The Pachuca SE Project, Hidalgo State, Mexico - A Pachuca-type high-level epithermal system? - Prospero ...
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The Pachuca SE Project, Hidalgo State, Mexico
A Pachuca-type high-level epithermal system?
Overview Technical Presentation, February 2017
1
Cautionary Statement
This presentation contains certain forward-looking statements concerning anticipated developments in Prospero’s operations in the future.
Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,”
“estimates,” “potential,” “possible,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or
“should” occur or be achieved. These forward-looking statements may include statements regarding exploration results and budgets,
reserve estimates, mineral resource estimates, work programs, capital expenditures, timelines including timelines for third-party studies
and issuance of permits to operate by various government agencies, strategic plans, the market price of metals, costs, or other statements
that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those currently anticipated in such statements due to a variety of risks, uncertainties
and other factors. Prospero’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date
the statements are made, and Prospero does not assume any obligation to update forward-looking statements if circumstances or
management’s beliefs, expectations and opinions should change.
Cautionary note to U.S. investors: the terms “measured and indicated resource”, “mineral resource”, and “inferred mineral resource” used
in this document are Canadian geological and mining terms as defined in accordance with National Instrument 43-101, Standards of
Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum
(the “CIM”) Standards on Mineral Resources and Mineral Reserves. We advise U.S. investors that while such terms are recognized and
required under Canadian regulations, the SEC does not recognize these terms. Mineral Resources do not have demonstrated economic
viability. It cannot be assumed that all or any part of a Mineral Resource will ever be upgraded to Reserves. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of or be included in feasibility or other studies. U.S. investors are cautioned
not to assume that any part of an inferred mineral resource exists, or is economically or legally mineable.
2Introduction
Prospero is seeking a JV partner for its Pachua SE project, Hidalgo, Mexico. Terms to be
negotiated.
• PSL’s Pachuca SE project covers a window through post-mineral cover volcanics which has
exposed fault-controlled alteration & veining over a strike length of more than 2km in a series
of clay pits.
• The structural trend is similar to the historic Pachuca mining camp roughly 20-25km to the
northwest
• The alteration is similar to alteration seen 100-200m above hi-grade ore bodies on the
Vizcaina vein in the Pachuca camp, with anomalous pathfinder elements and mildly
anomalous Au & Ag locally.
• PSL believes the 7,256ha concession has potential to host a system of Pachuca-type
epithermal veins.
• The area has no security or community issues and drill permitting is underway
3Summary
Target Type Pachuca-type low sulphidation epithermal Ag-rich vein system
Location 2 hours drive from Mexico City, ±25km from the City of Pachuca
Land Holdings 7,256 hectares
Mining History Extensive local mining history with production of 1.2B oz Ag + 6 Moz
Au from the Pachuca mining camp (Vizcaina, Real Del Monte etc)
Security Good. No issues in the 3 years Prospero has worked in the area
Community Mining friendly. Local mining from clay pits for ceramic-grade clays
within the concession.
Targets Structurally controlled hi-level alteration exposed in clay pits with
highly anomalous pathfinder elements, and probable high elevation
within the epithermal alteration system.
Alteration Illite-smectite associated with structures, with silica-kaolin-alunite at
higher elevations
Work Done Mapping, sampling, clay mineralogy & fluid inclusion work
Spend to Date $105k
4Contents
Page #
• Introduction 3
• Summary Overview 4
• Mineral Deposits of Northern Mexico 6
• Location 7
• Local Mining History 8
• Community & Security 10
• Work Done by Prospero 11
• Regional Geology 12
• Google Earth Image 13
• The Vizcaina Fault Zone 15
• Geology of Pachuca 16
• Pachuca SE Alteration 18
• Local Geology 19
• Photos of Pachuca SE 20-23
• Geochemistry / Sampljng Results 24-29
• Interpreted cross sections 30-32
• Fluid Inclusion Analysis 34-35
• Summary Slide 36
• Contact Details 37
5Mineral Deposits of Northern Mexico Recent or newer discoveries shown in bold.
