Mr. Kenneth MacLeod reports
SONORO GOLD DRILLS 27.44 M OF 1.17 G/T AU NEAR SURFACE AT CERRO CALICHE
Sonoro Gold Corp. has released continuing favourable results from eight reverse circulation drill holes at the premier Buena Suerte and Japoneses gold-mineralized zones located in the central region of the company's Cerro Caliche gold project in Sonora, Mexico.
Buena Suerte: zone extended and widened, and remains open along strike
At Buena Suerte, five drill holes extended the zone 100 metres to the northwest and 50 m to the southeast, increasing the total length along strike to approximately 600 m:
- SCR-141 intercepted 3.05 m averaging 1.479 grams per tonne Au, including 1.52 m averaging 2.591 g/t Au.
- SCR-142 intercepted 7.62 m averaging 1.322 g/t Au and 12.19 m averaging 0.965 g/t Au.
- SCR-143 intercepted 12.19 m averaging 0.687 g/t Au, including 1.52 m averaging 1.741 g/t Au.
- SCR-148 intercepted 27.44 m averaging 1.17 g/t Au, including 3.05 m averaging 4.696 g/t Au.
- SCR-149 intercepted 12.19 m averaging 0.498 g/t Au from a depth of 4.57 m.
In the southeastern extension of the zone, drill holes SCR-141, SCR-142 and SCR-143 demonstrated an increase in the lateral width of the zone to approximately 150 m with at least four different segments. In the northwestern extension, SCR-148 and SCR-149 have extended the zone approximately 100 m to the northwest from where, as previously reported on Nov. 24, 2020, SCR-109 intercepted 45.72 m averaging 0.97 g/t Au and four g/t Ag. The Buena Suerte mineralized gold zone follows the Cucurpe district's predominant northwesterly trend and runs in parallel along the western boundary of the larger Japoneses mineralized gold zone.
The geology of the main extent of both the Buena Suerte and Japoneses gold zones consists of strongly fractured Mesozoic clastic sedimentary rocks, quartzite and fine-grained shale units. Parts of the Buena Suerte zone are crosscut by fractured and veined rhyolitic intrusives possibly related to the Oligocene rhyolite flow dome unit that forms the crest of the Cerro Caliche peak located approximately two kilometres to the northeast. The crest of the Cerro Caliche peak shows strong silicification with moderate argillic alteration and quartz veining with gold-anomalous surface outcrops. Rock textures and mineralization sampled on surface show this area to be within the low sulphidation epithermal system's ideal boiling zone, adding to its potential for future targeting.
Mel Herdrick, Sonoro's vice-president of exploration, commented: "The good gold grades and wide intervals returned from the latest drilling results continue to add to the Buena Suerte mineralized zone and show that it has now become a large area with significant resource potential. I look forward to this zone being added to the next resource study, which is to be conducted in the coming months."
CERRO CALICHE PROJECT, HOLES COMPOSITES WITH CUT-OFF 0.15 AU G/T
From To Interval Au Ag AuEq
Hole Target (m) (m) (m) g/t g/t g/t
SCR-141 Buena Suerte 3.05 10.67 7.62 0.500 13.0 0.69
and 13.72 22.86 9.14 0.210 1.50 0.23
and 68.58 71.63 3.05 1.479 0.80 1.49
includes 68.58 70.10 1.52 2.591 0.80 2.60
and 94.49 97.54 3.05 0.286 0.55 0.29
and 103.63 121.92 18.29 0.337 4.56 0.40
and 137.16 147.83 10.67 0.304 0.70 0.31
SCR-142 Buena Suerte 0.00 4.57 4.57 0.625 10.90 0.78
includes 1.52 3.05 1.53 1.418 19.80 1.70
and 9.14 15.24 6.10 0.401 2.10 0.43
and 50.29 57.91 7.62 1.322 18.80 1.59
includes 54.86 57.91 3.05 2.150 38.60 2.70
and 62.48 67.06 4.58 0.296 12.70 0.48
and 74.68 86.87 12.19 0.965 19.50 1.24
includes 77.72 80.77 3.05 2.650 69.90 3.65
and 103.63 111.25 7.62 0.185 6.70 0.28
SCR-143 Buena Suerte 28.96 32.00 3.04 0.398 23.60 0.74
and 41.15 44.20 3.05 1.015 41.0 1.60
includes 41.15 42.67 1.52 1.798 71.90 2.83
and 54.86 57.91 3.05 0.202 0.40 0.21
and 74.68 77.72 3.04 0.468 3.40 0.52
and 88.39 92.96 4.57 0.480 1.50 0.50
