(Las Cucharas Gold and Silver Project showing locations of a planned 11 diamond drill hole 2,000 metre drill program)
A listed junior resource exploration company has unearthed exciting assay results from its Mexican gold and silver project that lies near developed areas that have yielded many operators much success.
Terreno Resources Corp. (
TSX-V: TNO.H,
Forum) has been busy advancing its exploration program at its Las Cucharas Gold and Silver Project in Nayarit, Mexico.
A historic gold and silver mining region, Las Cucharas has documented small-scale production from 1903 through 1961 of approximately 3,000 kilograms of gold and 30,000 kilograms of silver. It is located in the southern extreme of the mid-Tertiary Sierra Madre Occidental (SMO) volcanic belt, which hosts many of Mexico’s most significant gold and silver deposits. Significant vein hosted gold and silver mineralization occurs along a six-kilometer-long northwest-trending regional structural zone. The project area covers 4,447 hectares in 17 concessions.
14 major showings occur along this structural zone as widespread gold and silver values occur in many smaller showings throughout the project area.
The Company has completed the
$700,000 of exploration expendituresrequired to earn a 60% interest in the Las Cucharas Gold and Silver Project. Now that it has completed the exploration expenditures required to earn a 60% interest in the project, the Company has requested to graduate from the NEX Board to the TSX Venture Exchange.
This is an emerging play that should interest many precious mineral investors, as the Company moves to list its shares on the TSX Venture. Terreno Resources Corp. Chief Executive Officer George A. Brown took time to sit down with Stockhouse Editorial and shed more light on the interesting Terreno story ….
Thank you for joining us today. Let’s bring our readers up to speed on your Company. For those that don’t know, can you give us a rundown on what Terreno Resources is all about?
Terreno was placed on the NEX in September 2015 for failure to meet the minimum TSX Venture listing requirements. I subsequently joined Terreno in June 2017 as President & CEO and as a director. My mission was to obtain a property of merit for Terreno with which Terreno expects to graduate back to the TSX Venture. I have been successful in achieving TSX Venture listing with MacMillan Gold Corp. in 2001, Duran Ventures Inc. in 2003, Cache Exploration Ltd. in 2007, and MacMillan Minerals Inc. in 2012.
In January 2018, Terreno optioned the Las Cucharas Gold and Silver Property from a private Ontario company. I knew the property well as I had been the President & CEO of the owners of the property, MacMillan Minerals Inc., until MacMillan did a deal with Pan American Silver (PAA) in 2016 under which PAA placed all of its gold royalties into MacMillan which then became the royalty company Maverix Metals Inc.
2021 was been a notable year for your Company, what are some highlights that stand out?
At the end of 2020, Terreno completed the $700,000 of exploration expenditures required to earn a 60% interest. In March 2021, we negotiated the right to purchase the remaining 40% for 5,000,000 common shares per 10% additional interest due annually between January 2023 and January 2026, subject to regulatory approvals. Adding each additional 10% is at the discretion of Terreno with a twelve-month period between each decision point. There are no cash payments nor minimum spending requirements other than maintaining the concessions in good standing.
In September 2021, we closed a $275,500 first tranche of a private placement financing and then requested graduation to the TSX Venture. We hope that the graduation is completed during 2021.
For those unfamiliar with the Las Cucharas region, can you briefly summarize its characteristics?
The Las Cucharas Gold and Silver Property is in the west coast state of Nayarit. It is 20 km north of Acaponeta following the path of the Las Cucharas River. Acaponeta is 160 km south of the Mazatlan international airport along interstate highway 150 which is the main highway that runs from Mazatlan to Mexico City. The property is easily accessible except during the rainy season from mid-June to mid-September due to the seasonal swollen waters of the river.
The Company has some exciting assay results from the Las Cucharas project, what can you share right now?
Upon systematic exploration of this project, the Terreno team has found clear evidence of a widespread hydrothermal precious metal system with greater size potential and better continuity than was previously indicated by the historical results.
We have identified 5 target locations where we wish to complete an 11 hole, 2,000 metre diamond drilling program.
Site A includes a 200-metre hole to test the El Cardon target and site B includes a 300-metre hole to test the La Union target. These two targets have significant historical production of 130,000 tons with reported 9.3 g/t gold and 761 g/t silver. The known depth of this historical work was limited by the water table and the historical lack of site electricity for water pumping.
Sites C and D has a 100 m and a 110 m hole from the same drill pad drilled in different directions. Site E is a 100 m hole. All 3 are to test the Los Gallos Zone where 15 underground channel samples along 32 m of a 2.25 m vein has reported 3.3 g/t gold and 154.8 g/t silver.
