The Biricu Property is held by Esperanza Resources (TSX-V:EPZ), and is under option to Guerrero Ventures Inc.
The option agreement dated December 22, 2011 between the two parties gives Guerrero the right to earn a 100% total interest in the Biricu Property from Esperanza. This 100% ownership is achieved by Guerrero making a cash payment of CDN$20,000 upon executing the option agreement [completed], and over a four-year period:
- issuing 1,050,000 common shares to Esperanza, including 250,000 on the first anniversary of the option agreement [completed]
- incurring exploration expenditures of CDN$4,000,000, including CDN$250,000 in the first year
In addition, Guerrero must pay a 2% NSR and CDN$10.00 per ounce of gold resources as set out in a bankable feasibility study.
The Biricu Property claims are located in southwestern Mexico, along a geologic trend of the Guerrero Gold Belt (GGB), one of Mexico’s largest and most prolific gold producing regions. The claims comprise 41,000 ha of highly prospective ground.
The Biricu Property is in close proximity to several operating gold mines and significant gold discoveries, including:
- El Limon-Los Guajes owned by Torex Gold (TSX:TXG)
- Bermejal, Los Filos and Nukay owned by Goldcorp (TSX:G)
- Ana Paula controlled by Newstrike Capital (TSX-V:NES)
Mineralization in the GGB was first discovered in 1924 and inventories have continued to grow since. The Biricu Property contains identical reactive carbonate and sandstone host rocks as known deposits in the region. Moreover, intrusive rock types identified are identical to those seen in Goldcorp’s Los Filos Project deposits as well as in Torex Gold’s El Limon deposits.
A reconnaissance exploration work program commenced in mid-February 2012, under the direction of David Jones, a leading GGB geologist and a technical consultant to Guerrero. Exploration activities to date have focused in the northern half of the property in target areas such as Punto Rojo, Hornfels Hill and Eastern Ridge. Work completed to date over the property includes geological mapping and prospecting, 298 rock samples, 187 stream sediment samples and 390 soil samples. In addition, a VTEM airborne magnetic and electromagnetic survey of 1,403 line kilometres was completed in September 2012. A follow-up airborne gradiometer magnetic survey of 2,052 line kilometers was completed in December 2014. An initial diamond drill program of 5,300 metres was completed in December 2014.
Based on encouraging results obtained in the 2014 drilling program the Company is preparing additional diamond drill testing to commence in the second half of 2015.