and 99.06 111.25 12.19 0.687 2.10 0.72
includes 99.06 100.58 1.52 1.741 10.90 1.90
SCR-145 Japoneses
and 59.44 62.48 3.04 0.206 2.00 0.23
and 65.53 88.39 22.86 0.568 8.40 0.69
and 91.44 102.11 10.67 0.449 4.20 0.51
and 112.78 117.35 4.57 0.166 0.70 0.18
and 138.68 144.78 6.10 0.209 0.80 0.22
SCR-146 Japoneses 21.34 25.91 4.57 0.238 9.40 0.37
and 67.06 80.77 13.71 0.599 8.00 0.71
includes 77.72 79.25 1.53 2.479 43.8 3.11
and 83.82 86.87 3.05 0.279 0.20 0.28
and 94.49 103.63 9.14 0.261 0.60 0.27
SCR-147 Japoneses
and 77.72 88.39 10.67 0.405 4.30 0.47
and 128.02 140.21 12.19 0.361 0.50 0.37
SCR-148 Buena Suerte 1.52 6.10 4.58 0.409 0.30 0.41
and 16.76 44.20 27.44 1.170 2.40 1.20
includes 25.91 27.43 1.52 3.101 2.20 3.13
includes 39.62 42.67 3.05 4.696 3.40 4.75
SCR-149 Buena Suerte 4.57 16.76 12.19 0.498 0.60 0.51
Japoneses zone: drill results further define northwestern extent of the gold mineralization
At Japoneses, three infill RC holes, SCR-145, SCR-146 and SCR-147, located in the northern portion of the zone, were drilled at a 45-degree angle on a 225-degree azimuth. All three drill holes, which are outside the company's pit-constrained National Instrument 43-101 inferred resource estimate reported in 2019, represent mineralized intervals that help to define the northwestern part of the Japoneses mineralized zone. The topographic location of these drill holes is on the north-facing canyon slope, where the inclusion of the new mineralized material may be incorporated into the proposed conceptual plan for a heap leach mine operation (HLMO) for the main body of the Japoneses zone to the southeast.
Additional assay results and recommencement of drilling
Assay results from six RC holes and nine core holes completed in December, 2020, are expected to be announced within two weeks. These include two core holes from Cabeza Blanca, one core hole from the neighbouring Guadalupe zone, and four core holes from Veta de Oro, where a newly discovered higher-grade zone announced on Dec. 8, 2020, extends one km northwest to the El Rincon vein zone. Eight RC holes include four from the Japoneses zone and two from the Buena Vista zone. The two remaining RC hole results investigate shallow gold mineralization at the El Rincon/Veta de Oro gold mineralized zone as it continues for 500 m to the southeast along a zone of vein stockwork to the Abejas zone.
Drilling is planned to restart on Jan. 5, 2021, with an initial focus on segments of the Veta de Oro vein trend and its extension into El Rincon vein zone.
To date, an air-track (AT) drilling program has resulted in the completion of 703.5 m of drilling in 27 drill holes, averaging 26 m in depth per hole. The AT holes are located mainly in the Guadalupe vein area, parallel to the western boundary of the Cabeza Blanca zone, where it crosses several access-road cuts. The samples obtained from AT drilling are being assayed at an independent laboratory. AT drilling will also be utilized this month for condemnation purposes in areas that have been identified as possible sites for the proposed mine's heap leach pad and the disposal site for what is predominantly oxide waste rock.
A strong case for a larger HLMO following an exceptionally productive second half of 2020
The latest drill results and the company's plan to increase the conceptual throughput for a proposed mine plan up to 20,000 tonnes per day are the culmination of what management considers an exceptionally productive second half of 2020. This achievement was in part the consequence of a comprehensive geological review and planning based on the Cerro Caliche project's extensive data set. The results of the review followed by the proposed drill campaign and the mine proposal enabled the successful closing of an $8-million financing, supported by Palisades Gold Corp. a leading Canadian merchant bank specializing in the resource sector.
