History of substantial mining
Chihuahua State has a long history of gold and silver production. The Sierra Madre Occidental mountain range is host to a prolific trend that is several hundred kilometers long with past production and new discoveries. It is estimated that over the last 400 years this region of Mexico has produced 40 million ounces of gold and up to 2 billion ounces of silver. The Temoris Mining District alone is reported to have produced large quantities of gold and silver since Spanish colonial times. Local miners claim that mines in the vicinity of Tara Gold’s projects have been worked for over 100 years and the abundance of mine workings scattered throughout the district attests to this long productive history.
Most of the mines have been worked in an informal fashion by local miners with little or no grade control or effective mine planning. The most well known of these mines in the district is the San Luis Mine at Guazapares on the San Miguel concessions where bonanza grade gold shoots were mined to an inclined depth of 815 feet by the Alaska-Juneau Mining Company in the late 1950’s to 1963. The district has seen limited, intermittent exploration programs by multinational companies since the late 1970’s. Near the San Miguel and La Currita project area, there are several multi-million ounce gold/silver deposits that have recently been discovered or are currently in production.
Renewed interest in the Project Area has been sparked by Palmarejo Silver and Gold Corp.’s (“Palmarejo”) drilling of a multimillion ounces gold and silver resource on its Palmarejo Project.
Recent discoveries in the area
Developing the nearby Palmarejo mine and has acquired all the ground surrounding San Miguel. The Palmarejo mine that has an inferred resource of over 3 mil oz gold equivalent. Palmarejo’s property around San Miguel is currently in an early exploration phase. Palmarejo has had great results from their drilling right next to the border of Tara’s La Estrella and La Currita properties. Tara Gold believes that Palmarejo’s Guadalupe Project is the northwest extension of the La Currita mineralized structure.
About 20 miles to the SE of Tara, Glamis owns the El Sauzal mine. The mine produced approximately 200,000 ozs of gold at an estimated total cash cost of less that $150/oz.
Gammon Lake Resource
The Ocampo Gold-Silver Project is approx. 40 miles to the North of Tara. It is expected to produce at a rate of approximately 250,000 ozs gold-equivalent at a cash cost of approximately $150/oz.
Minefinders Corporation Ltd.
The Dolores Mine has proven and probable reserves of approximately 72 million tonnes of ore grading 0.839 grams of gold and 44.46 grams of silver per tonne for a total of 3.6 million ounces of gold equivalent.
Kimber Resources Inc.
Kimber’s Monterde Claims cover a 37-kilometre section of the mineralization in the Sierra Madre. The Carmen Deposit contains approximately 20 million tonnes grading 0.87 grams of gold and 57 grams of silver per tonne. Kimber also has an additional approximately 4 million tonnes of measured and indicated resources in two other deposits.
Alamos Gold Ltd.
Alamos’s Mulatos Gold open-pit, heap leach project is contains approximately 44 million tonnes grading 1.587 grams of gold per tonne.
Goldcorp’s San Dimas gold-silver deposit is one of the most significant precious metal deposits in Mexico. The deposit was first mined in 1757 and was continuously worked by the Spanish until 1810. Historical production from the San Dimas district is estimated at 655 million ounces of silver and 9.33 million ounces of gold.
Since 1632, the Batopilas Mining District area has produced over 300 million ounces of silver from the prolific Lower Volcanic Sequence. Between 1880 and 1906 and estimated 20 million ounces of silver were extracted from the Batopilas Mines alone.
The most prolific gold/silver mine in Chihuahua mining history is the Guadalupe y Calvo Mine. From 1835 to 1939, the USGS estimated that 1.54 million tonnes was mined grade 40.5 grams of gold and 569 grams of silver per tonne for production of 1.8 million ounces of gold and 25 million ounces of silver.