Description of the Sesgalete Project

The Sesgalete Project is in the Department of Antioquia, in the north east of Colombia, in the town of Gomez Plata, it´s only two hours from Medellin wich is the capital of Anquioquia. The road is paved until the town, the trip takes one and a half hour, then is necessary to take a secoundary road for about fifteen minutes to the project. 

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The project is geologically located on the regional unit called Antioquia Batholith wich has been known for have mineralized areas where companies like Anglogold Ashanti and Reg Eagle have developed projects like Gramalote, Antioquiagold and San Ramon, the last one is almost ready to produce. Also the project area is one of the historic gold production areas of Antioquia, there are mining works since 1600. 

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The Sesgalete project is ubicated in a mining property of Morocotagold S.A.S. This company is the owner of at least 3000 hectares in this area. The company also has a processing plant with the capacity of 100 tons per day. 

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Highlights of the Reconnaissance

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• The samples for Sesgalete vein have at least two diferent behaviors, structure without mineralization and structure with mineralization. 

• The average value for the structure without mineralization is 3.2 gr/t of gold and 66.63 gr/t of silver.

• The average value for the structure with mineralization is 9.2 gr/t of gold and 472 gr/t of silver.

• The highest value for gold is 27,75 gr/t and for silver is 1099.3 gr/t.

• The vein is continuous for over a mile and is parallel to the regional fault systems. On surface and underground in tunnels it is possible to follow the structure.  

• The mineralization is hosted in a rock classified as very good in terms of stability wich is usefull in undergroud developments. 

• Seven more veins were identified and are programmed for further study giving the property a high potential for growth.

 

Advances of the Scoping Economic Study

• The price of gold is set at USD$1100 per troy ounce and USD$10 for troy ounce of silver.

• The operation is projected to 30 tons per day in a period of ten years on the sole Sesgalete vein. There will be space for greater expansion mining goes deeper.

• The recovered grade of gold is estimated in 8 g/ton and 400 g/ton of silver.

• Operational costs USD$ 500 per troy ounce.

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Social approach

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Sustainability, human capital and occupational safety are key components for the management of the project. In accordance to the new bussiness models, the develop of enviroment and social potencial create new opportinuties. 

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Location of the Property

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The Sesgalete project is located in Gomez Plata town, the mine site is 2 miles west from the town. 

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Infrastructure

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Morocotagold has a processing plant, tailings pand, energy supply, water supply and the vecinity of the town provides hospitals, shools and is a source of work force given the mining culture of its people. 

 

 

Geology

The mining gold district in wich is located Sesgalete project is a vein type deposit. Wich has been mined since 1600 by natives. Gold mineralization is hosted within granodiorite and tonalite of Antioquia Batholith. This unit is considered de core of the Colombian´ s Central  Cordilleta part of Andean belt. For mineralizations in this area a clear structual control has been established. The Sesgalete vein consist of at least 80NE striking subvertical auriferous vein cointains quartz, sulphides, carbonates and sulphosalts.  The veins in the district share similar settings like the presence of fault zones join with quartz veins.  

 

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Sesgalete Vein

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The Sesgalete vein is one of several vein type ocurrences that have been reported in the district and is the one with more historic reports. The geological reports started in 1911. The mining works on the vein were production tunnels since 1970. The exploration activities for the structure includes geophysical resistivity data wich let see the continuity on the strike of the mineralized structure. The paragenesis that show the mineralization is charaterized by quartz, pyrite, chalcopyrite, azurite, malaquite and the entire fault zone. The veins´ trend has a close relationship with the regional strultural control, the ore body is considered as fault fills shears or fractures which define a belt that follow regional faults systems, this mineralization style includes stockworks, breccias and mylonites meaning brittle and ductile conditions. 

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