Sites F, G, and H have 3 holes of 200 m each to test the La Taverna-Jocuixtle-La Italia Zone where there is a collapsed 250 m by 10 m working indicating significant historical production. A drill hole by predecessor MacMillan reported 1.5 m of 0.33 g/t gold and 141.6 g/t silver. Terreno surface results include 18.9 g/t gold and 317 g/t silver over 0.3 m, 0.7 g/t gold and 807 g/t silver over 1.0 m, and 246 g/t silver and 1.05% copper over 0.4 m. Surface sampling at Jocuixtle reported 3.3 g/t gold and 710 g/t silver over 1.3 m and 1.1 g/t gold, 106 g/t silver, 0.77% Copper, 0.54% zinc over 1.3 m
Sites I and J include a 240 m and a 200 m hole to test the La Raizura Zone with signs of significant historical production along a 100 m drift. Predecessor MacMillan reported drill results of 2.9 g/t gold and 13.3 g/t silver over 2.7 m and also 2.5 g/t gold and 103.9 g/t silver over 7.4 m. Underground sampling reported 3 g/t gold and 292 g/t silver weighted average across the back of a stope over 71 m by 2 m width. An underground check sample on structure reported 13.9 g/t gold and 856 g/t silver.
Site K consists of a 120 m hole to test the La Planta Zone where surface channel sampling reported 17.9 g/t Silver, 0.24% copper, 0.65% lead, 1.42% zinc over 18.2 m
These 11 holes are spread to test over 4 km of the 6 km of mineralization.
The State of Nayarit in Mexico is home to several important producing mines, past producing mines, and well-known mineralized districts, is it safe to say this is a successful jurisdiction for those gold companies that work here?
The Sierra Madre Occidental Precious Metal Corridor along the western states of Mexico is the location of the following projects:
-Pino’s Altos Gold and Silver deposit (Agnico Eagle Mines Ltd.)
-El Sauzal Gold deposit (Goldcorp Inc.)
-El Gallo & El Gallo Gold and Silver deposits (McEwen Mining Inc.)
-Topia Gold and Silver deposit (Great Panther Silver Corp.)
-San Dimas Gold and Silver deposit (First Majestic Silver Corp.)
-Metates Gold and Silver deposit (Chesapeake Gold Corp.)
-La Parrilla Silver/Lead/Zinc deposit (First Majestic Silver Corp.)
-Del Toro Silver/Lead/Zinc deposit (First Majestic Silver Corp.)
-San Martin de Bolanos Gold and Silver deposit (First Majestic Silver Corp.)
-La Trinidad / Taunus Gold deposit (Marlin Gold Mining Ltd.)
Closer to our project are the following exploration plays:
-Plamosa Silver (GR Silver Mining Ltd.)
-Trinidad & El Salto (Mako Mining Corp. optioned to GR Silver Mining Ltd.)
-La Lajita (Silver Tiger Metals Inc.)
-El Colomo with mill (Gainey Capital Corp.)
-SDA Mill (Xali Gold Corp./ Candente Gold Corp.)
-Orion (Minera Frisco SAB CV)
We feel that the two existing mills nearby could help Terreno easily achieve bulk test sampling and could be considered for custom milling at a greatly reduced capital cost in the event of a production decision. However, it should be noted that the goal of management is to make a significant gold and silver discovery and then sell the deposit or the company to a producer as was accomplished by the amalgamation of Corner Bay Silver and Pan American Silver in 2003 after the discovery of the Alamo Dorado Silver Mine.
Let’s talk about the leadership team here, can you give us a rundown on your experience and a few highlights on the management team?
I am a director and President & CEO. I have a BBA with honours in accounting and finance from Bishop’s University. My first mining work started 40 years ago as a project analyst for Campbell Chibougamau Mines reporting on flow though exploration spending. I was then promoted to Controller for Cullaton Lake Gold Mines operating a 350 t/d gold mine in the NWT. Subsequently, as a financial consultant, I looked after the financial reporting for Muscocho Exploration (Ontario), Flanagan McAdam Resources (Ontario), McNellen Resources (Ontario), Boulder Mining (Colorado), Corner Bay Silver (Mexico), MacMillan Gold (Peru), Chesbar Resources (Venuzuela), and Nugget Resources (Australia).
Corner Bay Silver discovered the Alamo Dorado Mine in Sonora, Mexico. Pan American Silver (PAA) purchased Corner Bay in 2003 for $6.60 per share in PAA shares and warrants. I then took over as President and director of MacMillan Gold the day before the announced TSE trading suspension for failure to meet ongoing listing requirements. I proceeded to raise capital, obtain Mexico exploration projects, and list MacMillan on the TSX Venture. I optioned MacMillan’s Peru Aguila Project to Duran Ventures Inc. As President of Duran, I raised capital and then listed Duran on the TSX Venture. As a director of Cache Exploration, I raised capital, obtained exploration properties, and listed Cache on the TSX Venture. As President of MacMillan Minerals Inc., I raised capital and listed MacMillan on the TSX Venture with the Las Cucharas Gold and Silver Project as the listing property of merit. In 2016, I completed a deal with Pan American Silver whereby they vended their gold royalties into MacMillan for shares and MacMillan became the royalty company, Maverix Metals.
Mr. Joseph Del Campo, holds Chartered Professional Accountant (CPA) and Certified Management Accountant (CMA) designations. Joseph has held senior management and Board positions with a number of mining companies and is our audit chairman. He’s currently on the Board of Directors of Unigold Inc., Centurion Minerals Ltd., and PJX Resources Inc.. Mr. Del Campo also Chairs the Audit Committee for these companies.
