BC’s Untapped Gold Resource Ready to be Explored

San Marco Resources Inc. (TSX-V: SMN, OTC: SMREF, Forum) is a Canadian mineral exploration Company that is actively pursuing acquisitions of world class gold, silver, zinc and copper projects, with a focus on precious metals in mining friendly jurisdictions.

Headquartered in Vancouver, the Company's principal focus and chief asset is the recently optioned Buck Property in north-central British Columbia. It has large tonnage gold-silver-zinc potential in a mining-friendly region that includes many former and current operating mines.

Founded in September 2005, San Marco had been exploring assets in Mexico over the past decade and decided to shift to a Canadian project that showed great promise. An initial investigation of some available projects came to light and, when it came available through options, the Buck property had the most potential.


Key highlights of the Buck Project:

• Promising historic data

• Has not been explored using the current geological model

• Excellent local utilities and infrastructure

• Year-round exploration potential

• Mining friendly jurisdiction

Over the last 50 years, the Buck property had several million dollars worth of exploratory work done by various junior and senior companies. San Marco’s leadership looked at this information and thought there was significant opportunity offered within the land.

There was a lot of historical information that the Company could use but didn’t have to pay for. Upon a fresh analysis under a different point of view, the leadership team looked through a different geological model from what previous operators had followed - a breccia/diatreme model - and found something engaging.

Going through this half-century of data, a new breccia model was conceived that shows widespread mineralization with reasonable grade and scale.

Scale is the key here. San Marco found a surface footprint that boasts a very large mineralized footprint and it is believed that with this data, it has a solid head start to get into this project with its first drill program.


The Buck Property at a glance:

100% optioned under San Marco Resources, this 15,000-hectare property near Houston, BC has a bulk tonnage gold/silver exploration target similar to several multi-million-ounce gold deposits found worldwide. It is located in close proximity to Centerra Gold’s Equity Silver and Endako mines, as well as Imperial Metals’ Huckleberry mine.

The surface footprint of the target area is that of a large, altered breccia system, with gold and silver mineralization widespread throughout and open in all directions. Most drill holes at Buck are drilled to less than 175 metres in length, but also ending in gold and silver mineralization. This means the system was not tested to depth, it clearly remains open. There are also multiple target areas across the property that have been essentially unexplored.


A second look can often pay off:

To borrow a baseball analogy, San Marco Resources is starting at second base and ready to take third on a home run. The model the Company is working with has significant size to it and is believed that this first drill program should prove to be successful in yielding positive results.

The mineralized footprint in the Buck target area is several hundred metres across, defined by numerous historic drillholes. Drill logs outline a highly altered breccia system with widespread gold, silver and zinc mineralization contained in high-grade sub-sections. These characteristics are indicative of a diatreme “breccia pipe” environment, which the San Marco team has started investigating.


(Image via San Marco Resources Inc.)

How did this resource go untapped for so long? Previous companies who had possession of the property were relying on different geologic models. San Marco’s team re-evaluated the data and came up with a new model. After relogging a historic drill hole, they discovered significant breccia in what had been previously logged as porphyry. From this fresh point of view, a different picture emerged and now the Company is targeting what it believes to be a very large bulk-tonnage mineralized system.

(Image via San Marco Resources Inc.)


What's next:

The Phase One exploration program will begin soon. In an interview with Stockhouse Editorial, Company leadership stated that drilling will likely commence within the next few weeks as crews mobilize to get on-site.

As referenced earlier, one of the key differentiators for this project is its solid infrastructure and road access. Working in central British Columbia offers easier road access compared to other projects located within BC’s “golden triangle”, which will in turn, parlay into a better economic picture for the Company. The community is a resource-based one with people who are keen to work.

The Buck property is close to major roads and infrastructure, and San Marco intends to find operating it that much easier. The topography is relatively flat, not as mountainous as other areas of the province and the snow depths won’t hinder drill rigs from entering the property. This first drill program is targeting a March start, which would be considered a treacherous time to initiate such an undertaking elsewhere in BC's rugged terrain.

