 | 
Last:
$0.31
High:
$0.31
Low:
$0.29
Chg:
+0.03
Vol:
201575
|
  | ||||||||||||||||||||||||||
La Cigarra Project, Chihuahua Mexico
La Cigarra Project is located in the state of Chihuahua along the eastern fringes of the Sierra Madre Occidental in north central Mexico; 26 kilometres from the historic silver mining city of Parral. La Cigarra is close to power, has good road access, topography and infrastructure.
La Cigarra was identified as an acquisition target by exploration staff late in 2008, as part of the Company's generative exploration program. Reconnaissance and initial sampling results completed by Northair confirm numerous silver occurrences currently traced over a 3 kilometre trend of mineralization. The Company, through an ongoing technical review has defined three potentially significant zones of silver mineralization within the property and believes that all three zones have the potential to contain both high grade vein as well as bulk tonnage surface minable silver deposits. Although there are dozens of small to medium sized old historic workings within the project area, there is no evidence of any modern exploration. The Company's wholly-owned subsidiary, Grupo Northair de Mexico, S.A. de C.V. can acquire a 100% interest in the optioned concessions by paying US$450,000 over a five year period.
Initial exploration at La Cigarra was focused on three main areas that include the Las Carolinas, San Gregorio and La Borracha zones. Exploration by the Company on the three zones included a series of detailed geological mapping and surface sampling along the main trend. Results of surface sampling returned significant silver values ranging between 2.5 g/t silver to over 1,900 g/t silver, with sample lengths variable from 1 to 10 metres. Core Drill Program In December 2010, Northair commenced a core drill program,totaling 1,500 metres in a minimum of 6 drill holes. Based on successful drilling, the core drill program was expanded to target a 2,000 metre portion of the La Cigarra mineralized system (encompassing the San Gregorio and Las Carolinas zones). To date, 11 reverse circulation and 50 core drill holes have been drilled within the 2,000 metre area with all returning significant silver intercepts. The drilling has clearly identified a mineralized zone that extends from the southern end of the Las Carolinas Zone to the northern end of the San Gregorio Zone. The La Cigarra mineralized system outcrops at surface and dips at approximately 45 degrees, parallel to the bedding of the sedimentary host rocks. Significant silver grades have been intersected up to 200 metres down dip and the system remains open at depth and along strike. The average thickness of the significantly mineralized system is 50 metres with the length weighted average silver grade of approximately 50 g/t. In addition to the silver the system reports associated gold and base metals. Core Drill Results to Date: Click here to View Core Drill Results 2010 Reverse Circulation Drill Program In the summer of 2010, the Company carried out a phase I drill program to confirm surface silver values and expand geological knowledge on the property. Drilling intercepted significant widths of altered and mineralized sediments and volcanics with highlights of near surface drill intercepts of 32 metres of 132.4 g/t silver in Hole CRC-10-06 at the San Gregorio Zone, 10.7 metres of 172.5 g/t silver in Hole CRC-10-01 at the Las Carolinas Zone and a near surface intercept of 7.26 metres of 68 g/t silver in Hole CRC-10-13 at the La Boracha Zone. In addition to silver, all intercepts returned anomalous and locally significant zinc with lead and copper. RC Drill Results: Click here to View RC Drill Results Gold Analysis During the phase I reverse circulation drill program, which was focused on potential silver mineralization, the Company carried out a random analysis for gold on selected drill intercepts. This analysis returned highly anomalous gold values and to further investigate the significant selected gold assays, Northair chose Hole CRC-10-11 to be completely analyzed for gold. Results of this analysis are encouraging as the entire intercept, over 100 metres in length, confirmed anomalous gold mineralization highlighted by 1.5 metres of 1.18 g/t gold within a near surface intercept of 10.7 metes of 0.41 g/t gold or 15.3 metres of 0.36 g/t gold. As a result of the positive gold assays, the Company will continue assaying drill intercepts for gold. Based on multi-elemental analysis, studies reveal that gold mineralization within the reported drill intercepts correlate strongly with silver, lead and antimony. This is consistent with the element correlation with silver from surface samples for both the San Gregorio and La Borracha zones. Based on the statistical correlation alone, both zones could very likely be as anomalous in gold as they are in silver. Results of gold assays will be announced as soon as they become available.
The La Cigarra mineralized system is hosted within sedimentary rocks and can be traced in outcrop for upwards of 3 kilometres on strike. The mineral system strikes northwest and dips moderately northeast and mirrors the strike and dip of the host sediments. Mineralization is spatially associated with narrow diorite to granodiorite sills. Silver and base metals occur in sulfides hosted within quartz-vein stockwork zones and silicified breccias containing disseminated sulphides. The recognition of disseminated style of mineralization strongly enhances the economic potential of the Project.
Northair is currently conducting a 7,500 metre core drill program within the San Gregorio and Las Carolinas zones that will include infill drilling along the 2,000 metre trend and testing the permissive connecting area separating the two zones. An initial resource estimate is being prepared by JDS Energy & Mining Inc., and is expected out in early Q3 2012. In addition, phase II metallurgical testing is ongoing with updated results expected in Q2 2012. Preliminary results of the phase II program are consistent with the phase I metallurgical test results, which indicated silver recoveries in the 84% to 94% range using a rougher flotation process. The preliminary results of the phase II program also indicate the possibility of recovering gold and base metals in a bulk concentrate, which could provide important byproduct credits. JDS Energy & Mining Inc. has also been retained to prepare a Preliminary Economic Assessment ("PEA") on the La Cigarra project. Work will begin after the initial resource estimate and phase II metallurgical work is complete. Barring any unexpected delays, the PEA should be completed in Q4 2012.
|
