It is well mentioned throughout mining circles that the best place to look for a potential mine is somewhere close to where a mine has already existed. Today we look at a small junior miner that is doing just that. Silver Spruce Resources SSE has been exploring for gold and silver at the Pino de Plata Project in the Sierra Madre Occidental silver-gold belt of Mexico. Their property lies in the southwest corner of the state of Chihuahua. Evidence of mining and metal extraction goes back to the Spanish Colonial era of the 1600's. Artisanal and small scale surface mining of high-grade silver/base metal veins (likely >1,000 g/ton silver) are evident at workings at nine (9) discrete locations on the property.
Many producing mines in the Sierra Madre are classified as epithermal deposits. The Pino de Plata property high base metal values (Pb, Zn,Cu) that are often associated with high precious metal values in these epithermal veins. Coeur Mining's Palmerejo mine located approximately 15 km NE of Pino de Plata, within the mineralized portions of the structures, silver and gold can be zoned from top to bottom with higher silver values occurring in the upper parts of the deposit and higher gold values in the lower parts.
A recently completed 43-101 exploration assessment yielded many silver values in excess of 200 g/ton and some greater than 500 g/ton from areas that for the most part have either been high-grade at surface or are highly altered and leached (gossan) at surface. The 43-101 assessment described large areas of alteration on a property with limited exposure and recommended an aggressive exploration program.
The property was examined in 1985 by Consejo de Recursos Minerales and in 2013 and by Arcelia Gold. Both focussed on existing workings and made resource estimates that could not be assessed due to unclear methodology and unsafe access to their sampling areas. Over the last thirty years, the recent owner surface mined and directly shipped high-grade (est.> 1000 g/ton) ores to third-party mills and smelters.
Despite the significant amount of small-scale surface mining, the Pino De Plata Property has never been drilled. A 2015-2016 work program is planned with an estimated expenditure of 1.4 million. The 2015-2016 program which would happen over a 9 month period calls for more detailed mapping of the property and more concentrated sampling and mapping in the areas of alteration and veining. Based on current knowledge of the mineralization the company expects many of these drill holes to be shallow.
Silver Spruce has only 21 million Shares O/S. Fully diluted there is 26 million. Stock price ranges from 1.5 cents to 10 cents.
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