The San Martin project is located 50 km east of the City of Querétaro in Querétaro State, and about 250km northwest of Mexico City. High grade mineralization was discovered at San Martin in the 18th Century, and is reported to have been mined over a period of 40 years; however, no production records exist. Between 1900 and 1924, an estimated 250,000 tonnes grading 15 g Au/t and 100 g Ag/t was reportedly mined.

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In 1982, the area was declared a National Reserve; however, by 1986, Luismin had reached an agreement to conduct exploration/exploitation in the area. Mining began in 1993 at 300 tpd and the production increased on a yearly basis to the present rate of 747 tpd with the capacity of 900 tpd. Exploration has been concentrated along the NE trending breccia zone however evidence of a northerly trend in area 30 leads us to suspect possible other structures.
Mineralization is generally made up of breccia that commonly is concordant with a limestone/shale contact (in the San Martin and San Jose areas) which forms the relatively steeply dipping tronco deposits, these troncos contact the younger volcanic flows (dacite and ignimbrite) where the have formed the more horizontal manto portions of the deposit. At depth in the San Martin area the Guadalupe vein was found in 2007. This vein is sub parallel with the San Martin segment is more vein like and somewhat higher grade than the San Martin structure at the same elevation. Drilling and lateral development are being used to prove reserves in this vein whhich indicatess the potential for other similar structures.
The mineralized economic breccia grades from 30 g Ag/t to 250 g Ag/t together with 2.0 g Au/t to 30 g Au/t over widths that vary from 1.0 to 17.0 m but average 4.0 m. Mineralization occurs in Upper Cretaceous black limestone and calcareous shales of the Soyatal Mexcala Formation as electrum, and silver selenide minerals principally associated with quartz and to a lesser degree with calcite. The deposit is an epithermal, probably high sulphidation precious metal (Ag-Au) type (metal ratio Au:Ag at 1:10), related to a Tertiary dacitic/andesitic intrusive dome.
Proven and Probable Mineral Reserves - San Martin*
The total Proven and Probable Mineral Reserves estimated as of July 01, 2009 at San Martin are 1.03 million tonnes at a grade of 43 g Ag/t and 3.66 g Au/t as follows:
|
Tonnes |
g Ag/t |
g Au/t |
Proven Reserves |
301,069 |
15 |
2.42 |
Probable Reserves |
461,867 |
38 |
3.38 |
- Reserves were estimated by Minera de la Pena Bernal July 1, 2009.
- Cutoff grades based on total operating cost were US$34.33/tonne.
- All reserves are diluted by 10%
- For widths greater than 5m a mining recovery factor of 85% has been applied.
- The tonnage factor is 2.55 tonnes per cubic metre.
- Cutoff values are calculated at a silver price of US$10.00 per troy ounce and US$700 per troy ounce for gold.
- Numbers may not add up due to rounding.
- San Martin tronco has area expanded to reflect average 55 degree dip
- Blocks in Guadalupe vein had high gold values cut to 20 g/tonne
Inferred Mineral Resources by area at the San Martin mine property as of July 1, 2009 and total about 1.57 million tonnes at an approximate grade of 40 g Ag/t and 3.65 g Au/t.
* Excerpt from the San Martin Technical report titled 'RESERVES AND RESOURCES IN THE SAN MARTIN MINE, MEXICO AS OF JULY 1, 2009', August 29, 2009.
Click here to view a Technical Review of the San Martin Project, Mexico July 01, 2009 (PDF 4.7MB)