Municipality of Santiago Papasquiero State of Durango, Mexico By: Alain R. Charest President and CEO of Arcelia Gold Corp Thursday, 5 th of May 2011
El Centenario
Location of the El Centenario Project SINALOA DURANGO
General Description of the El Centenario Project 1. The El Centenario Property consists of 12 adjoining mineral concessions totalling 9,846 hectares in size. 2. There is good road access from the City of Durango up to the towns of San Juan de Camarones and San Jose de Canas just east of the Property (8 hours drive). There is another road going through Topia that accesses the northwest corner of the Property. 3. The Property has been owned and sporadically mined on small scale by the same family who own the claims today for more than 60 years. 4. Although the Property is located in some of the most rugged terrain found in the Sierra Madre Occidental it contains extensive vestiges of old mine workings, some dating back to the 1700 s. The Property was never systematically explored until 2007.
History of the El Centenario Project - Field evidence suggests that some mineral prospects on the El Centenario Property, especially the high-grade Au- Ag structures have been exploited sporadically, at smallscale, since the Spanish Colonial days. - The Torres Meza family, who have controlled the mineral claims for the last 70 years, have pursued artisanal, smallscale mining on some of the high-grade structures such as Santa Margarita, La Trinidad and Lluvia de Oro. - A more systematic, reconnaissance exploration program, which included stream sediment, rock-chip and channel sampling and semi-detailed mapping on 3 specific areas of the property, was completed in 2007 and 2010.
The El Centenario Au-Ag Project Geology of the El Centenario Project LITHOLOGY Sedimentary Rocks (sandstones, conglomerate, shales, etc.) Lower Volcanic Series (andesite tuffs and flows) Upper Volcanic Series (rhyolite tuffs, flows, etc.)
The El Centenario Au-Ag Project Structures and Lineaments at the El Centenario Project
Structures and Lineaments at the El Centenario Project
Major Prospects on the El Centenario Project 1. La Esperanza (1.) La Esperanza (2.) Sta. Margarita San Juan de Camarones
The La Esperanza Ag-Au-Pb-Zn Prospect - Epithermal high-grade Ag-Au-Zn-Pb structure similar to Fresnillo PLC s La Cienega mine 20 km to the N-NE. - Sructure widths varying between 2 and 10 meters - Traced more than 2 km along strike and open at both ends. Only 1 km away from access road.
The La Esperanza Ag-Au-Pb-Zn Prospect SELECTED SERIES OF ROCK SAMPLE ASSAYS FROM THE LA ESPERANZA PROSPECT, EL CENTENARIO PROJECT Width Au(g/T) Ag(g/T) Au Eqv.(g/T) Zn(%) Pb(%) Cu(%) 1.6m 0.30 411 6.62 5.2 1.8 0.20 2.3m 0.44 152 2.68 1.0 0.2 0.06 3.3m 1.30 1854 29.84 7.8 5.2 0.35 3.5m 2.30 830 15.07 2.2 1.4 0.10 1.8m 0.17 246 3.95 -- -- -- 4.1m 0.85 366 6.48 -- -- -- 4.9m 1.25 600 10.48 -- -- -- 2.8m 0.63 447 7.51 -- -- -- grab 1.98 2932 47.09 8.4 5.3 --
Major Prospects on the El Centenario Project 2. Sta. Margarita (1.) La Esperanza (2.) Sta. Margarita San Juan de Camarones
The El Centenario Au-Ag Project The Sta. Margarita Au-Ag Prospect In 1966, the CRM (Consejo de Recursos Mineros de Mexico) and Sr. Filiberto Torres have mined 10,000 tons of high-grade material from a portion at the south end of the Sta. Margarita structure. TABLE 2. Gold and Silver geochemical assay results, CRM (Consejo de Recursos Mineros) 1966
The Sta. Margarita Au-Ag Prospect 0 500m EL CENTENARIO Sta. Margarita Prospect Epithermal Au-Ag Vein system GEOLOGY PLANMAP 14
The Sta. Margarita Au-Ag Prospect High grade Au-Ag low-sulfidation epithermal vein system with extensive vestiges of old workings N-NE trending host structure has been traced for more than 2 km along strike and remains open at both ends. Mineralized structure outcrops along a significant vertical extent, more than 500 meters. The intersection of a secondary highgrade, NW trending structure, located south of the main branch, represents a priority target.
The Sta. Margarita Au-Ag Prospect
SELECTED SERIES OF ROCK SAMPLE ASSAYS FROM THE STA. MARGARITA PROSPECT, EL CENTENARIO PROJECT WIDTH Au ppm Ag ppm Au Eqv. ppm Zn ppm Pb ppm Cu ppm 1,30 37,40 20,60 37,70 796 416 23 0,30 31,20 121,00 32,98 4880 6350 20 1,30 26,50 25,90 26,88 3680 3120 120 1,20 19,10 10,10 19,25 3200 1160 163 1,00 15,90 110,00 17,52 3040 1020 85 0,40 12,50 3,00 12,54 797 221 10 12,35 140,00 14,41 39500 41300 5,7 0,80 12,10 81,60 13,30 9510 115 1910 1,10 9,38 39,60 9,96 7720 1680 12 0,35 8,90 36,70 9,44 41700 29200 7 0,40 8,30 42,20 8,92 8540 5870 1,20 7,84 51,20 8,59 2790 1050 1,00 6,98 32,60 7,46 7120 1970 6,94 98,90 8,39 4470 1965 1,20 6,92 119,00 8,67 4100 4900 1,30 6,79 62,10 7,70 2300 687 1,20 6,50 36,90 7,04 29900 22700 0,60 6,25 10,90 6,41 23400 724 0,70 4,81 189,00 7,59 1890 1580 0,50 4,04 1,00 4,05 692 143 55 1,00 3,93 5,00 4,00 2250 667 43 1,20 3,45 39,70 4,03 13500 8830 171 1,25 3,36 3,70 3,41 703 326 133 2,60 3,26 6,40 3,35 9220 2350 28 2,60 3,19 2,30 3,22 298 184 124
General Geology of the El Centenario Project 3. Cerro de Oro (1.) La Esperanza (2.) Sta. Margarita San Juan de Camarones
The Cerro de Oro Au-Ag Prospect
The Cerro de Oro Au-Ag Prospect
The Cerro de Oro Au-Ag Prospect Multiple high grade Epithermal Ag-Au vein structures (more than 10 known to date). Old records from 1950 s mention the existence of more than 50 mineralized structures along the banks of Rio Boca del Infierno. The mineralized structures extend more than 1 km along strike. Some have significant vertical extent, greater than 500 meters. Extensive old Colonial times mine workings (dating back to 1600 s). Other mineralized targets at Cerro de Oro need to be evaluated including a broad zone of disseminated Ag mineralization. The abundance, extent, depth potential and grade of the Au-Ag bearing structures within this prospect suggest the presence of significant Au- Ag resources at Cerro de Oro
The Cerro de Oro Au-Ag Prospect: La Trinidad
The Cerro de Oro Au-Ag Prospect: La Quemada
The Cerro de Oro Au-Ag Prospect
The Cerro de Oro Au-Ag Prospect Lluvia de Oro La Trinidad