Finca San Luis y Finca El Mango Concession for
Gold and Silver on the Guayabillas Vein System
Near Yuscaran, Honduras; MAPEME is 100% owned by: Inversiones, Minerales y Holdings, S.A. de C.V.
Both Companies referred to as “IMHI-MAPEME”
The IMHI-MAPEME mining Concessions in Honduras consist of 600 Hectares, explored with first option to develop metal concessions on two major vein systems. IMHI-MAPEME has researched an easy route through underground tunnel mining procedures to obtain a medium scale production of from 250 to 500tpd (Tonnes per day) 250tpd is projected to yield 12koz/year AuEq; 500tpd is projected to yield – 24koz/year AuEq Equivalent.
Proven Reserves with 12,985 meters of drilling completed in three major explorations:
Final results: 530,000 ounces total estimated gold equivalent.
The Yuscaran mining district is a well-known precious metals region located in SE Honduras. The area has seen intermittent exploitation for over 200 years from several high-grade gold-silver veins using underground mining techniques. Most of the mining has taken place on the Santa Gertrudis and Veta Grande Veins that are both located on the western side of the district. The district has produced gold and silver from a number of bonanza style high-grade veins since the mid 1700’s.
Funded between 1730 and 1740, the “Quemazones” mine, the “Guayabillas” mine and the “San Jose de Yuscaran” mine were the first to be exploited in 1744 and others that are deduced to be 32 in total were very active by 1762, according to reports received from the Major of the Tegucigalpa province, Mr. Nicolas de Busto y Bustamante, besides adds that there exist many other mines to be exploited which haven’t been due to money and hard work lacking.
The Yuscaran Mine was exploited by the Zucher brothers of Swiss origin and in the Yeguare Valley the wealthy Honduran family Fortín formed a company and acquired the veins that were abandoned by the French Leroux and Inquelemand, afterwards also took the San Antonio de Oriente mines.
More on the Guayabillas vein:
Excerpts from Honduras Silver Mining by Daniel Russell – Circa 1855; “The richness of an ore is governed by its chemical constitution, and can not exceed a certain average, unless, as in the Guayabillas mine, it contains threads of pure silver. Yuscaran, with nine valuable mines, all well situated and drained, and from one of which, the GUAYABILLAS, $500,000 was taken in four months during President Ferrara’s administration…. The mine yielded enormously. Nothing like that had ever been heard of before. The ore was often found coated over with threads of pure silver, and pieces yielded fifty per cent. Enormous ovens were constantly filled with it, from which streams of silver poured away day and night. Government, partially interested, gave us every help. All the proprietors and stockholders were enriched. No enterprise of industry ever yielded better or more constant returns. The fame of the mine extended even to England. The silver was shipped to that country through Belize. Here was a forcible illustration of the value of foreign labor, skill, and capital, in Honduras. I used to see the workmen paid off in lines, commencing at noon on Saturday, and not ending until dark…”
On January 21st 2019, the Instituto Hondureño de Geología y Minas "INHGEOMIN", the authority for mining development in Honduras, granted to the company Mango Propiedad Exploraciones y Minerales, S.A de C.V. “MAPEME, S.A. de C.V.” an Exploration Mining Right identified as “Finca San Luis y Finca El Mango” with an extension of 1000 Ha (10 sq. km), for a term of 5 years, which are extendable for other 5 year periods.
The mining right was finally registered at the Catastral Mining Registry on March 5th2019 with which the concession is official and active. In accordance with requirements, an exploration plan was submitted to INHGEOMINon on July 19, 2019.
See Mine location shown on maps at the end of document.
The project area is located 4 Km beyond the town of Yuscaran, El Paraiso Department, at a distance of 67 km from the capital city Tegucigalpa.
The municipality has an extension of 348.9 km2, the populations is above 13,000 habitants and its political division consists of 19 villages and 83 hamlets, the town is known also with the name of San Jose de Yuscaran, the name comes from the Mexican indigenous word “The place of house of flowers”; because of its beauty and historical richness, Yuscaran was declared National Monument of Honduras.
Yuscarán has a natural reserve composed by the El Fogón, El Volcan, and Montserrat hills.
The concession area is located in the Tertiary-Quaternary geological province, which runs along the southern coast of Central America; the province is characterized by active volcanic edifices and accumulations of volcanic material that have been erupted or reworked and then accumulated in local basins.
The Yuscaran area is predominantly covered by ignimbrites, tuffs, lahars and sediments, these last less common and of limited extension; rocks are varicolored including white, ochre, pink and red.
