The Colibri Project is located within a district of northern Sonora that includes 14 significant gold deposits, most notably La Herradura, Noche Buena and El Chanate. As shown on the “Project Summary” map (previous page), all of these deposits occur along northwest-trending Mojave-Sonora megashear, a major Late Jurassic continental-scale transform fault analogous to the modern-day San Andreas fault. Colibri geologists believe that the megashear was responsible for structural preparation of ground that continues to yield significant gold results from properties that include the 6564 hectare Colibri Project.
Agnico-Eagle Mines Ltd.
On May 27, 2011, the Company finalized an Earn-In and Shareholders Agreement with Agnico-Eagle Mines Ltd. (AEM) regarding the Company’s Colibri property. Pursuant to the Agreement, AEM may acquire up to a 75% interest in the Colibri gold project and form a joint venture with the Company by making qualified exploration expenditures and payments to Colibri. To earn a 75% interest in the Colibri Project, AEM is required to spend, over the next three years, a minimum of US$3.0 million in exploration expenditures as well as complete a positive feasibility study within five years. As required under the Agreement, the Company incorporated a Mexican wholly-owned subsidiary of a B.C. company and transferred all rights, title and interest in the Colibri Project to the Mexican subsidiary.
Pursuant to the above Agreement, AEM will be required to make option payments to Colibri totalling US$1,452,000 over a seven year period. After completion of the feasibility study and earning a 75% interest in the Colibri Project, AEM and Colibri may form a joint venture to develop the Project. Pursuant to the Agreement, AEM also made an equity investment in Colibri by purchasing 3 million units at $0.20 per unit for gross proceeds of $600,000. Each unit is comprised of one common share and one share purchase warrant. Each warrant is exercisable into one common share at an exercise price of $0.35 per common share until May 26, 2013.
La Herradura is the largest operating gold mine in Mexico. It is jointly owned by Newmont Mining and Industriales Peñoles. La Herradura presently contains over 10 million ounces of gold reserves, and during 2004, produced 150,000 ounces of gold at a cost of less than $145 per ounce. The same ownership group now owns the Noche Buena deposit, located 12 miles northwest of the Colibri Project area, is currently constructing a mine. In 2006, Peñoles drilled a fence of nine reverse-circulation holes along the eastern edge of the Colibri Property. AuRico Gold’s El Chanate mine, located 20 miles to the southeast, started production in August, 2007.
Past Exploration Activities
Exploration on the Colibri Project targeted down-dip projections of high grade quartz veins and associated hematite-silica breccia zones that cut Jurassic volcanic and sedimentary rocks (see drill core photos below). Scores of underground mine workings and prospect pits dating back to the Spanish occupation are focused on these veins. Geological mapping (see illustrations below) reveals that the veins were originally emplaced along steep NW and NE-trending fractures associated with the Late Jurassic megashear. Gold appears to have been mobilized and concentrated later during Laramide compression, when the veins were rotated and sheared along moderately-dipping reverse faults. A younger generation of Tertiary low-angle normal faults (detachment faults) intersects the reverse faults, resulting in dissemination of gold along shallow, undulating breccia zones. Two of these detachment faults were apparently imaged by an electrical geophysical survey (see illustrations below).
Reverse-circulation drill holes totaling 5600 m targeted gold-bearing quartz veins and associated reverse faults on the Colibri Project during 1994, 1998, and 2005. Four areas were drilled: San Francisco mine, Juarez mine, Nopal Zone, and Panteon Zone, with significant gold assays reported in Table 1 below. This work was followed up by 2152 m of diamond core drilling during 2006-07. Diamond drilling confirmed gold mineralization at San Francisco mine, and intersected a resistivity-chargeability anomaly within the Naranja Zone that corresponds to disseminated gold occurrence along a mapped detachment fault. Colibri’s August 13, 2007 News Release, keyed to the maps and tables presented below, summarizes the history of drilling and pertinent gold results on the Colibri Project.
Gold Results from Recent Drilling and Surface Sampling on the Colibri Property: (click to enlarge illustrations)
Updated Geologic Map of the Colibri Property, Showing Gold Assays from Rock Chip Samples Collected Through 2009
Legend for Geologic Map
Contour map of gold in soils superimposed on the Tortuga Zone rock-chip sample map
Contour map of gold-in-soils superimposed on the SE Extension Zone rock-chip sample map
Geologic and structural map of the Colibri mineral concession
Map showing locations and gold assays (in grams/metric ton) of rock-chip samples from the SE Extension Zone
Map showing locations and gold assays (in grams/metric ton) of rock-chip samples from the Tortuga Zone
Gold assays of rock-chip samples from La Tortuga and El Diente Zones
Gold assays of rock-chip samples from the southeast Naranja Zone
2008 RC and Percussion Drilling Assays
Table1: History of Drilling on the Colibri Property, with Significant Gold Assays
Table 2: Gold Assay Results from the 2006-07 Diamond Drill Program
Map of Cross-section NAPD14/NAPD25
Map of Drill Targets in Central Colibri Property, Showing Locations of all Holes Drilled to Date
Map of Drill Targets in Nopal Zone, Showing Locations of all Holes Drilled to Date<
Report on 1998 Reverse-Circulation Drill
Maps & Photos
(Click to enlarge)
Geologic map showing structural controls for gold mineralization near the San Francisco and Juarez claims. Refer to Figure 7 below for cross sections.
Geologic cross sections showing recent drill targets on the Colibri property. Mineralized quartz veins (red streaks) are affected by Laramide reverse faults and younger Miocene(?) detachment faults.”
Recent Induced Polarity (IP)-Resistivity survey results depicted in map view. 3-D inversion by S. J. Geophysics, Ltd.
Profile view of the IP-Resistivity model, showing subsurface interpretation of important low-angle structures relative to geophysical anomalies. Low-resistivity values omitted for clarity.
Profile view of the IP-Resistivity model, showing subsurface interpretation of important low-angle structures. Includes low-resistivity values in blue colors.
Colibri Regional Geology
Colibri Panorama Landscape
Colibri Claim Map
Juarez Mine head frame
Juarez Mill Site and Tailings
Juarez Mill Site and Tailings Pile