The financing was immediately followed by the execution of a two-pronged drilling campaign. The first focused on exploring and developing the current shallow oxide gold zones, while the second tested multiple higher-risk, potential high-grade gold targets. Details regarding this initial campaign can be viewed on the Cerro Caliche project page of the company's website. Based on the subsequent flow of positive drill results, Sonoro is now examining a materially larger mine development proposal with a conceptual throughput of up to 20,000 tpd. The proposed design of a larger operation is a consequence of the work of Sonoro's technical team in Mexico, which has kept the project on time and within budget.
Kenneth MacLeod, Sonoro's president and chief executive officer, stated: "With regard to these achievements, Sonoro's executive would like to specifically commend the efforts of our team in Mexico, most notably VP exploration, Mel Herdrick, and VP operations, Jorge Diaz. Mr. Herdrick has been instrumental in the success of Sonoro's exploration program. Our HLMO proposal is under the direction of Mr. Diaz, a Glamis Gold alumnus, who has directed the development and operation of heap leach mines in the region since the 1980s, including, more recently, Alamos Gold's highly successful Mulatos, which produced its two-millionth ounce of gold in 2019. He is the principal overseer of Sonoro's Mexico-based mine development team and has done an exceptional job working to ensure that a significant gold mining operation at Cerro Caliche can become a reality."
Outlook 2021: independent metallurgical study, updated resource estimate and PEA scheduled for completion in Q2 2021
During 2019, Sonoro conducted internal metallurgical column leach tests on the identified near-surface mineralization. In November, 2020, the company engaged McClelland Laboratories to conduct independent metallurgical testing, which the company expects will confirm its preliminary in-house test results, while also testing deeper mineralized material. On Dec. 8, Sonoro announced that Toronto-based Micon International Ltd. had been contracted to complete an updated mineral resource estimate and Ontario-based D.E.N.M. Engineering Ltd. had been contracted to prepare an NI 43-101 compliant preliminary economic assessment based on the anticipated McClelland Laboratories and Micon reports.
The company's 2020 drilling campaign was, in part, designed to increase drilling density to support an increase in the existing NI 43-101 compliant, 201,000-ounce Au inferred resource estimate (filed on SEDAR on July 26, 2019). Furthermore, positive drilling results have included the discovery and expansion of new and previously identified mineralized zones as well as high-grade intercepts reported in stepout holes. For further information, please refer to Sonoro's news releases dated Nov. 4 and 24, 2020, and Dec. 8 and 18, 2020.
The resource estimate and the metallurgical tests are expected to be completed in the second quarter of 2021 with D.E.N.M. completing the PEA shortly afterward. These independent consultants will address key material conditions that must be met for the company to accomplish its goal of commencing gold production as early as December, 2021. These conditions include the satisfactory completion of the current metallurgical testing, an updated resource estimate and a favourable PEA. In addition, advancement of the project is also dependent on the company obtaining the required environmental permitting and securing project financing.
Drilling campaigns continue at Cerro Caliche
Sonoro's campaign of higher-risk, high-grade core exploration drilling, together with low-risk RC drilling of the 17 shallow gold mineralization zones, are to continue until May, 2021. The core drilling of the high-grade targets will average approximately 1,200 m per month while the planned stepout and infill RC drilling of the gold mineralization zones is expected to average slightly less than 3,000 m per month. The company's focus is then expected to shift to the construction of the proposed HLMO. The company plans to continue RC drilling during and after construction, assuming satisfaction of the conditions discussed herein for the proposed HLMO, to enlarge the estimated project resources with revenues from production financing continuing drilling activities. For an overview of some of the gold veins and mineralization within the Cerro Caliche concession, see the presentations available under the investors/presentations tab on the company's website.
High-grade targets potentially within the lower boundaries of future open-pit mining
Initial core drilling results at Cerro Caliche have established the probable boundaries of Cerro Caliche's epithermal, ideal boiling zone, which is roughly defined as the paleo-elevation's most favourable for the deposition of high-grade gold. These results have established that the boiling zone is higher (shallower) in the system than the elevations of several of the earlier high-grade targets. It has also shown the rock units to have tilted approximately 20 degrees since they were formed. The company believes this means that the higher-grade potential likely is much closer to and, in some cases, adjacent to the shallow oxide gold mineralization. While the viability of the proposed development at Cerro Caliche has yet to be confirmed, any high-grade gold zones, which are found to be within the lower boundaries of future low-cost bulk mining, are likely to positively impact on the Cerro Caliche's economics.
