EXPLORATION ’95 — Valdez active along Mexico’s Altar gold

In recent months, Valdez Gold (VSE) has been assembling a large land position within the Altar gold trend, a geologic province in Mexico’s Sonora state which is viewed as having similarities to gold-producing regions of the southwestern U.S.

Valdez President Peter Walker reports that the trend has structural, stratigraphic and metallogenic characteristics which are similar to those of the region in southeastern California that hosts Santa Fe Pacific’s Mesquite gold deposit, the Cargo Muchacho mine and Glamis Gold’s Pichacho deposit. Last November, Valdez commissioned a consultant familiar with Mesquite and Carlin-type geology to conduct a reconnaissance evaluation on parts of the company’s holdings in the Altar Desert. Valdez’s interest was triggered by several new discoveries and mine developments made recently in the region by major Mexican and North American companies.

Specifically, the junior cites the new La Herradura and Chanate discoveries owned by Newmont-Penoles and Independence Mining, respectively. Both deposits are unofficially reported to contain more than 1 million oz. gold and are still being expanded. At presstime, Newmont reported an oxide resource of 65.9 million tons grading 0.037 oz gold per ton for its 44% owned La Nerradura project.

La Herradura is considered to be a Mesquite-type deposit and Chanate is reported to be of the Carlin type. Valdez says its lands are positioned along strike and between, or adjacent to, these new gold resources. The company’s land acquisition campaign is nearing completion, and so far covers an area of more than 250,000 hectares, which Valdez says is “the largest known consolidated landholding in the state.”

Based on the report of its consultant, Valdez says at least four Mesquite-La Herradura type exploration targets have been recognized on its land package. These targets are reported to have revealed anomalous-to-ore-grade gold values from sampling of old mine workings and prospects.

The report also suggests that Carlin-type potential was indicated in areas where gold values from limestone host rocks were collected. These samples contained a typical Carlin-type suite of anomalous trace elements and base metal values.

Also recognized was a gold target area which is believed to be a gold-bearing acid sulphate system similar to that of the Goldfield district in Walker Lane, Nev.

In total, the report identified at least six recognizable gold exploration targets. The junior is engaged in discussions with major Mexican and North American mining companies concerning the possibility of joint-venture participation on various parts of the property.