met with project geos todayToday I met all three project geos for San Miguel with Paramount Gold, operator of the property and controling 70% interest. I was able to ask a few questions about their views on the upside exploration potential, and what their exploration model is. I will not recount all of what I heard but there were some points raised that I think are significant.
The 50,000m drill program that recently commenced will test more of the strike length for the main vein system, but they also have mapped out a number of other veins on the property now, and the geos know that one set of veins intersects the main vein at the location of an old mine that was producing very high grade gold ore. No drilling has targeted this zone yet, and the workings are flooded, but the company has reviewed some historical data from that mine and they believe that it could be a discovery area. This would also suggest a reason to be optimistic for numerous other points where veins intersect.
The geos also believe that there is potential for a wider halo of lower grade desseminated mineralization alongside the veins thats have already been reported. This would be similar to the mineralization observed at Ocampo, which is now a significant producing mine for Gammon Lake. There could also be some large tonnage stockwork zones near where veins intersect at depth.
The above targets are going to be tested in the current drill program. The company is also taking a regional perspective to see where the structural trends may continue onto other properties in close proximity. This is one of the reasons why they are interested in some of the property controlled by Garibaldi Resources (GGI.V) as a possible JV partner for a much larger area.
The takeover of Pamarejo by Coure D'Elene has increased the stakes for the explorers that are advancing large deposits. Other mid-tier players like Kinross and Agneco Eagle are also active in the area and will likely be looking to buy late stage projects. San Miguel is being advanced very aggressively by competent geos with a big budget to get the job done. I think the market value for this project is set to increase, and the potential for 300 million ounces of silver is legitimate. A 30% ownership for Tara could amount to a big asset.
cheers!
COACH247
Voluntary disclosure: I own shares in Tara and Garibaldi, and Paramount and Garibaldi are paid advertisers on my forum.