Textures of the deposits go from porfidic to afanitic to vitric.
Apparently underlying those deposits, there are andesite and basalt flows of porfidic to afanitic, vesicular, with plagioclase phenocrysts, olivine, pyroxene; matrix is glassy. Generally the unit is altered by hydrothermal activity and quartz veins. Above these volcanic units, there are other more recent of sedimentary nature, mostly product of erosion of those, and further deposition of material.
The Yuscaran District is characterized as a “low sulphidation”, volcanic-hosted, epithermal silver-gold vein district. The numerous mines in the area have historically produced silver and gold from bonanza-grade underground mines. The mineralization is structurally controlled and is related to extensional, normal faulting.
See maps at the end of document.
The project area is located at the intersection of at least two regional fault systems; one is the Nicaragua Depression Fault System, which runs in a WNW-ESE direction and basically controls the alignment of active volcanoes in the region, and also, known precious metals deposits.
The other fault system is the Guayape Fault System, which runs NE-SW, which is also known for hosting and controlling metal mineralizations.
Since 1985 there have been various exploration programs that have included geologic mapping, geophysics, trenching, drilling and metallurgical test work, and reserves estimations; these have been performed by the United Nations, Breakwater Resources and Gold-Ore, basically.
Between 1985 and 1989, the United Nations Revolving Fund for Natural Resources initiated a detailed exploration effort in the area and located the Guayabillas silver/gold quartz vein system. Core drilling of over 8,500 meters in 40 holes outlined a resource of 1,060,000 tonnes with an average grade estimated to be 10.9 grams per ton of gold equivalent (gold and silver).
The Guayabillas Zone was explored by the United Nations and Breakwater between 1985 and 1998 and has seen over 10,000 m of diamond drilling in 43 holes.
In November 1996, Breakwater Resources was awarded the 4,500 hectare Monserrat exploration permit. An exploration program was planned which would be built on the results of the previous work and initially focus on a 7 square kilometer area of significant epithermal-style mineralization and silicification which has potential for both large, low grade, bulk tonnage precious metal deposits as well as high grade vein systems similar to the partially delineated Guayabillas vein system.
Two modern exploration programs have been conducted on the property in the last 20 years. Both have focused on the Guayabillas Zone, an area that has not seen extensive mining. This east-west trending vein has been traced for 1000 m along strike and to depths exceeding 350 m from surface. A total of 10,400 m of core drilling has been completed in 43 boreholes.
Table 2 summarizes some of the significant drill intersections from the Guayabillas Vein and other proximal veins from both the United Nations and Breakwater drill programs; the gold equivalent figure was derived by Gold-Ore by using a silver:gold ratio of 70:1 and does not take into account metallurgical recoveries.
The majority of the drill intersections in the Guayabillas Zone come from the Guayabillas Vein that remains open to expansion at depth and along strike. The Branch Vein intersects the Guayabillas Vein on the western side of the zone and has been cut by several drill holes and remains open to expansion as well.
On October 2003, Gold-Ore Resources Ltd. announced that they had signed a Letter of Agreement with Breakwater Resources Ltd. with respect to the Monserrat Gold-Silver Property in Honduras whereby Gold-Ore can earn a 100% interest in the property subject to certain back-in rights retained by Breakwater. Some exploration activities and results are mentioned.
A systematic soil grid was established in December along 2 km of strike length of the Guayabillas. The program was successful in mapping the known veins and also located new target areas requiring additional follow up. Numerous soil samples returned values exceeding 1 g/t Au and 100 g/t Ag. Further soil sampling will be collected to further define the extent of the mineralized systems.
Geological mapping has shown that an intensely altered andesite volcanic unit hosts the vein arrays. These rocks are overlain by a younger rhyolite that is not mineralized and forms a cap rock. The veins are only visible where erosion has stripped away the cover unit and numerous veins have now been traced up to the rhyolite cover. This opens the possibility that many of the veins may be more extensive under the younger cap rocks.
Three high priority drill targets, Guayabillas, Hill 55, and Leonidas, were defined.
Previously, the mineralization within the Guayabillas zone was traced for 800 m, and was drill intersected in 23 holes. Results ranged from 0.25 g/t Au, 94.7 g/t Ag over 1.0 m to 13.8 g/t Au, 2003.2 g/t Ag over 5.0 m and averaged 4.36 g/t Au, 614.7 g/t Ag over 1.9 m.