Upcoming key corporate milestones in 2021
Company management is confident that the upcoming technical reports will detail substantial increases in both the current inferred resource's size and grade, while noting that this is being accomplished with less than 20 per cent of the Cerro Caliche's mapped gold zones having been drilled. In addition to the potential for a high-grade gold discovery or additional substantial increases in the shallow inferred gold resource, the release of both the Cerro Caliche's metallurgical test results and the updated resource technical report, together with the contemplated PEA, are key milestones for the company and as such are also significant potential share price catalysts. Considerable work has already been carried out and continues to be done, which underpins management's expectation that the PEA will be positive. As this occurs, the methodical work by Mr. Diaz and the rest of the Sonoro team is advancing the mine development proposal and, in doing so, brings Sonoro closer to its goal of becoming a gold producer by as early as the end of 2021.
John Darch, Sonoro's chairman, stated: "Two thousand twenty was a year where the Sonoro team turned adversity into a year of remarkable achievements. The first half was spent regrouping as we analyzed the Cerro Caliche's extensive data set and created an alternate Mexico-centric strategy, which, in our view, became mandatory when the seriousness of the COVID pandemic was apparent. Since then, our team in Mexico has performed superbly, both in terms of exploration and development, and, in doing so, has helped to set the table for an even more productive and exciting 2021 as we continue our effort to transform Sonoro into a gold producer."
Quality assurance/quality control measures and analytical procedures
Drill samples are collected with an airstream cyclone and passed into a splitter that divides each sample into quarters. The quartered samples are then bagged and sealed with identification. The sample group has blanks, standards and duplicates inserted into the sample stream.
Bureau Veritas (BV) collects the samples and transports them directly to the preparation laboratory in Hermosillo, Sonora. At the laboratory, part of each sample is reduced through crushing, splitting and pulverization. About 200 grams are sent by BV to its Vancouver, B.C., laboratory and dissolved in aqua regia for multielement ICP analysis, including silver. Of these samples, 30 grams undergo fire assay in Hermosillo for gold by reducing the fire assay to a concentrated button of material that is dissolved in acids and the gold content determined by atomic absorption.
No QA/QC issues were noted with the results received from either laboratory.
Geologic description
Cerro Caliche is located 45 km east-southeast of Magdalena de Kino in the Cucurpe-Sonora megadistrict of Sonora, Mexico. Multiple historic underground mines were developed in the concession, including Cabeza Blanca, Los Cuervos, Japoneses, Las Abejas, Boluditos, El Colorado, Veta de Oro and Espanola. Mineralization types of the Cucurpe-Sonora megadistrict include variants of epithermal low-sulphidation veins and related mineralized dikes and associated volcanic domes. Local altered felsic dikes cut the mineralized metasedimentary rock units and may be associated with mineralization both in the dikes and metasedimentary rocks.
Host rocks include Jurassic-Cretaceous metasedimentary rock units, including argillite, shale, quartzite, limestone, quartz pebble conglomerate and andesite. Younger intrusive rock consisting of medium coarse-grained granodiorite-granite is present in the westerly parts of the concessions near the historic Cabeza Blanca mine. It is apparent that veining cuts and pervasively alters the intrusive stock. Rhyolite occurs in irregular bodies distributed in higher elevations in the northerly part of the concession, including the Rincon area, where it occurs as flows, sills, dikes and rhyolite domes. Part of the rhyolite is mineralized and appears to be related to epithermal gold mineralization throughout the property.
Qualified person statement
Stephen Kenwood, professional geoscientist, a director of Sonoro, is a qualified person within the context of National Instrument 43-101 and has read and approved this news release. Readers are cautioned that the presence of mineralization on historic mines adjacent to or on Cerro Caliche is not necessarily indicative of gold mineralization in the concessions held by the company.
About Sonoro Gold Corp.
Sonoro Gold is an exploration and development company with a portfolio of exploration-stage precious metal properties in Sonora state, Mexico. The company has highly experienced operational and management teams with proven records for the discovery and development of natural resource deposits.
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