Resource Geosciences de Mexico SA de CV / Resource Geosciences Inc.
Mexico’s Next Big Gold
Discovery
by
Matthew D. Gray
Resource Geosciences de Mexico SA de CV
February 2017
The Mexican Roundup, Hermosillo, 2017
La India Mine, Agnico Eagle, Sonora
Sources of Information
All resource estimate and production information is
obtained from public domain sources, including:
I. Company press releases and annual reports
II. Public company regulatory filings (SEDAR, EDGAR)
II. Servicio Geologico de Mexico
III. INEGI
IV. USBM
V. USGS
VI. Public domain academic journals
Information is believed to be accurate but has not
been independently confirmed by the author!
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Conclusions
1. An intrusive related deposit like Peñasquito or Los
Guajes is likely to be the next big discovery as
measured by contained ounces gold, but ………..
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Conclusions
2. Don’t be surprised if a high grade orogenic deposit
is the next big discovery, and this deposit type is an
attractive exploration target.
Why?
• High grade, long life mine
• Small footprint of UG mine - easier to obtain social
license, favors development
• The favored geologic terrain coincides with a relatively
favorable logistical/social/political location
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Conclusions
3. Where?
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Conclusions
3. Where?
In our neighborhood – the Altar trend, Sonora.
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Centauro Pit, La Herradura, Fresnillo PLC
Thanks to Chris Osterman for the idea for this talk
(however all ignorance demonstrated herein is
exclusively that of M. D. Gray)
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Mexico’s potential for orogenic
deposits
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Geologic characteristics of orogenic deposits
1. Associated with regional scale deformation structures
• Compressional/transpressional stress
2. All time periods 2.8 Ga (Archean) and later
3. Gold associated with pyrite, pyrrhotite, arsenopyrite,
quartz+carbonate veins
4. Deep seated source of hydrothermal fluids
• Metamorphic dehydration reactions affecting mafic
volcanic and/or pyritic carbonaceous sedimentary
strata
• Magmatic for some deposits?
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Geologic characteristics of orogenic deposits
5. Relatively low salinity (<10%) CO2 enriched fluids
6. Deposition conditions 1- 3Kbar, 250 – 400o C.
7. 5 – 20km depth of formation
8. Deposited at or above ductile/brittle transition
9. Not lithology dependent, but rheology dependent
• Adjacent contrasting rheologic characteristics may
lead to structural dilation and ore deposition sites
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Geologic characteristics of orogenic deposits
10.Both low grade bulk minable zones and as high grade veins
11.Can exhibit vertical continuity of grade over 1km to 3km
12.Native gold, from microscopic to megascopic scale, common
13.Metallurgically “easy” deposits
14.Notable examples:
o Ashanti, Ghana 67M oz produced
o Timmins camp, Ontario 60M oz Au produced
o Kalgoorlie, Australia 52M Oz Au produced
o Motherlode, California 40M oz Au produced lode
(60Moz Au produced placer)
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Geologic characteristics of orogenic deposits
Age distribution orogenic gold deposits
(from Goldfarb et al. 2010 after Groves 2005)
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Geologic characteristics of orogenic deposits
Structural setting
• Second and third order structures off of
major regional structures
• The regional structures are critical and
necessary, but generally do NOT host the
ore deposits
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Motherlode, CA, Orogenic Gold Regional Structure
(from Sillitoe, 2008)
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Superior Province, Orogenic Gold Regional Structure
(from Dube and Gosselin, 2007)
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Porcupine Mining District (Timmins) Superior Province
(compiled from Ferguson, 1968; Pyke et al., 1971; Pyke, 1982),
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Geologic characteristics of orogenic deposits
Structural setting:
• Transpression
- strike-slip motion
- horizontal shortening
- vertical extension
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Dilational environment
(Sibson, 1986)
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Dilational environment
(Drew, 2003)
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Vein style
dependent on P-T
(depth)
(from Colvine et al.,
1988)
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Within a given deposit or district, gold may be present in a
variety of structural environments
(Schematic of Rosebel, Suriname Orogenic Gold Deposit, Iamgold
from Voicu, 2010)
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Vertical extent
Productive Productive
vertical extent, vertical extent,
500 m
epithermal orogenic
system, 300 to system, 1000 to
1000 m 700m typical 3000m typical
1500 m
2000 m
2500 m
3000 m
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Orogenic gold deposits are an important part of the gold
endowment of Mexico.