The area has also been receptive to San Marco’s work. Executive Director Robert Willis added that the process to get to a point where they are drilling, including permitting, went smoothly, with their drill permit being granted in just under five months. The Company is going into this on an even keel and keeping a positive human resource relationship with support groups in the area. There is interest from local groups, and San Marco is using a local drilling company based in Smithers who has previously drilled the property.



(Image via San Marco Resources Inc.)

Moving ahead:

• Expect good overall metallurgical response

• Investigate intensity of oxidation

• Explore for other mineral potential within claim group and surrounding area

Private placement:

In February 2020; San Marco announced that it had closed its over-subscribed non-brokered private placement by raising nearly $785,00.00 (CAD). The proceeds of this placement will go toward exploration at the Buck Property. This placement had initially been set for $500,000.

Closing higher than what was asked means that the word is out on what the Buck property could mean. The potential size to be unearthed is sinking in among the investment community. Scale is important to business and San Marco ensured sufficient funds would be available to initiate the first drill program. Going forward, management expects to have some results that could dramatically change its market cap. This over-subscription appears to be a matter of a few new shareholder groups that have clued in to what the Company is onto and are offering great support.


Share structure:

As of February 2020

Outstanding Shares: 32,890,731

Warrants: 7,095,186 (1.)(2.)

Options: 3,066,667 (3.)

Fully Diluted: 43,052,584

Cash and Receivables: ~$900,000 (CAD)

Debt: None

52 week high/low: $0.25/$0.085

Insider Ownership: 15%

(1) 3,738,334 units at a price of $0.12 per unit. Each unit was comprised of one share and one warrant to purchase one common share for three years at a price of $0.20 for the first two years and $0.25 for the third year.

(2) 2,906,852 units at a price of $0.135 per unit. Each unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share for $0.20 until February 19, 2023. If, after June 19, 2020, the closing price of San Marco’s shares is at least $0.40 per share for 10 trading days, San Marco may accelerate the expiry of the warrants to 30 calendar days after the expiry of that 10 trading day period.

(3) Options are exercisable at prices varying from $0.18 to $0.60 per share.

With a market cap of only $6 million, what this indicates, combined with the asset San Marco has, is that the Company can be seen as quite undervalued. In September 2019, San Marco shareholders approved a move to consolidate its shares 3:1, a move which was done to accommodate the acquisition of the Buck property. The reason for this, as explained by Company management, was that the vendor wanted 90% of San Marco’s shares and upon negotiation, had 22 million common shares issued and outstanding. The team added that it is pushing towards a mandate to have a market cap that reflects the value of the Buck property asset.

Unparalleled experience:

Many readers will be familiar with the name of the man at the helm of San Marco Resources - Chairman “Tookie” Angus, a marketing guru in the industry. He was the former head of Global Mining Group at Fasken Martineau, as well as a former director of First Quantum Minerals, Canico Resources, Bema Gold, Ventana Gold and Nevsun. An ex-mining lawyer, he partnered with Executive Director Robert Willis to start San Marco Resources.

Robert Willis also has his share of experience. A geological engineer by profession, he looks at economics of project from the get-go. He was also co - founder of Geologix Resources, Manhattan Minerals and Pioneer Metals, he was involved with seeing gold mines put into production, two in Canada, one in the US and another in Mexico.

In his words, he looks at the “guts” of a project and says - “This has got a chance”, then he assesses - key exploration components that are important for a company to be sure are in place prior to going to market looking or funding.

He also noted to Stockhouse than in his 40+ years, this Buck property could top the list of possibilities to eventually become a mine. This property has all the checkmarks.

Investment summary:

With the first phase of drilling upcoming, the Company will soon confirm targets that were identified after re-analysis of historic results on the Buck project. Following this, comes the second and third phase of drilling which will include stepping out and testing new targets.

This is an interesting time for the Company as the year goes on. The team intends to explore a lot more regionally and get to know the full potential of the footprint of mineralization and create further exciting new targets. Investors should stay tuned for more on San Marco Resources. For now, as the team stated, the plan is to get fresh drill core and show what is really under the surface. Then it’s “Game on” from there.

sanmarcocorp.com

FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.