Gold and Silver in Querétaro, Mexico
The flagship property of Starcore International Mines is the San Martin gold and silver mine. The mine has been in operation since 1993 at 350tpd and currently operates at 850tpd. The mine was acquired by Starcore in February of 2008 from Goldcorp who had acquired the asset through the takeover of Wheaton River. The mine is an underground epithermal deposit with gold quartz based limestone and has an average gold grade of 2.31 grams and 18 grams of silver ( NI 43-101 2014 Dave Gunning, Joe Campbell). The historical production of the mine is over half a million ounces and the mine sits on 100% owned claim package of 12,992 hectares, which offers the upside of exploration and the possibility of discovering the source of the current mineralization.
The San Martin project is located 50 km east of the City of Querétaro in Querétaro State, and about 250km northwest of Mexico City. The city of Queretaro boasts a population of over 1 million people and is one of the safest states in Mexico. Major companies such as Bombardier Aerospace, Safran, Eurocopter, and Canada’s Héroux-Dvetek all have operations in Queretaro.
In 1982, the area of San Martin was declared a National Reserve; however, by 1986, Luismin (previous owner) had reached an agreement to conduct exploration/exploitation in the area. Mining began in 1993 at 300 tpd and the production increased on a yearly basis to the present rate of 747 tpd with the capacity of 900 tpd.
High grade mineralization was discovered at San Martin in the 18th Century, and is reported to have been mined over a period of 40 years; however, no production records exist. Between 1900 and 1924, an estimated 250,000 tonnes grading 15 g Au/t and 100 g Ag/t was reportedly mined. Mineralization occurs in Upper Cretaceous black limestone and calcareous shales of the Soyatal Mexcala Formation as electrum, and silver selenide minerals principally associated with quartz and to a lesser degree with calcite. The deposit is an epithermal, probably high sulphidation precious metal (Ag-Au) type (metal ratio Au:Ag at 1:10), related to a Tertiary dacitic/andesitic intrusive dome.
Mineralization is generally made up of breccia that commonly is concordant with a limestone/shale contact (in the San Martin and San Jose areas) which forms the relatively steeply dipping tronco deposits, these troncos contact the younger volcanic flows (dacite and ignimbrite) where they have formed the more horizontal manto portions of the deposit. The mineralized economic breccia grades from 30 g Ag/t to 250 g Ag/t. Exploration has been concentrated along the NE trending breccia zone however evidence of a northerly trend in area 30 leads us to suspect possible other structures together with 2.0 g Au/t to 30 g Au/t over widths that vary from 1.0 to 17.0 m but average 4.0 m.
At depth in the San Martin area the Guadalupe vein was found in late 2007. This vein is sub parallel with the San Martin segment is narrower, more vein like and somewhat higher grade than the San Martin structure at the same elevation. Drilling and lateral development are being used to prove reserves in this vein which indicates the potential for other similar structures.
Discovered in late 2007, this vein is a sub-parallel vein to San Martin located below level 8. Drilling and lateral development are being used to prove reserves in this area which indicates the potential for other similar structures.
Discovered in 2009, the SAM Vein was encountered on level 5 & 6 in Area 29. This vein is further west than previous ore bodies and may have been deposited along an unconformity in limestone, it strikes north where it has now been found in contact with the area 30 fault and dips up to the west.
Discovered in 2011 the western fault offset of Pilotos ore body and mined for a year at 3,000-5,000 tons per month with grades of 5-20 g/t. This area is limited in a real extent by faulted volcanic rocks and mining has now extracted most of these deposits with only small pillars remaining.
San Martin Footwall
Discovered in 2012 this area has been found to host several veins 1 - 5m thick generally dipping 20 degrees to the east and striking north/south. It has been found within 50 meters of main in the footwall of San Martin structure in the footwall which was previously thought to be exclusively shales. To date at least 4 veins have been found above level 4 in the northeast of San Martin and possibly 2 veins above level 2 further south. Some of the veins are vertical and some are dipping around 40 degrees. In general most are striking parallel to San Martin breccia.
Reserves and Resources for the San Martin Mine April 30, 2018
Starcore International Mines, San Martin Mine Mineral Reserves and Resources
As of April 30,2018
Total Proven and Probable
Total Inferred + Indicated
Total Ounces Contained
Inferred Mineral Resources are not known to the same degree of certainty as Mineral Reserves and do not have demonstrated economic viability. An 81:1 silver to gold equivalency ratio was used to calculate gold equivalent ounces. Erme Enriquez C.P.G., BSc, MSc., is an independent consultant to the Company. He is a qualified person on the project as required under NI 43-101 and has prepared the technical information contained in these estimates and has been reviewed by Salvador Garcia, P. Eng., and COO of the Company.
The assumptions used to arrive at this mineral resource varies slightly from previous rules defined many years ago. In recent years, with the involvement of different and newly added professionals to the mine site, these mining methodologies were changed due to:
- A greater percentage of production coming from narrow to wide steeply dipping vein structures.
- Sub-horizontal Mantos mineralized structures that were somewhat narrower than historical Mantos.
- Reopening and development of the footwall mineralization in old stopes where lower grade mineralization was not mined during times of lower gold prices.
Based on the above mining changes have been modified to improve tonnage and grade estimation. These are:
- Reserve cut-off grades are based on a 1.66 g/t gold equivalent.
- Metallurgical Recoveries were 88% gold and 55% silver.
- Minimum mining widths were 1.5 meters.
- Dilution factors are 20%.
- Gold equivalents are based on a 1:81 gold:silver ratio.
- Price assumptions are $1300 per ounce for gold and $16 per ounce for silver.
- Mineral resources are estimated exclusive of and in addition to mineral reserves.