SAN DIEGO PROPERTY
The 92 Ha. San Diego Property is located 75 km southwest of the city of Torreon, 4 km ENE of Golden Mineral’s San Juana Mine and 13 km NE of Penoles’ Santa Maria Mine in NE Durango State, Mexico. The property is easily accessible power and mining infrastructure nearby.
The property is approx. 20 minutes on a gravel road from a major 4 lane highway. The property is wholly owned by Golden Tag and is subject to a 2% NSR to Golden Minerals.
Deposit Setting
The Velardeña Mining District hosts quartz-calcite veins with associated silver, lead, zinc, gold and copper mineralization typical of the polymetallic, low-sulphidation epithermal deposits of northern Mexico.
The San Diego property is centered on a large Tertiary Diorite Stock which intrudes a thick sequence of Cretaceous limestone of the Aurora and Cuesta del Cura Formation.
San Diego Deposit
33,000 meters of surface diamond drilling has been completed on the property since 2005. Silver occurs with Lead and Zinc sulphides and Silver-sulphosalts in a variety of environments, including: numerous laterally and vertically continuous Carbonate Veins; stringer zones; disseminated zones; Carbonate replacement zones; Mantos and, at depth, very large Skarn Zones. SGS (Canada) Ltd., using a geo-statistical approach to resource estimation, completed a 43-101 Compliant Resource Study in 2013.
The study identified 23 different Mineralized zones and generated 34 3D-Block Models. Results from the study are shown in Table 1. The wide variety in style, width and grade of mineralization across the property was evaluated using appropriate cut-off grades related to narrow-vein mining, long-hole mining or large-scale bulk mining methods in Mexico.
Table 1. Estimated Mineral Resources, San Diego Project, Veldareña Mining District, Durango State, Mexico
(43-101 COMPLIANT REPORTING BY SGS, APRIL 2013)
| Indicated Resources | Cut-Off (g/t) | Tonnes (Mt) | Ag (g/t) | Pb (%) | Zn (%) | Ag. EQ (g/t) | Silver Only (M. oz) | Silver Equivalent (M.oz) |
|---|---|---|---|---|---|---|---|---|
| Bulk Zones | 52 | 14.80 | 51 | 0.65 | 1.17 | 94 | 24.07 | 44.51 |
| Oxide Veins | 133 | 0.31 | 211 | 1.15 | 0.90 | 234 | 2.110 | 2.33 |
| Suphide Veins | 52 - 125 | 1.37 | 123 | 1.23 | 1.85 | 197 | 5.43 | 8.68 |
| TOTAL | 16.48 | 60 | 0.71 | 1.22 | 105 | 31.61 | 55.52 |
| Inferred Resources | Cut-Off (g/t) | Tonnes (Mt) | Ag (g/t) | Pb (%) | Zn (%) | Ag. EQ (g/t) | Silver Only (M. oz) | Silver Equivalent (M.oz) |
|---|---|---|---|---|---|---|---|---|
| Bulk Zones | 52 | 28.65 | 46 | 0.67 | 1.08 | 88 | 42.44 | 80.69 |
| Oxide Veins | 133 | 0.29 | 238 | 0.81 | 0.91 | 261 | 2.20 | 2.41 |
| Suphide Veins | 52 - 125 | 13.10 | 93 | 1.41 | 1.83 | 171 | 39.17 | 72.23 |
| TOTAL | 42.04 | 62 | 0.90 | 1.31 | 115 | 83.81 | 159.93 |
Price Deck:
3-year tailing avg. Silver US$28.10/oz; Lead US$1.00/lb.; Zinc US$0.96/lb.
Cautionary Statement: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The potential quantity and grade reported as Mineral Potential, is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that is uncertain if further exploration will result in the target being delineated as a mineral resource.