Mulatos ⚒ ⚒ Dolores Sta. Eulalia
Yepachic
Trias ⚒
Bermudez
⚒ Pinos Altos
⚒Ocampo
USA
⚒ Naica
Magistral ⚒
Piedras Verdes
⚒ ⚒
⚒ Batopilas Los Gatos
⚒
Levon
Mexico
S. Fco. Del Oro
⚒ ⚒ Parral
Sta. Barbara ⚒
Gambusino
Baborigame
Villa Ocampo
Santa Maria Del Oro/ Matorral ⚒ Platosa
San Julian
⚒ ⚒ ⚒ Pitarrilla ⚒ Mapimi
Guanacevi
El Gallo
⚒⚒ San Luis Del Cordero
⚒
⚒ EW Fold Belt
Magistral Topia Jimulco
⚒ La Cienega Campana
Velardena ⚒⚒ ECU Silver
San Juan Tayahua
⚒ ⚒⚒
San Augustin ⚒
Avino ⚒GPE. Victoria
Bacis Nochebuena
⚒ ⚒⚒⚒Aranzazu
Gonzolo
⚒⚒
La Preciosa ⚒
Tayoltita Penasquito
⚒
Mala Noche ⚒
Camino Rojo
⚒
La Parrila
⚒ San Martin
Panuco
Sombrerete ⚒
⚒ Colorada ⚒ S.M. La Paz
⚒ ⚒
Copala
⚒ Del Toro⚒
⚒ Catorce
Rosario ⚒ ⚒ ⚒ Charcas
⚒⚒Fresnillo
La Rastra
Juanicipio
Cucharas
⚒ F. I. Madero
⚒⚒
⚒ El Indio San Nicholas
⚒
Real De Angeles ⚒ ⚒ Pinos ⚒ San Pedro
⚒ Orion
Coronel
⚒
⚒ El Dorado ⚒
Asientos
⚒ ⚒Xichu
Guanajuato
⚒ La Negra
Zimapan ⚒
El Petate
200km Pachuca ⚒
Pachuca SE
Existing or past Prospero project ⚒ Historic or current producing mine
6Location
Hidalgo State, 2 hours on sealed road from Mexico City
• Southern Hidalgo, a 2 hour drive on freeway from Mexico City
• Close to the historic Pachuca mining camp, which produced >1B oz Ag + 6M oz Au from epithermal veins
• Can drive to the property – no access issues
• Alteration exposed in a series of small pits being actively mined for clay for ceramics and bricks
• Accommodation and supplies available in Pachuca
7Local Mining History
• Pachuca was a major silver mining center until well into the 20th Century. Local culture has been influenced
by the historic immigration of miners from Cornwall in England
• Mining is reported to have started here in 1552 after a Spanish settler found silver on his ranch.
• Mining began to decline by the second half of the 20th century as the mines fell under Mexican government
control in the 1960s and the major veins were exhausted.
• The Pachuca-Real Del Monte mines are conservatively estimated to have produced 1.2 billion Troy ounces of
silver and 6.2 million ounces of gold and were an important contributor to the economy of the Spanish
empire*.
• Average mined grades are estimated to have been 500g/t Ag + 2.5g/t Au
• Within PSL’s target area, a number of adits and tunnels have been found presumably developed by the
Pachuca-Real del Monte operators suggesting that they recognised the similarity in the alteration at PSL’s
concession to the main mining camp. They excavated several levels over a 100m in length and shafts over
30m deep.
https://en.wikipedia.org/wiki/Mineral_del_Monte
8Pachuca City with Loreto Mine Head Gear
The City of Pachuca has an extensive silver-gold mining history stretching back to the 1550s
9Community & Security
• Prospero has encountered no security issues over the past 3 years whilst working at
Pachuca SE
• The property area is located 25 km SE of Pachuca City and hosts all basic infrastructure
including power lines, highways and gravel roads.
• The area consists both of privately-owned homes and ranches as well as surrounding ejido
land.
• The drill targets identified to date are located within private land where access has been
granted, and it is anticipated that permission for drilling will not be an issue.
10Work Done by Prospero
• PSL’s targets –including the Petate project - were found during regional prospecting and
mapping of the historic Pachuca mining district.
• PSL's geologists investigated a number of small pits mined for industrial clay. Epithermal-style
smectite-illite alteration is associated with major fault structures which parallel the main
Vizcaina vein.
• PSL has carried out regional and local scale mapping and prospecting. Small scale sampling of
the mapped alteration. Alteration mineralogy and fluid inclusion geochemistry.
• PSL has also carried out orientation geochemical sampling and clay alteration work on
exposed high-level alteration 150-200m above some of the richest ore bodies of the historic
Vizcaina vein to understand & characterize its surface expression
11Regional Geology
Area of next slide
12Google Earth Image
Trend of the Vizcaina vein
Pachuca
Cinder cones
Area of next slide
13Google Earth
North
Zone
South
Zone
14The Vizcaina Fault Zone
Pyrite-sericite alteration
The Vizcaina fault above the historic Pachuca mine – seen from road cut.
15Geology of Pachuca
16Comparative Geochemistry: Hi-level Vizcaina vs. Pachuca SE
PSL carried out orientation geochemical sampling and clay alteration work on exposed high-level alteration 200-250m
above some of the richest parts of the Vizcaina vein to characterize its surface expression & allow comparison with the
Pachuca SE geochemistry.
17Pachuca SE Alteration
Two styles of hydrothermal alteration have been recognised at Pachuca SE.
