Almaden expands Mexican portfolio

Almaden Resources (AMH-V) is no stranger to Mexico after having discovered the La Trinidad gold deposit in Sinaloa. Still enamored with the country’s mineral potential, the Vancouver-based junior has added the Caballo Blanco and Yago properties to its Mexican portfolio.

Almaden has focused its exploration efforts on the Caballo Blanco gold-silver-copper prospect, situated 75 km northwest of the port city of Veracruz. The junior holds a 100% interest in the 40,000-ha property, subject to a 2.5% net smelter return (NSR) royalty.

Several alteration zones have been identified peripheral to a collapsed volcanic edifice.

Work to date includes geologic mapping, a 3,500-sample soil geochemistry survey, 80 line km of induced-polarization (IP) surveys and 60 line km of ground magnetic surveys.

Strong IP anomalies have been found that appear to be structurally controlled, with widths in excess of 50 metres and strike lengths of about 1 km. These anomalies have been traced to a depth of about 350 metres.

Overlying quartz-barite-vein float has been reported to contain values as high as 500 grams silver per tonne, 14% zinc and 1.2% copper. Gold values from the float are said to be commonly over 1 gram per tonne.

A broad chargeability high has also been found associated with an intense magnetic high measuring 1.4 km by 2.4 km. This is thought to represent a high-sulphidation system cored by a strongly magnetic body. The geophysical response is spatially associated with a quartz-diorite intrusive body as well as porphyry-style potassium-silicate alteration and coincident anomalous gold and copper soil geochemistry. Sampling along a 700-metre creek bed has revealed gold and copper values grading 0.7 gram gold and 0.23% copper over a strike length of 55 metres.

A 2,500-metre program of reverse-circulation drilling designed to test both targets is in progress.

Across the country in Nayarit state, Almaden holds rights to the 14,000-ha Yago property, a gold-silver prospect in an area of extensive hydrothermal alteration in the form of opaline silicification and kaolinite-alunite acid-sulfate alteration. On a portion of the property, stockwork quartz veining and quartz-adularia veining is evident. Numerous historic workings have been found.

In August 1997, Almaden completed a soil survey over a 1.5-by-2-km grid.

Results revealed a 100-part-per-billion (PPP) gold-in-soil anomaly over an area of about 800 by 500 metres. The anomaly covers an area devoid of old workings. Antimony and silver soil anomalies are reported to correlate well with the gold geochemistry.

About 60 hand samples were taken from the historic workings and associated dumps and several others were taken from vein float. The highest results returned 45 grams gold from a grab sample taken from a dump.

The company has completed geological mapping over the property. Outcrop is sparse, but Almaden was able to identify several areas of banded quartz-adularia veining and stockwork veining and one area of hydrothermal brecciation and associated silicification. These areas are said to be coincident with areas of anomalous soil geochemistry.

In June 1997, Almaden signed a letter of agreement with Eldorado Gold (ELD-T), whereby Almaden would receive 100,000 Eldorado shares in return for its 49% interest in the La Trinidad mine. Almaden also received a sliding-scale NSR of 1.5% to 2.5%, dependent on gold prices.

La Trinidad is a open-pit, heap-leach operation that holds a measured, indicated and inferred resource of 3.7 million tons grading 0.048 oz. gold per ton.

Almaden has about 12 million shares fully diluted and a working capital of $2.8 million.