres grading 0.7 g/t Au. Placer gold has also been reported in this area. Additional drilling along this trend is expected to add new resources to the Upper Zone tally.
Lower Zone
The Lower Zone at Lluvia de Oro has been tested by only a few drill holes to date (thus the inordinately high amount of Inferred Resources). The objective of drilling in the current campaign will be to test areas of the Upper Zone, described above, and to drill into and through the underlying Lower Zone. The lateral limits of the Lower Zone have not been defined to date, and historical drilling by Minera Lluvia de Oro encountered favorable results such as hole L-259 (56.7 vertical metres of 1.3 g/t Au and 0.37% Cu), L-240 (50.3 vertical metres of 1.19 g/t Au and 0.15% Cu), and L-239 (38.1 vertical metres of 1.34 g/t Au and 0.16% Cu). Further drilling is expected to expand the resource base for that zone.
El Cobre
Located approximately 600 metres south of the Creston Pit, the El Cobre target is defined by three historical trenches (T29, T30 and T31) and a shaft; the best trench assays returned from trench T-29 which reported 15 metres of 0.7 g/t Au. Approximately 25 metres due west from this location, Fresnillo drill hole 90–40 reportedly intersected 6.1 metres grading 7.5 g/t Au at a depth of 9.8 metres. Twinning of this drill hole will be a priority.
El Pozo
The El Pozo target is located approximately 750 metres southeast of the Creston Pit and is defined by 3 historically sampled trenches (T32, T33 and T34) and four historic shafts. Defining this target is trench T33 which returned 66 metres of 1.3 g/t Au. Fresnillo (1990) followed up on this target, completing three drill holes adjacent to (within 10 metres) trench 33, with all holes returning near surface values of 0.8–0.9 g/t Au to a maximum depth of 12.1 metres.
Este Target
The Este Target is a zone of intensely altered and iron-stained host rocks with complicated structure along the edge of the detachment fault. Additional geological study will be conducted before drilling is considered for this area.
Condemnation Drilling
During earlier phases of drilling the Lluvia de Oro property by the Company’s predecessors, only one exploration drill hole was put down west or northwest of the current Creston Pit. Some condemnation drill holes were drilled on the southwest portion of the current leach pad area, but these holes were shallow (generally less than 12 meters). Some drill holes in the current plan are intended to condemn certain areas for infrastructure development, such as leach pad extensions and disposal areas, however these too will be considered exploration drill holes until we can determine the lateral limits of previously identified mineralization.
La Jojoba
Northeast Zone
The resource base is well defined for the Northeast Zone with the majority of the resources in the Measured plus Indicated Resource classifications. Exploration drilling in 2010 will be directed at potential discovery of new resources in areas of, or suspected Au-Ag-Cu mineralization, such as those described below:
Campamento Zone
The Campamento Zone is delineated by a broad area of multi–element geochemical anomalies in sedimentary rocks similar to the Lluvia de Oro mineralization. The area was the focus of limited underground mining in the late 1800s and early 1900s. Structurally controlled Au-Cu-Ag mineralization has been tested by a few early drill holes with limited success, but additional drilling will explore deeper and wider than previous exploration.
Papalote and North Zone
Lithologies similar to those for the Northeast Zone occur at the Papalote and North Zone. Limited historical drilling has indicated similar Au-Ag-Cu mineralization, but no resources have been defined to date. With more than 600 metres separating these targets from the defined Northeast Zone, drilling in 2010 will be oriented to define the connection or relationship between the zones, and to define grade and thickness parameters.