Joseph began his career with Falconbridge Limited in 1974 and spent over 19 years working within the Falconbridge group of companies at various progressive financial positions, including being Controller and Treasurer of Falconbridge Dominicana, C. por A., a ferronickel operation in the Dominican Republic; United Keno Hill Mines Limited, a silver producer in the Yukon Territories; and Falconbridge Gold Corporation, a gold mining company with mines in Zimbabwe and northern Ontario.
From 1993 to late 1995 Joseph was Secretary Treasurer of Cliff Resources Corporation, a diamond exploration and mine rehabilitation company, with operations in Australia and United States.
In late 1995, Joseph joined Minorca Resources Inc., a gold mining company with operations in Canada, United States, South America and Africa as Vice President, Finance and Chief Financial Officer. In February 1998, Mr. Del Campo was appointed Chief Executive Officer of the company and was instrumental in a merger transaction with another gold mining company whereby Minorca shareholders received a 61% premium to market.
In 2002, Joseph joined Unigold Inc., a gold exploration company with concessions in the Dominican Republic as Vice President, Finance and CFO, and from early 2015 to late 2018 he was the Interim Chief Executive Officer.
Richard (Rick) Williams is our third director. After earning his law degree, he worked for Polysar, in Sarnia, where he completed a series of international acquisitions. Thereafter, he joined Malartic Hygrade as its Vice-President-Counsel and held the same position in Minefinders Corporation, an affiliated company. Malartic was a producing mine which held the down-dip extension of the Camflo Mine, which was one of the founding operations for Barrick. Minefinders, which held advanced exploration projects in Mexico, was sold to Pan American Silver. One of his other responsibilities at the time, was a company called Western International with exploration projects in Colombia.
Following a decade with the above group, Rick went on to establish Waseco Resources, which held an alluvial gold project in Indonesia, and currently holds interests in a gold prospect in Nevada which it has recently optioned to a major. Rick also served as a board member of Guyana Goldfields for a number of years prior to its sale to Zijin Mining. He is a board member of Sparton Resources, which has gold exploration prospects in Ontario and Quebec, as well as an equity interest VRB Energy, a major battery manufacturer in China. He is the co-founder and a board member of Canadian Premium Sand, which owns a high grade silica sand quarry In Manitoba and is looking at becoming a major manufacturer of solar panels. Rick joined the board of Terreno in 2017, and is a shareholder in the private company that optioned the property to Terreno.
Mr. Cary Pothorin is our Vice President of Exploration. Cary is a professional geologist in good standing with the Association of Professional Engineers and Geologists of British Columbia. He has a B.Sc. with Specialization in Geology from the University of Alberta and a Business Administration Diploma from Camosun College in Victoria, B.C. and is fluent in Spanish with over 25 years of work experience throughout the Americas. He is a Qualified Person as per NI 43-101 for the disclosure of any technical results by Terreno.
When I was CEO of Duran Ventures, I recruited Cary to be the President. He was hired with the important goal of drilling the Aguila Copper-Moly deposit to a NI 43-101 resource estimate which he very successfully completed.
Mr. Thomas (Tom) Skimming and Mr. Wayne Valliant are members of our technical committee tasked with providing guidance for our exploration activities.
Mr. Skimming has over 55 years of experience in the mineral resource industry and has served as an officer and/or director of numerous exploration and mining companies. Mr. Skimming obtained a B.Sc. degree from the University of Michigan and was enrolled in post graduate studies in mineral exploration at McGill University in Montreal. Mr. Skimming has been a member of the Association of Professional Engineers of Ontario since 1971 and the Association of Professional Engineers and Geoscientists of the Province of British Columbia since 2009. He serves as the President and Chief Engineer of Thomas Skimming & Associates Limited and has been an independent mining consultant since 1972. In his capacity as exploration and mining consultant, Mr. Skimming has traveled extensively throughout Canada, the United States, Mexico, Central and South America, Eastern Europe, Russia, the Philippines, Australia, and New Zealand. Mr. Skimming has been instrumental in the discovery and/or development of several deposits which include: the Cullaton Lake, Shear Lake and Heninga Lake gold and base metal deposits n the former Northwest Territories; the world class Teck-Corona gold orebody at Hemlo; and the large Golden Reward, heap-leach, gold deposit in South Dakota.
Mr. Valliant has over 40 years of geological experience since completing his B.Sc. Geology at Carlton University in Ottawa. Mr. Valliant has been a partner and the Lead Principal Geologist at RPA in Toronto. He is a member of the Association of Professional Geoscientists of Ontario. He has key skills in Mineral Resource and Reserve Estimation, Reserve and Grade Control Reviews, Feasibility/Pre-feasibility Studies, Scoping Studies, and Project Management. He has carried out assignments in North, Central, and South America, Europe, Asia, Africa, and Australia. Prior to working as a consultant, Mr. Valliant worked as a geologist for over twenty years at gold and iron ore mining operations in Canada and Mexico.
Thank you again for telling us about your Company today, anything further to add?
Watch for our graduation to the TSX Venture and then be on the lookout for exciting new gold and silver results from Las Cucharas!
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.