With production of approximately 40 million ounces of gold and 2 billion ounces of silver over the last 400 years, the Sierra Madre Occidental Range has become an area of global focus and immense opportunity in the search for new precious metal deposits.
The La Juliana property is located only 7 km from Alamos Gold’s flagship Mulatos mine which, in 2010, reported reserves of 2.4 million ounces Au (proven + probable) and is one of the lowest cost heap-leach gold mines in the world.
La Juliana is located only 2 km from El Jabali which is also optioned by Urastar.
Current Exploration
Urastar Gold Corp. has reviewed the results of past work and has completed confirmation field work and construction of a geological model.
An 850 metre reverse circulation (RC) drill program was completed in early 2012 resulting in significant new gold intersections on the La Juliana deposit. This program focused on historic areas of gold production, interpreted historic drilling, and vectored in on possible mineralized conduits. New assay highlights include 20 ft grading 1.9 g/t Au from the 150 to 170 foot level (more details in the table below).
Previous drill programs employed conventional RC and core drilling technics. These technics have proven to be ineffective for capturing the high grade gold mineralization in the Mulatos district (see the geology section). Urastar is employing modern centre-face sampling RC drilling at El Jabali and La Juliana. Centre face sample RC has been proven very effective in the Mulatos district by Agnico Eagle Mines(formerly Grady) and Alamos Gold. Agnico Eagle recently approved construction of the neighbouring La India property.
Table 1: Significant Drill Results
All drill samples from the La Juliana 2012 Stage I drilling program were analyzed at ALS Chemex, Hermosillo, Mexico utilizing an ICP41 41-element analytical package with AUAA23 Fire Assay finish for gold on all samples. All RC samples were split on-site at the Hyland exploration camp and shipped to ALS Chemex, Hermosillo, Mexico where samples were sorted and crushed to appropriate particle size (pulp) and representatively split to a smaller size for shipment to ALS Chemex’s Vancouver analysis facility. A comprehensive system of standards, blanks, and field duplicates was implemented in the 2012 exploration program (regional/diamond drilling) and is analyzed as chemical assay data becomes available. Michael Collins, P.Geo. is the Company’s Qualified Person with respect to the Company’s La Juliana Project.
Prior Exploration
Modern exploration at the La Juliana prospect includes previous campaigns of mapping, soil and rock geochemistry, geophysics, and drilling by Chesapeake Gold Corp (2002-2003), Dasher Exploration Ltd. (2004-2005), and Pediment Exploration (2007). This work shows the presence of large areas of silica altered and brecciated rhyodacite, with associated coincident gold, antimony, and lead geochemical anomalies.
Total drilling to date amounts to 3668 meters in 32 holes, of which 5 holes (515 meters) were cored. The area of anomalies and gold showings is 2 kilometers in strike length.
Significant gold mineralization was intersected in the drilling, including the following intercepts:
Historical results are non-compliant with NI 43-101 and should not be relied upon.
History
Since colonial times, this area has been attractive for gold mineralization. Gold mineralization is hosted by all the sequences of volcanic and volcano-sedimentary rocks correlated with the Tarahumara Formation.
The historic mines on the La Juliana property are of significant interest for gold exploration. Historic small scale mining has occurred in several small open pits which focused on high grade native gold in the late stage silica veinlets, as well as bulk mining of the silicified rhyodacites in relation to local and regional fault systems.
Modern exploration at the La Juliana prospect includes previous campaigns of mapping, soil and rock geochemistry, geophysics, and drilling by Chesapeake Gold Corp (2002-2003), Dasher Exploration Ltd. (2004-2005), and Pediment Exploration (2007).
The Juliana property consists of three concessions and covers an area of approximately 704 hectares. An area of 300 hectares has been covered by detailed exploration including trenching, geological mapping, soil and rock geochemistry, and IP/Resistivity geophysics and drilling.
Location & Geology
La Juliana consists of 700 hectares in east Sonora, Mexico. It is located 2 km from El Jabali which is also optioned by Urastar.
The La Juliana claim lies within the Sierra Madre volcanic province. It covers historic mine workings of interest for gold exploration. Mineralized structures at the La Juliana pit are exposed and consist of silicified vein breccias with abundant iron oxide (hematite), and with native gold filling late stage veinlets in the breccias.
Stratigraphic rock units that outcrop in the region range from Cretaceous to Quaternary in age and include sedimentary, volcano-sedimentary, and volcanic sequences with intrusive bodies of granodioritic composition and rhyolite emplaced during the Oligocene. Extensive hydrothermal alteration zones and gold mineralization in the area is associated with the youngest intrusive bodies. These strata overlie the northern edge of the Cortez basement terrane.
Structurally, the area is affected by two major fault systems: an older NW-SE direction and a younger NE-SW direction. In general, the faults can be attributed to tectonic basin and range extension. Curvilinear features often reflect intrusions emplaced during the laramide orogeny.
La Julianna hosts large areas of silica altered and brecciated rhyodacite, with associated coincident gold, antimony, and lead geochemical anomalies in both sill and fault bound environments. Silica alteration may be vuggy, granular, or patchy in texture, and is associated with illite, dickite, and alunite. Gold-rich zones are closely associated with hematitic silica breccias developed along faults oriented primarily N20W but also N70E.
Financial
In a signed Definitive Agreement, Urastar can earn 100% interest in the La Juliana Gold Project by making the following option payments over a 5 year period:
In addition, underlying owners will retain a 2% NSR royalty on the Property subject to the right of Urastar to purchase 1% of the NSR (namely a 1% NSR) for $1,000,000.00 for five (5) years after signing. The definitive agreement is subject to TSX Venture Exchange approval.
Payment schedule in USD:
$30,000.00 on signing Letter of Intent
$30,000.00 6 months after the signing
$30,000.00 12 months after the signing
$30,000.00 18 months after the signing
$30,000.00 24 months after the signing
$100,000.00 30 months after the signing
$100,000.00 36 months after the signing
$100,000.00 42 months after the signing
$100,000.00 48 months after the signing
$725,000.00 54 months after the signing
$725,000.00 60 months after the signing
$2,000,000.00 Total
La Juliana Drilling