- 4 of the 15 largest gold mines in Mexico are orogenic
deposits
- Orogenic deposit reserves and resources are nearly equal
to those of all low sulfidation deposits in Mexico
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Top 20 Mexican Gold Producing Mines (less Frisco)
Mine Company State 2015 Production, Oz.
1 Peñasquito Goldcorp Zac 860,300
2 La Herradura Fresnillo Son 398,866
La Herradura Fresnillo 2016 520,366
3 El Limon-Guajes Torex Gue 279,000*
4 Los Filos Goldcorp Gue 272,900
5 Pinos Altos Agnico Eagle Chi 242,677
6 Noche Buena Fresnillo Son 158,179
7 Tayoltita Primero Dgo 151,355
8 Mulatos Alamos Gold Son 140,330
9 Cerro de San Pedro New Gold SLP 105,500
10 La India Agnico Eagle Son 104,362
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Top 20 Mexican Gold Producing Mines (less Frisco)
Mine Company State 2015 Production, Oz.
11 San Francisco Timmins Gold Son 93,353
12 Cienega Fresnillo Dgo 85,662
13 Mercedes Yamana Son 84,137
14 El Castillo Argonaut Dgo 79,751
15 Chanate Alamos Gold Son 79,312
16 Dolores Pan American Chi 79,100
17 Palmarejo Coeur Chi 70,922
18 El Gallo McEwen Mining Sin 65,967
19 La Colorada Argonaut Son 55,056
20 Mascota Agnico Eagle Chi 45,000
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Mexico Gold: Production and Inventory by Deposit
Type
2015 M oz. M oz.
Deposit Type Production oz. Reserves P&P Resource M&I
1 Intrusive Related 1,318,451 34.09 9.97
2 LSE Epithermal 1,078,145 8.37 4.21
3 Orogenic 729,710 8.05 2.94
4 HS Epithermal 244,692 2.41 8.28
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Current Mexico Gold Producers
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Current Mexico Gold Producers
>150,000 ounces
annual gold production
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Active gold mines and deposits w/ > 1M Oz.
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Mexico’s prospective regions for orogenic
deposits
Baja California
• Unfavorable political/social environment
NW Sonora
• Favorable political/social environment
• Altar Trend
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Criteria to Assess Prospectivity
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Geologic characteristics of orogenic deposits
1. Associated with regional scale deformation structures
2. All time periods 2.8 Ga (Archean) and later
3. Characterized by Au, As, S enrichment
4. Deep seated source of hydrothermal fluids
5. Relatively low salinity (<10%) CO2 enriched fluids
6. Deposition conditions 1- 3Kbar, 250 – 400o C.
7. 5 – 20km depth of formation
8. Deposited at or above ductile/brittle transition
9. Not lithology dependent
10.Both low grade bulk minable zones and high grade veins
11.Can exhibit vertical continuity of grade over 1km to 3km
12.Native gold, microscopic to megascopic scale, common
13.Metallurgically “easy” deposits
Resource Geosciences de Mexico SA de CV / Resource Geosciences Inc.
The Mexican Roundup, Hermosillo, 2017
Geologic characteristics of orogenic deposits
1. Associated with regional scale deformation structures
2. All time periods 2.8 Ga (Archean) and later
3. Characterized by Au, As, S enrichment
4. Deep seated source of hydrothermal fluids
5. Relatively low salinity (<10%) CO2 enriched fluids
6. Deposition conditions 1- 3Kbar, 250 – 400o C.
7. 5 – 20km depth of formation
8. Deposited at or above ductile/brittle transition
9. Not lithology dependent
10.Both low grade bulk minable zones and high grade veins
11.Can exhibit vertical continuity of grade 1km to 3km
12.Native gold, microscopic to megascopic scale, common
13.Metallurgically “easy” deposits
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The Mexican Roundup, Hermosillo, 2017
Economic potential of the Altar trend
Altar trend orogenic gold prospectivity checklist
Needed Got it?