Silica-Kaolinite-Alunite Alteration
• At higher elevations in the southern zone, e.g. Cerro El Varal. Alteration along structures produces bleached and
microcrystalline silicified reefs up to 15m to 20m wide. On the southern flank of Cerro Varal a group of narrow
veins occur within an E-W trend 900m long, consisting of banded silica and chalcedony with locally abundant
pyrite, and silicification of the intrusive host rock.
Illite-Smectite Alteration
• At lower elevations in the more northern and central parts of the project, smectite-illite alteration was mapped
with oxidized pyrite, suggesting deeper geologic levels. This alteration is currently being mined from a series of
small pits for industrial clays.
18Local Geology
A window through the
post-mineral tuffs and
flows Aguayutla Structure
North
Zone
Alfajayuca Structure
El Tajo Structure
South El Varal Photos on next 2 slides
Zone
19Pachuca SE – South Zone: Alteration exposed in El Varal clay pit
El Varal pit
20El Varal, South Zone, looking east
211 2
Argillic alteration cap exposed in pit. Alteration associated with the View of the HW zone of the Aguayutla structure. Note infrastructure
northern zone Aguayutla structure. such as highway, power lines. Arrow shows rough location of photo 1
3 4
Western extension of the Aguayutla structure with well developed Detail of the same argillic alteration shown in the photo 3
argillic alteration and oxide-rich veinlets with anomalous Zn
22Pachuca SE: Quartz veinlets along structure
Quartz veinlets with anomalous Au and Ag hosted along structures cutting altered Volcanics.
2
1
Swarm of narrow quartz veinlets along a fault in clay altered Pachuca group
host rocks. Au and Ag are consistently anomalous in the veinlets with Au Quartz veining along structure. Same pit as
ranging from 0.14 to 0.26ppm and Ag from 2,3 to 4.9ppm. photo 1
23Geochemistry / Sampling Results
134 rock chip samples were assayed from Pachuca SE.
• The highest precious metal and zinc geochemistry occurs in the northern sector with anomalous Au from
0.1 to 0.61 ppm range, Ag assays from 1.0 to 2.92 ppm, and Zn assays of 100 to 5,290 ppm.
• These values coincide with the presence of narrow coarse crystalline quartz and calcite veins and iron
oxides closely associated with the mapped structures.
• In the Cerro Varal area, intrusive rhyolite hosts numerous pyrite-rich veins along an exposed length of
900m.
• The veins consist of cryptocrystalline quartz carrying anomalous values of Ba (up to 3780 ppm), Mo (up
to 561 ppm), and As (up to 209 ppm).
• Dickite alteration ocurs in the rhyolite intrusive wall rocks immediately an advanced argillic alteration cap
(alunite-kaolinite). Numerous workings and shafts up to 30m deep were developed by the old timers
along the pyrite-silica rich veins.
24Pachuca SE
Clay Mineralogy
25Sampling: Au + Ag
Au Ag
Anomalous Au (up to 0.61g/t Au) and Ag hosted along structures cutting altered in the norther part of the project area
26Sampling: Zn + Pb
Zn Pb
Spotty Zn and Pb anomalies throughout
27Sampling: As + Ba
As Ba
28Sampling: Mo + Fe
Mo Fe
29Interpreted Cross Sections
30Interpreted Cross Sections
31Interpreted Cross Sections
32Mapping of El Varal Adit
33Fluid Inclusion Analysis
• PSL has analysed fluid inclusions from veinlets above the Vizcaina vein, and from veinlets at
Pachuca SE
• Fluid inclusions from within the main ore bodies at Pachuca record temperatures of 280°-300°C
• Fluid inclusions from veinlets 200-250m above the main ore bodies at Pachuca record
temperatures clustering around 220°-260°C
• Fluid inclusions from the Pachuca SE veinlets record temperatures clustering around 210°-
260°C
• Fluid inclusion work therefore suggests the Pachuca SE alteration is roughly 200-250m above a
potentially mineralized horizon.
34Fluid Inclusion Analysis
35Summary Slide
• PSL’s Pachuca SE project covers a window through post-mineral cover volcanics which has
exposed fault-controlled alteration & veining over a multi-kilometer strike length in a series of
clay pits.
• The structural trend is similar to the historic Pachuca mining camp roughly 20-25km to the
northwest
• The alteration is similar alteration seen ±200m above hi-grade ore bodies on the Vizcaina
vein with anomalous epithermal pathfinder elements and mildly anomalous Au & Ag locally.
• PSL believes the concession has potential to host one or more Pachuca-type epithermal veins.
• The area has no security or community issues and drill permitting is underway
36Contact Us
Prospero Silver Corp.
1800-510 West Georgia St.
Vancouver,
BC. V6B 0M3
Ralph Rushton, Business Development
+1 604 307 0055
ralphr@prosperosilver.com
Tawn Albinson, President
albinson@prodigy.net.mx
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