Mexican Hat, Arizona USA
Mexican Hat is a low sulphidation, epithermal gold deposit in Tertiary volcanic rocks. Similar deposits within the same basin and range province in Nevada, such as Round Mountain and the Midas Deposit, host many million ounces of gold. Since acquiring the property, GMV has increased its land position significantly to 4,800 acres. The property is now unfolding with multiple target zones.
Mexican Hat Highlights
- Located in Cochise County, Arizona - 72 miles ESE of Tucson
- Mexican Hat claims and exploration licenses cover approximately 4,800 acres and form one of the most promising gold development opportunities in the western United States
- GMV has a 100% interest
- Extensive past exploration by Placer Dome (USA)
- Over 180 drill holes from past programs (approx. 22,000m)
- Preliminary metallurgical studies demonstrate recoveries ranging from 88.4% to 96%
- 2015 Column Leach Metallurgical results reconfirmed gold recoveries of 96.6% and 91.6%
The Mexican Hat is a unique feature located on the west side of the property that rises about 150m above ground level at an elevation of approximately 1,585m.
The property is a low sulphidation, epithermal gold system with good size potential, access and metallurgy. The property lies within the southeastern portion of the Basin and Range Province, a physiographic domain encompassing much of Nevada, southeast California, southern Arizona and part of New Mexico. Mineralization appears structurally controlled by fault-fracture (joint) zones and related breccias, commonly encountered in alkaline volcanic rocks. Gold has manifest itself in the free form within fractures that are typically intensely hematite altered. Hematized fractures have been found in all rock types found on the property. All units within the volcanic package may act as a possible gold mineral host.
No sulphides have been encountered on the property to date.
The geology and the stratigraphy of Mexican Hat consists of a Tertiary volcanic assemblage with main lithologies, occurring from oldest to youngest, that are described as a basal rhyolite breccia overlain by a trachy-basalt, a trachy-andesite, latite and an upper rhyolite tuff.
Recent Work Programs
Results from recent drilling at the Mexican Hat were reported on February 1, 2017, February 21, 2017, February 27, 2017 with final assays for the entire step-out drill campaign released on March 28, 2017. Headline intersections include 0.92 gpt over 33.5 m (22.5 m true) in the H Zone from GMV 2016-11, 0.74 gpt over 21.3 m (15.4 m true) in the A Zone from GMV 2016-8, 2.03 gpt over 9.1 m (6.4 m true) in the AN Zone from GMV 2016-9 and 0.56 gpt over 21.3 m (true width) in the VF Zone from GMV 2016-14. Known mineralization has now been extended by another 420 meters. The technical team is currently developing a Mine Plan of Operation while undertaking metallurgical testing, data compilation, and LIDAR and geophysical surveys.
On Dec 6th, 2016, GMV announced a new target known as the Hernandez Hill target, located approximately 500 meters northeast of the existing Mexican Hat gold resource. Based on soil geochemistry and recent mapping, it is believed that the Hernandez Hill target may be the top of an epithermal precious metal deposit. The distribution of anomalous pathfinder elements is characteristic of the upper levels of gold and silver bearing epithermal systems that are common in the Basin and Range of the southwestern US. This is a new deposit style at Mexican Hat and represents a strong and compelling drill target. Drilling at the Hernandez Hill target has now been completed with results pending.
The property consists of unpatented lode mining claims and State of Arizona Mineral Exploration Permits.
On May 8, 2017, GMV announced that Zonge International Inc. completed extensive geophysical surveys for GMV Minerals. The primary objective of the surveys was to collect data that could be used to create electrical resistivity models that would guide mineral prospecting efforts and to identify drill targets in the area.
Highlights of the summary include:
- Mexican Hat mineralization correlates well with a magnetic low and resistivity low (weak conductors) and has traced mineralization to depths of 500 meters for resistivity anomalies. Currently, GMV has drill data to a depth of only 200 meters utilized within its current NI 43-101 report.
- Overburden cover is less than (<) 50 meters deep across the survey area. This has been confirmed by past drilling.
- Additional new target zones have been identified demonstrating low resistivity occurrences 100 meters south of Hernandez Hill (associated with an isolated magnetic low) and over the northern 800 meters to 1,000 meters on all three test lines, with evidence of low magnetic response over portions of this anomaly.
Location and Access
The property is located in the southeastern part of the State of Arizona, and can be accessed from Old Ghost Town Road. Arizona, a mining-friendly state in the southwest United States, is home to many large mines and development projects including copper, gold, uranium, coal, and copper/moly mines. Mining had a $4.29 billion impact on Arizona’s economy in 2014, with 66% of the nation’s copper coming from the state.
