Windstorm Resources Inc. /quotes/zigman/1544477 CA:WSR 0.00% (fra:4WE)(wkn:A1H700)(wkn:”Windstorm” or the “Company”) provides an update to shareholders from Dr. Gerry Carlson, President:
I am pleased to report on activities over our first nine months and to outline our plans moving forward with Windstorm. It has been an active time and we are gearing up to get even busier. We completed a drill program on the Kalum project in British Columbia, our IPO property, in 2010 and we subsequently acquired and completed two phases of exploration on the Caldera gold-silver project in Mexico, optioned from Almaden Minerals Ltd. (“Almaden”) in an exciting new discovery district. This new acquisition marked the beginning of our focus on precious metals, primarily in Mexico, and has been followed by the acquisition of our second project, La Escondida. Meanwhile, we have terminated our option on the Kalum project.
Caldera Project
We announced the Caldera acquisition on September 9, 2011, shortly after Almaden announced the new and significant gold-silver discovery on their nearby Ixtaca project. Caldera is a high sulphidation gold-silver target defined by a large and strong alteration zone, over 8 km in length and up to 4 km wide. High sulphidation gold deposits tend to be low grade, but they also form some of the largest gold deposits known, such as Barrick’s Pasqua Lama on the Chile-Argentina border and Newmont’s Yanacocha in Peru.
Preliminary surface exploration by Almaden, followed up by additional programs by Windstorm in November and December, 2010, defined a central zone of intense clay-alunite alteration with associated strong silicification. This core zone is characterized by discrete zones of anomalous geochemical pathfinder elements in soil and rock, including arsenic, antimony, bismuth and molybdenum, with locally anomalous gold values. Typically, these zones are underlain by rocks characterized geophysically by high resistivity, often coinciding with strong silicification, and high chargeability, indicative most commonly of disseminated pyrite mineralization. Numerous drill targets were defined from these surface exploration programs and the targets were prioritized for drill testing.
In early February, the Company mobilized a drill to the site, and over the next three months, eleven holes were drilled for a total of 2,896 m of core. Visually, the alteration mineral and textural assemblages confirmed the high sulphidation model. Geochemically, locally very high values in gold pathfinder metals such as arsenic, antimony, bismuth and molybdenum also confirmed the epithermal model. The combination of the alteration and pathfinder geochemistry, along with anomalous gold values, suggest that some of the Phase I drill holes could have been located in close proximity to ore grade gold mineralization. However, no potential ore grade values (roughly 1 gram/tonne gold or higher would be typical in this environment) were encountered in any of the drill holes.
Windstorm is now compiling all data collected from the Phase I program and is planning a detailed clay alteration study of the drill core using a portable X-ray spectrometer. With this data in hand, we will be looking for clues that will help us vector towards a potential gold zone. With positive recommendations from this work, we will be considering a Phase II drill program that could take place as early as next fall. I continue to be impressed by the size and intensity of the Caldera alteration zone and the strength of the pathfinder metal anomalies within it. There is still plenty of room for the discovery of a significant gold deposit within untested portions of the large alteration zone at Caldera.
La Escondida
Our latest project acquisition is the 6,475 hectare Escondida gold-silver project in Mexico. La Escondida is located along a 300 km structural corridor that includes known mineral deposits such as Penasquito (~18 million oz. Au)1 and Camino Rojo (~3.5 million oz. Au)2. The road accessible project is largely covered with overburden and volcanic rocks that form a thin blanket over the same geological formations that host Penasquito and Camino Rojo, our target deposit type. We are looking for a large, gold-rich polymetallic zone of mineralization that could include skarn, breccia, and stockwork.
Four multi-element geochemical anomalies that are up to several km in length, suggesting potentially significant bedrock sources, have been defined. Exploration plans call for an airborne geophysical survey, for which a contract has been signed. Flying is expected to start shortly. This will be followed by a surface exploration program that will include Induced Polarization and gravity surveys.
We hope to have drill targets established for testing late in the year or in early 2012. We are anticipating that these drill targets will combine both geophysical and geochemical anomalies combined with a geological setting that hosts some of the most significant new mineral discoveries in Mexico.
New Acquisitions
The Company has been very active this year evaluating new precious metal acquisitions, including field visits to the most promising targets. It is our goal to add a more advanced stage exploration project to Windstorm’s project portfolio in the coming months.
Conclusion
I am excited about the direction Windstorm is moving. We have accomplished a great deal in the first 9 months including the exploration programs mentioned above, a successful IPO and 2 financing rounds. Our objective is to increase shareholder value: We have a pipeline of work scheduled to achieve our goal and the funds in treasury ($2.7 million) to execute the plan. I would like to thank our shareholders for their continued support and I look forward to the months ahead.
About Windstorm Resources Inc.
Windstorm Resources is a new company focused on precious metals exploration in Mexico, led by an industry-renowned management team with technical expertise and market experience. Management continues to evaluate quality drill-ready prospects aiming to build an attractive portfolio of gold and silver projects offering multiple opportunities for discovery success. Windstorm is a member of the Grosso Group, a management company specializing in resource exploration for over 18 years.