Hill 55 was previously tested by two holes 50 m apart. The holes intersected 7.75 g/t Au, 453 g/t Ag over 2.07 m and 1.54 g/t Au, 374 g/t Ag over 2.0 m.
The Leonidas vein system was identified 200 m south of the main Guayabillas zone and was traced for 100 m and is open along strike in both directions. This system has not been drill tested.
The Company collected over 700 soil samples and 200 rock samples for fire assay and ICP analyses. Numerous old trenches were re-excavated and sampled. The old shallow underground workings that are abundant in the zone were all entered and sampled. A VLF resistivity survey was completed and a geologic map was compiled.
The diamond drill program on the Guayabillas silver/gold zone consisted in 15 holes, with a total of 2700 m drilled. The drill program was designed with three objectives that included testing areas between existing intersections in the main Guayabillas structure, testing for the east and west extensions of the mineralization along the structure, and testing other targets on the property. All drill holes were started using HQ diameter core, however, due to ground conditions most were reduced to NQ diameter core.
Drill holes 48 to 50 and 53 were completed on the western sector of the Guayabillas vein and holes 51 and 52 tested the nearby Branch vein. The four drill holes that tested the main Guayabillas structure from section 6950 m east to section 7450 m east, a distance of 500 m, all intersected the interpreted structure and returned good silver and gold values. Drill hole 60 is located in the eastern sector of the Guayabillas structure on section 7600 m east. The hole tested the area interpreted as the possible faulted down dip eastern extension of the Guayabillas structure, which intersected excellent gold and silver values as follows.
The holes on the Guayabillas vein were drilled on sections at 50 m spacing. The drilling confirmed the orientation of the system, however, it has also identified possible post-mineral faulting that was not previously recognized.
Other targets tested on the property did not return significant values. Figure 4 shows location of most drill holes of different drilling campaigns.
The drill campaigns completed in the Guayabillas Zone culminated in several historic reserve and resource calculations. The figures stated are not compliant to National Instrument 43-101, but were derived using standards appropriate at the time.
In 1989, the United Nations calculated a probable reserve using the following criteria:
The “Finca San Luis y Finca El Mango” exploration mining property has been shown to have high potential of hosting economic gold and silver deposits; there are many facts that support this, as lithology, structural geology, mining history, positive drilling intercepts, consistency and extension.
The property, with an extension of 3 square km, is located in a mining district where deposits are defined as epithermal gold-silver veins, volcanic-hosted, of low sulphidation type; numerous mines in the area have historically produced silver and gold from bonanza-grade underground mines.
Geologically, the project is located at the intersection of regional fault systems; one is WNW-ESE oriented and basically controls known precious metals deposits along Central America; the other runs NE-SW, which is also known for hosting and controlling metal mineral deposits. The mineralization at the district is structurally controlled and is related to extensional, normal faulting. The mineralized quartz veins typically are included in andesite and basalt flows, which is normally hydrothermally altered. Drilling has showed positive intervals that average 2.25 m width, 5.22 gpt Au, and 729 gpt Ag.
A Conservative estimated value of $33 Million, with a sensitivity NPV 8% based on the following market values:
- $1,600 Au & $18 Ag - $33 million
- $1,700 Au & $19 Ag - $37 million
- $1,800 Au & $20 Ag - $41 million
Based on all of the above, The Offer is:
Up to 73% ownership in three phases:
Phase One - Investment of US$1.75 million payable over 18 months as needed for 20%share ownership of the MAPEME mining company. (Investment to be used for payment of $250,000 to present shareholders, acquisition and leasing of surface properties for mine development, additional exploration to determine best access to known mineral deposits and payment to the government for the mine exploration concession, environmental, sociological and other related studies and governmental requirements. Time 18 to 30 months.)
Phase Two - Investment of US$4 to $5 million payable as expenditures occur over 2 years for 24% share ownership of the MAPEME mining company. (Investment to be used to dig tunnels to the point of extraction of precious metals, installation of a gold/silver mine & processing plant of at least 100 tonnes per day on the Property, acquisition and leasing of surface properties for mine development and payment to the government for the mine exploration concession, environmental, sociological and other related studies and governmental requirements.)
Phase Three – Investment approximately $2million until first metal sales occur through operation of the mine, for an additional 29% share ownership of the MAPEME mining company, Investor commits to fully develop and exploit all metal deposits in the concession and pay the original MAPEME share holders: a. for the life of the mine a 4% of Net Smelter Royalty (NSR) on all the silver and gold produced from the existing concessions; and b. pay current shareholders $1million within 120 days of invoicing first sale of metal.
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