Most exploration companies would be very happy to have delineated a high grade – low strip ratio pitable 43-101 silver resource pretty much as soon as they began to explore their property. For Marcio Fonseca, CEO of Goldplay Exploration (V.GPLY), that was just the beginning.
Goldplay holds a concession called San Marcial in Sinaloa, Mexico, in a historical multi million ounce mining district named Rosario next to major players such as Fresnillo and First Majestic. The concession is 1,250 hectares and it runs 6.0 kilometers along a gold-silver mineralized trend. The 43-101 compliant resource was found in the first 500 meters of that trend. Fonseca was, and is, pretty certain that there are other, valuable, mineralized areas within the concession, within the already defined additional 8 targets in the 6 km trend
On July 10 Goldplay put out a press release announcing that it had encountered a broad, high-grade gold (Au) zone, on surface, at the Nava Target, 300 m along strike, west of the original gold bearing Nava trenches. In that release Fonseca states, “A high grade gold zone containing 24 m at 2.11 g/t Au, has provided the Company with encouragement that the Nava target could host a significant body of gold mineralization in a low sulphidation epithermal system, with thickness and grades attractive for potential low cost open pit development. Located west of the previous Nava trenches, it opens up a large unexplored area between the trenches and along strike for additional exploration potential for new discoveries in the San Marcial Project. The drilling program in progress will test below these two Nava target areas for depth continuity and additional understanding of the mineralized system.”
In a phone interview, Fonseca elaborated, “This is a brand new discovery. We did the basics and we found brand new gold mineralized showings at surface. No one knew it was there. It is 300 meters away from where the artisanal miners are working, showing typical textures of a wide low sulphidation epithermal system.”
In the press release Goldplay states, “There is a common presence of many high-grade gold results of up to 10 g/t Au from previous channel sampling in shallow historical underground tunnels at the Nava discovery and they have been followed up by high-grade gold in surface channel sampling along strike, up to 9 g/t Au, suggesting the possibility of a significant expansion to the size of the Nava Target and defining an immediate drilling target.”
“We are also doing surface work to identify additional targets in the same zone,” said Fonseca. “We have a wide zone. 24 meters of 2.1 gpt gold which is open West to East. Now we need to drill. 150 meters below surface.
For Fonseca these results are a call to action, “We’re drilling right under the trench.”
In fact, the drilling program which was initiated one month ago as part of the resource expansion program is proving positive. “We’ve completed the first drill hole, below another target where surface trenching reported 56 m @ 196 g/t Ag, ” said Fonseca. “We have the samples in the lab and we are waiting for results. We are pretty sure the mineralization is there”.
“If you look at Figure 5 in our most recent press release. Target #1 is our silver resource, and next to this target is #2 where we have just completed first hole ( 280 m long) expanding resources into Faisanes. Target #3 is the Nava gold zone we have found and are drilling. We think it may be connected to targets #9 and #8,” said Fonseca. “These are new targets we’ve developed. We think there is gold there. We’re the first company to drill in the area in at least ten years.” The Exploration team is discovering more gold mineralization at targets #5 and #6 in a geological setting that resembles dacite-rhyolite dome systems typical to host multimillion ounces deposits.
Finding gold as gold’s price is firming is exactly the boost that a junior explorer needs.
“The geology at San Marcial looks a lot like El Barqueno,” said Fonseca. “Agnico Eagle bought the company for $205 million in 2015.” Along with being a professional geologist, Fonseca was an investment banker for years. He knows how to do the comparable valuation. Right now, Goldplay has a market cap of $6.15 million.
“We have a series of NDAs signed with producers,” said Fonseca.
“Right now, we are doing the Phase One drilling,” said Fonseca. “A thousand meters but we have the drill on site. We’re planning six drill holes, but we have all permits and authorizations to drill 69 holes and we have recently completed an oversubscribed financing without warrants.”
What all this adds up to is a steady news flow from a very prospective, gold and silver, near-surface targets in a property to define new discoveries and expand the current resource.
Some time ago I interviewed Fonseca and he told me that his only question when looking at a property was, “Is this a mine?” Right now, the indications at the San Marcial Project are that there are at least two potential mines. With more to follow.
But that is the surface, is there serious host rock? Do these resources and potential deposits come from the same system?
We’ll await the news but Fonseca knows what he is looking for, “Is this a mine?”