Economically significant
orogenic mineralizing processes
affected region?
Processes operated at regional
scale?
Association with regional
feature?
Systems preserved?
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Economic potential of the Altar trend
Altar trend orogenic gold prospectivity checklist
Needed Got it?
Economically significant La Herradura (orogenic features
orogenic mineralizing processes
affected region?
documented by Quintanar Ruiz,
2008)
Processes operated at regional
scale?
Association with regional
feature?
Systems preserved?
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Economic potential of the Altar trend
Altar trend orogenic gold prospectivity checklist
Needed Got it?
Economically significant La Herradura (orogenic features
orogenic mineralizing processes
affected region?
documented by Quintanar Ruiz,
2008)
Processes operated at regional Geologically similar deposits
scale? known over 200km trend
Association with regional
feature?
Systems preserved?
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Economic potential of the Altar trend
Altar trend orogenic gold prospectivity checklist
Needed Got it?
Economically significant La Herradura (orogenic features
orogenic mineralizing processes
affected region?
documented by Quintanar Ruiz,
2008)
Processes operated at regional Geologically similar deposits
scale? known over 200km trend
Association with regional
feature? MSM (whatever it is!)
Systems preserved?
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Economic potential of the Altar trend
Altar trend orogenic gold prospectivity checklist
Needed Got it?
Economically significant La Herradura (orogenic features
orogenic mineralizing processes
affected region?
documented by Quintanar Ruiz,
2008)
Processes operated at regional Geologically similar deposits
scale? known over 200km trend
Association with regional
feature? MSM (whatever it is!)
Deep drilling at La Herradura
Systems preserved?
confirms
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Economic potential of the Altar trend
1. La Herradura deposit is unequivocal proof that Sonora
hosts significant orogenic deposits (Quintanar Ruiz, 2008)
2. Other mines and prospects demonstrate regional
occurrence of geologically similar deposits
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Active gold mines and deposits w/ > 1M Oz.
Altar Trend : >7M oz. gold production since 1997
2016 Au production: ~900,000 oz.
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Economic potential of the Altar trend
1. La Herradura deposit is unequivocal proof that Sonora
hosts significant orogenic deposits (Quintanar Ruiz, 2008)
2. Other mines and prospects demonstrate regional
occurrence of geologically similar deposits
3. We can disagree about what it is, but the MSM is a
regional structure!
o Boundary between 1.8-1.9 Ga basement of Caborca
block and 1.6-1.7 Ga basement of North American
block
o >1000 km of lateral displacement as originally
proposed not supported by field evidence
o Jurassic timing of development not certain
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Mojave Sonora Megashear and Gold Deposits
Calvin and Hobbes, by Bill Watterson
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Mojave Sonora Megashear and Gold Deposits
Does Megashear have any relationship to
gold deposits?
• Yes
Is it a direct genetic relationship?
• Probably not.
Is it relevant?
• It might be.
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Superior Province Regional Structures and MSM
(from Dube and Gosselin, 2007, Anderson et al., 2005 )
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Mojave Sonora Megashear Regional Structure
(from Anderson et al., 2005)
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Mojave Sonora Megashear Regional Structure
(from Anderson et al., 2005)
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Mojave Sonora Megashear Regional Structure
(from Anderson et al., 2005)
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Mojave Sonora Megashear and Gold Deposits
(from MSM map from Anderson et al., 2005)
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Mojave Sonora Megashear and Gold Deposits
(from MSM map from Anderson et al., 2005)
Herradura
Noche Buena
Chanate
San Francisco
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Mojave Sonora Megashear and Gold Deposits
(from MSM map from Anderson et al., 2005)
Spatial relationship between
gold deposits and MSM
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Mojave Sonora Megashear and Gold Deposits
Spatial relationship between gold deposits
and MSM is unequivocal, but is it
coincidental?
