The Victoria gold-silver project is located 140 km south of the city of Chihuahua within the state of Chihuahua, Mexico. The property encompasses 11,718 hectares and is road accessible, 5 km from a major highway to the city of Chihuahua. The project occurs in a highly prospective region that hosts several significant deposits and historic gold-silver mining districts, including: the Parral silver district - 65 km to the south, the San Francisco del Oro and Santa Barbera mining complexes -- 75 km to the southwest, Penoles' Naica Mine -- 45 km to the northeast, and Levon Resources Cordero deposit -- 35 km to the southeast. Access to the property is very good using paved roads from the nearby city of Parral, and power lines and year round water cross the property.
The Victoria project is situated within the Central Mexican Silver Belt, a 900 km long metallogenic province defined by several important silver-gold mining districts, including the Penasquito, Camino Rojo, Pitarrilla, Parral, and Naica mining camps.
Victoria occurs within the Mesa Central, where fault bounded tectonic blocks of Mesozoic aged marine sedimentary and volcanic rocks form a series of northwest trending basins and mountain ranges. The Mesa Central is bounded to the west by the Sierra Madre Occidental, a northwest rending belt of Cenozoic aged felsic volcanic rocks which form a mountain range extending for up to 1,500 km through northern Mexico. To the east are the fold-belt mountain ranges of the Sierra Madre Oriental, which are comprised of the same Mesozoic aged limestones, siliciclastic sediments, and volcanics that underlie the Mesa Central. Numerous deposits occur within the Oriental and Mesa Central geologic provinces; including the important epithermal ore systems at Fresnillo, Santa Barbera, and San Francisco del Oro, as well as the bulk-tonnage disseminated deposits at Pitarilla, Penasquito, Cordero, and Camino Rojo.
Exploration at the project has focused on an outcropping gold-silver-arsenic system in the central portion of the current claim block. The area of interest is a strongly altered silica rib, variably exposed over a strike length of 700 m, where sampling of a surface trench completed by Serengeti assayed 2.0 g/t Au, 5.6 g/t Ag, >10,000 ppm As over 22 m.
Victoria was explored in the early 1980's by a Mexican company, who completed extensive trenching, rock sampling, and geological mapping. Two diamond drill holes were completed on one fence, intersecting strongly altered Caracol Formation siltstones with local quartz-calcite-barite vein breccias. Results of the drilling included a 4.7 m interval grading 1.2 g/t Au. No further work is known to have been completed at the project until Serengeti acquired the claims in 2009.
Since acquiring the project, Serengeti has completed geochemical and geophysical surveys in order to confirm the presence of gold-silver mineralization and define drill targets.
A surface trench completed by Serengeti across the strongly altered silica rib assayed 2.0 g/t Au, 5.6 g/t Ag, >10,000 ppm As over 22 m. A second trench 300 m to the north along strike assayed 0.32 g/t Au, 1.9 g/t Ag, and 4900 ppm As over 23.5 m. Serengeti also collected 21 surface grab samples averaging 1.3 g/t Au, 4.4 g/t Ag, and >10,000 ppm As with a high of 5.3 g/t Au from the main mineralized area.
An Induced Polarization (IP) survey completed in December of 2011 identified a strong, 50 to 200 meter wide, 2.2 kilometer long, open-ended, IP chargeability anomaly associated with the outcropping gold-silver mineralization.
A soil geochemical survey identified two strong arsenic-lead soil anomalies, which are coincident with this IP chargeability anomaly and outcropping gold-silver values. The first soil anomaly measures 1,400 m x 400 m and is centered over the outcropping mineralization; the second covers a 450 m x 450 m, entirely soil covered area in the southern portion of the open-ended IP chargeability anomaly. The soil anomalies were identified using a portable, hand-held XRF analyzer which can detect related elements such as arsenic and lead, but not generally gold and silver directly.
The strong IP and geochemical anomalies associated with the outcropping mineral system at Victoria indicate the potential presence of a significant epithermal gold system located under cover along strike, or at depth below the mineralized outcrops.
A reverse circulation (RC) drilling program was carried out in 2012 consisting of nineteen reverse circulation (RC) drill holes completed over the area to test the coincident IP chargeability, geochemical, and geological targets. All the holes were drilled at -60 degrees on a 065 degree azimuth (except V12-17 which was -60 at 110) and the average hole depth was about 100m. The total meterage drilled was 1894.5m.The main chargeability anomaly was tested by fences with two to three holes per fence, while the northern and southern extensions were tested with single holes. The entire length of each drill hole was sampled and sent to the lab for analyses.
Summary results are provided in the table below.
|Victoria RC Drill Holes V01 to V19 Significant Results|
|Hole||From (m)||To (m)||Interval (m)||Gold (g/t)||Silver (g/t)||Zinc (%)||Azimuth/Dip|
|V02||97.5||109.5 (EOH)||12.0||0.54||12.7||2.07||065˚ /-60˚|
|and 108.0||109.5 (EOH)||1.5||2.20||3.60||1.81|
|Holes V5, 7, 8, 11, 15, 18, 19 did not return any significant intervals|
Wide zones of disseminated pyrite were noted surrounding the mineralized intervals and correspond well with the strong chargeability anomaly. Mineralized intervals were associated with strong silicification and visible pyrite and sphalerite and variable amounts of arsenopyrite, barite, epidote and oxides of arsenic.
These positive results confirm the presence of a large gold-silver-zinc-bearing mineral system at Victoria that remains open along strike and to depth. The location of this mineralized system appears related to a regional structural break identified by the airborne magnetics which is at least 12km long, with much of it lying beneath shallow cover. Considering these encouraging first pass drill results and the strong associated geophysical and geochemical anomaly, follow-up drilling is recommended.