The Huicicila Project is located approximately 25 km southwest of Tepic, Nayarít near the town of Compostela and is host to disseminated porphyry-related copper and gold mineralization and to high-grade base and precious metal-bearing vein mineralization.
The first mineral production from near the Huicicila Project dates to 1650 when silver was produced from mines along the Huicicila River, about 5 km north of the present-day Miravalles mine on the Cila concession block. Mining was discontinued during the Spanish Revolution (1810-1825).
ASARCO defined a historic proven plus probable reserve of 45,274 tons at an average grade of 31.2 g/t Au, 401 g/t Ag, 0.66% Cu, 3.4% Pb on the Miravalles vein. (The ASARCO reserve is not compiant with NI 43-101 and should not be relied upon.) This reserve was largely removed by mining. Similar mineralization is exposed at the Tres Estrellas vein.
Mineralization at the Tres Estrellas and Miravalles veins on the Cila concession block consists of pyrite- plus arsenopyrite-rich, base and precious metal-bearing, quartz veins hosted by envelopes of phyllic (quartz, pyrite, sericite) alteration.
There is good potential for new discoveries of vein and disseminated base and precious metal mineralization within the Huicicila Project Area. A new discovery is the San Patricio Vein, an outcropping vein measuring 1.0m wide, assaying 12 gpt Au, 380 gpt Ag.