• MSM interpreted to have formed as early
as Jurassic
• Altar trend gold deposits much younger
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Ages Sonoran Orogenic Gold Deposits
Herradura - 61 Ma vein sericite
- 61 Ma ore related pyrite
Noche Buena - 56 Ma vein sericite
Chanate - 52 Ma vein sericite
San Francisco - 42 Ma vein sericite
Vein sericite dates 40Ar/39Ar from USGS OFR 2016-1008
Re-Os date from Quintanar, 2008
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Mojave Sonora Megashear and Gold Deposits
Age difference between MSM and orogenic gold deposits
precludes a direct genetic link, however:
• Altar trend gold deposits coeval with Laramide orogeny (70 to
40Ma)
• Once a structure, always a structure
• Laramide re-activation of MSM?
• MSM was ground prep for Laramide orogenic mineralizing
processes?
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Future of the Altar trend
• More bulk minable “low grade” deposits will be
discovered minable by open pit methods
• Deeper deposits may be exploitable by low
cost (relatively) underground bulk mining
methods
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Future of the Altar trend
Centauro Deep
- Drillhole demonstrated
gold mineralization
over at least 1500m
vertical interval
- ~ 350,000 ounce
resource Au at >5 gpt
reported by Fresnillo in
December 2012
From October 2013 presentation by Fresnillo, available at
http://www.fresnilloplc.com/media/113212/Fresnillo-Exploration-Day-9-Oct-2013.pdf
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Future of the Altar trend
La Herradura, Noche Buena, El Chanate
prove that Altar trend is prospective for
bulk minable relatively low grade deposits.
Are there other targets we should be
seeking?
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Future of the Altar trend
In particular, do high grade orogenic vein
deposits occur along the Altar trend?
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Future of the Altar trend
In particular, do high grade orogenic vein
deposits occur along the Altar trend?
Yes, but they are concealed, and
scale and grade is unknown
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Future of the Altar trend
Desert prospectors provide conclusive
evidence that high grade vein deposits
are present
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Orogenic gold deposits, Sonora
Mockingbird Mine, Motherlode region CA Altar Trend, Sonora
(photo from https://www.collectorsedge.com) Gold quartz vein float
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Orogenic gold deposits, Sonora
Butte Nugget, Motherlode region, CA Altar Trend, Sonora
(photo from http://www.csmonitor.com) Gold nugget float
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Future of the Altar trend
Exploration drilling has intersected high
grade auriferous veins
Fresnillo has drilled some as part of the
Centauro Deep program
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Future of the Altar trend
Centauro Deep
- Visible gold in
drillhole
BDS7F
- Intercept of
8.95m @14.3
gpt reported
by Fresnillo
from drillhole
HGT-125
From October 2013 presentation by Fresnillo, available at
http://www.fresnilloplc.com/media/113212/Fresnillo-Exploration-Day-9-Oct-2013.pdf
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Future of the Altar trend
• Because orogenic gold systems commonly
have grade continuity measured over >1km
vertical extent, high grade vein systems have
significant potential for expansion at depth.
• Mexican mining industry has particular
expertise with underground mining of vein
deposits.
• When will we see the first head frame along
the Altar trend?
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Grade/Tonnes Orogenic Gold Deposits
(from Dube and Gosselin, 2007)
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Grade/Tonnes Orogenic Gold Deposits
(from Dube and Gosselin, 2007)
5 gpt
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Grade/Tonnes Orogenic Gold Deposits
(from Dube and Gosselin, 2007)
Timmins, Ontario, 1909
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Grade/Tonnes Orogenic Gold Deposits
(from Dube and Gosselin, 2007)
Timmins, Ontario, 1909
Timmins, Ontario, today
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Grade/Tonnes Orogenic Gold Deposits
(from Dube and Gosselin, 2007)
Altar region, Sonora, today
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Grade/Tonnes Orogenic Gold Deposits
(from Dube and Gosselin, 2007)
Altar region, Sonora, in twenty years?
Altar region, Sonora, today
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Conclusions
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Conclusions
• Headframes coming to the Altar Trend
• Long term growth of orogenic gold
production from Altar Trend.
– new bulk minable and open pit deposits
– high grade veins, mined by underground
methods
Resource Geosciences de Mexico SA de CV
The Mexican Roundup, Hermosillo, 2017
Resource Geosciences de Mexico SA de CV
Gracias a todos por su atención.
Thank you for your attention.
Resource Geosciences de Mexico SA de CV
Gracias a todos por su atención.
Thank you for your attention.
