Starcore International Mines (TSX: SAM; US-OTC: SHVLF) holds a portfolio of assets that includes a producing mine and exploration and development projects in Mexico.
The Vancouver-headquartered miner “sits in an exciting position,” says Robert Eadie, Starcore’s president and CEO, “with a producing gold and silver mine, a large molybdenum-copper deposit, and newly acquired gold and silver claims, all located in mining-friendly jurisdictions.”
The company’s flagship property is the San Martin gold and silver mine in Queretaro state, about 213 km northwest of Mexico City.
The underground mine produced 2,600 oz. of gold and 19,800 oz. of silver (2,900 gold- equivalent ounces) for the three months ending July 2021. It has a ten-year mine life and contains proven and probable reserves of 1.65 million tonnes grading 2.11 grams gold per tonne and 33 grams silver per tonne for 154,382 gold-equivalent ounces.
“The mine continues to produce ounces and generates significant cash flow, as well as having considerable upside potential to unlock even more value for our shareholders,” said Eadie. “We now have C$5.8 million in the treasury and a strong working capital position, which we are deploying to acquire and explore new properties as well as expanding exploration at San Martin.”
Starcore is focused on advancing its Opodepe project in north-central Sonora state, about 95 km northwest of Hermosillo.
The state hosts several copper and molybdenum deposits, including the Buena Vista del Cobre mine, one of the largest copper mines in the world, and the La Caridad molybdenum-copper mine, both operated by Southern Copper (NYSE: SCCO), and the Cumobabi molybdenum mine, owned by Minera Cumobabi, S.A. de C.V.
“Sonora is considered the birthplace of Mexico’s large copper industry and Opodepe benefits greatly from its location,” said Eadie. “It can be easily accessed via a paved highway and all-season gravel roads and is close to a power grid.” The property comprises the 11,462-hectare El Creston project and the recently acquired Teocuitla gold-silver claims. These claims cover about 3,088 metres immediately adjacent to the El Creston Metztil 4 claim located in the northwest of the property.
To date, exploration of El Creston has included mapping, prospecting, geochemical and geophysical surveying, underground development, including five adits totalling 861 metres, and 241 core and 18 reverse circulation drill holes totalling 51,049 metres and 4,995 metres, respectively.
The work outlined a 5.5-km-long by 1.5-km-wide northeast trend that hosts molybdenum, copper, and silver mineralisation in the Creston Main-Red Hill deposit (El Creston deposit), Red Hill Deep, A-37, Red Hill West, Alejandra, and Copper zones.
“While El Creston is a well-defined molybdenum deposit, it has never been explored for precious metals before,” explained Eadie. “The newly acquired Teocuitla claims have allowed us to view the project under three different microscopes — a large molybdenum deposit; a project with the potential for copper porphyry at depth; and with the addition of the claims, a grassroots exploration project with gold and silver showings.”
In 2021, Starcore conducted extensive mapping of the area covered by the new claims and collected 1,600 samples in the outcrops of nine different vein systems identified on the property. Surface and stockpile samples returned mineralisation ranging from 0.09-0.21 gram gold per tonne and 147-241 grams silver per tonne.
The company now plans to undertake drilling on high priority targets identified on the Teocuitla claims, which is scheduled to start within the next few weeks.
“In addition to drilling the new claims staked, we are also developing an updated geological model of the El Creston deposit, with the primary purpose of assessing the potential for a copper porphyry orebody at depth,” said Eadie.
Starcore also owns the Ajax property in B.C., about 60 km south of Stewart, which hosts the Ajax porphyry molybdenum deposit.
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