The Mexican Hat Property hosts an Inferred Mineral Resource of 32,876,000 tonnes grading 0.616 grams of gold per tonne hosting 651,000 ounces of gold, using a 20 gpt capping grade and a 0.20 gpt cut-off grade (See Aug 29, 2018 NI 43-101 Technical Report, SEDAR)”
Au Cut-off (g/t)
Au Grade (g/t)
- The Mineral Resource Estimate has been constrained to a preliminary optimized pit shell, using the following parameters: SG = 2.57 gm/cc based on testwork, mining costs = $1.50/tonne, mining recovery = 98%, mining dilution = 2%, process cost = $3.25 per tonne, G&A = $0.55 per tonne, gold price = $1,375 per troy ounce, throughput at 15,000 tpd., discount rate = 5%. A cost of $0.03 was added per bench to the mining cost below the existing level surface.
- A top cut of 32 gpt gold is applied to all zones except Zone 6 which has a top cut of 50 gpt gold.
- Mineral Resources have been calculated using the Inverse Distance Squared method
- Mineral Resources constrained to optimized pit shells are not mineral reserves and do not have demonstrated economic viability.
- Conforms to NI 43-101, Companion Policy 43-101CP, and the CIM Definition Standards for Mineral Resources and Mineral Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
- All numbers are rounded. Overall numbers may not be exact due to rounding.
- There are no known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources
Grades, tonnes, grams and ounces are rounded and totals may not add up. A gold price of US$1,600 is assumed.
Note that mineralization is open in all directions.
Oblique west-facing image of the resource blocks within selected solids presented to show the orientation of blocks relative to the solids models.
Further back in history, the area around and immediately south of the project area underwent mining activity during the 16th or 17th century, in particular for the turquoise. Spanish explorers also prospected the area targeting gold.GMV Minerals acquired 100% of the leasehold interest in the Mexican Hat Property by way of an assignment agreement with the previous lessee and the underlying claim owner. The Mexican Hat property received considerable exploration between 1989 and 2004, most notably by Placer Dome (USA) between the years 1989-1992 when they drilled 137 holes totaling 18,939 metres (62,120 ft). Overall there are more than 180 drill holes in historical data associated with the property.
Location of the Basin and Range physiographic domain and five subdomains, from www.geomaps.wr.usgs.gov/parks/province. 2014. Red star marks Mexican Hat location.
Bulk Sample Recoveries
GMV has undertaken an 18 tonne bulk sample as part of 2016’s development program at Mexican Hat. A bedrock exposure of low-grade material has been selected as appropriate to test the Run of Mine (ROM) potential. The broken bedrock has been shipped to a certified metallurgical facility as ROM material for a leach recovery test in 1.2 m diameter by 6m columns on -150 mm (-6”) material. In addition, other samples will be collected from drill core and exposures on the property to further assess other significant rock types. Together, this work will assist planning for the development of a Mine Plan of Operation.
Three bottle roll tests from the 18 tonne sample returned a combined average better than 91% recovery for gold.
The Towns of Willcox, Benson and Sierra Vista are the supply centers of Cochise County, as well as distribution hubs for agricultural, tourism and mineral industries. These towns have the necessary resources to support mineral exploration such as accommodations, communications, equipment and supplies, plus an available, knowledgeable work force.
Water may be obtained from privately-owned and operated wells in the vicinity. Expanded operations will likely require purpose-built access to subsurface waters.
The Courtland-Pearce, Ghost Town Trail Road extends along the western project area along with an active power line. Storage facilities such as tailings, waste, potential heap leach areas and processing plant sites may be acquired either through the State, private land holder or BLM.
Net Smelter Royalty
The Mexican Hat Property is subject to a 3% net smelter returns royalty (NSR Royalty) in favour of Manual R. Hernandez, created pursuant to the terms of the Lease. The NSR Royalty is subject to a buyback right pursuant to which 1.5% of the NSR Royalty can be purchased by GMV in consideration of US$1,500,000. Pursuant to the terms of the Lease, the Company will be required to make advance royalty payments to Hernandez in the amount of US$4,500, payable quarterly. In addition, the Company will be required to undertake sufficient assessment work, make annual filings, and pay taxes, fees and rents as required to maintain the Mexican Hat Property in good standing.
Dr. D.R. Webb, Ph.D., P.Geol. P.Eng. is the Qualified Person within the meaning of NI 43-101 and has reviewed and approved the technical content of this website.