Source Exploration is focused on the acquisition and development of advanced stage silver projects in Mexico. Through the Company's Mexican subsidiary Roca Verde Exploración de México S.A. de C.V., the company has the right to earn a 100% interest in the past producing San Acacio Mine in the historic silver mining region of Zacatecas, Mexico.
The San Acacio silver property covers 746.6 hectares and is located on the south-eastern half of the Veta Grande vein system. The Veta Grande is the most prolific of four sub-parallel vein systems that run through the Zacatecas mining district. The adjacent Mala Noche vein system hosts the prolific Cozamin Mine of Capstone Mining Corporation below the historic workings. Their success underscores the robust nature of the old veins to depth in the Zacatecas District, a model which Source hopes to replicate at San Acacio.
At Source Exploration Corp, our strategy is to create maximum shareholder value by expanding the resource at the San Acacio property and advance the property to production. Source is also aggressively pursuing the acquisition of precious metals properties in both Mexico and Canada. As part of its exploration program for the San Acacio property, Source has completed an initial drilling program to explore the downward extension of high- grade Veta Grande vein system. The program was successful in identifying new vein structures and extending the Veta Grande vein system to depth. The company has also recently completed a National Instrument ("NI”) Indicated and Inferred resource estimate for the deposit based on 41 drill holes completed by Source and Silver Standard and 371 drill cores assay values contained within the mineralized zones. The San Acacio property is estimated to have an Indicated resource of 1.49 million tonnes containing 4.05 million ounces of silver and 9,00 ounces of gold or 4.59 million silver equivalent ounces. Inferred resources are estimated to be 4.18 million tonnes containing 14.35 million ounces of silver and 22,200 ounces of gold or 15.56 million silver equivalent ounces. Highlights of the estimate include:
-
Indicated Resource of 1.49 million tonnes at an average grade of 84.9 grams per tonne silver (g/ t Ag) and 0.19 grams per tonne gold (g/t Au) containing 4.05 million ounces of silver and 9,000 ounces of gold or 4.59 million silver equivalent ounces.
-
Inferred Resource of 3.44 million tonnes at an average grade of 80.0 g/t Ag and 0.16 g/t Au containing 8.84 million ounces of silver and 17,400 ounces of gold or 9.89 million silver equivalent ounces.
-
Mineralized fill Inferred resource of 0.74 million tonnes at an average grade 232.6 g/t Ag and 0.20 g/t gold containing 5.51 million ounces of silver and 4,800 ounces of gold or 5.80 million silver equivalent ounces.
The resource includes near both near surface mineralized material potentially amenable to open pit mining as well as a deeper resource more suitable for underground mining. Source's external consultants have advised that there is excellent potential to expand both the near surface and underground resource. An underground drilling program is currently underway to potentially extend to depth the high grade mineralized shoots mined in the historical stopes.
