Shoshone's Mexican Assets - Bilbao Project
The Bilbao Property is located in southeastern Zacatecas State, Mexico. It lies within the Panfilo Natera Mining District, approximately 350 miles northwest of Mexico City and 35 miles southeast of the city of Zacatecas.
The Panfilo Natera district is ancient. High-grade, silver-bearing ores were discovered and initially exploited in 1600. A significant amount of mining was completed on the Bilbao Property between 1900 and 1927 by the International Mining Company (Consejo De Recursos Minerales, 1992). Additional work may have been done on the property from 1939-1945. No significant mechanized work is known to have been completed after 1945. The Bilbao Property was controlled by Frisco from 1945-1967 and Penoles from 1967 to 1991 (Kilborn, 1995).
An estimated one million tons have been mined from underground workings and two glory holes (Kilborn, 1995). High grade mineralization was followed to exploit direct shipping ore. There is no evidence of drilling on the property. Documented mining has been conducted only to a depth of 250 feet (76 meters) where sulfide ore was encountered.
Two primary types of mineralization are found on the property. Distal copper-lead-zinc-silver pyroxene skarn mineralization has been documented within altered Cretaceous Age carbonates near granitic intrusives. Hydrothermal veins, of secondary importance at this time, are hosted by both the granitic intrusive and the Cretaceous Age marine sediments. The zinc-lead skarn could grade laterally into both gold-bearing garnet skarn or massive zinc-lead replacement ores in carbonate rocks.
Oxidation has reached a depth of about 250 feet on the property, creating an upper oxide resource that may overlie a significant sulfide resource. Zinc, lead, copper oxides, copper carbonates and silver chloride minerals are found in potentially economic quantities within the oxide zone.
In March, 2006 Shoshone and Minco, Plc, entered into joint venture agreement covering exploration and development of the Bilbao property. Minco began a 10,000 foot drill program in late May with the second hole, B-6A, intersecting three zones of oxide and sulfide mineralization. The lowermost zone comprises 128 ft (estimated 115 ft. true width) of massive to semi-massive sulfide mineralization, including pyrite, galena and sphalerite mineralization. Preliminary assay results for the lower mineralized intersection prepared by SGS Laboratories have yielded a 50 ft intersection averaging 2.43% zinc, 0.56 ppm gold, 69.0 ppm silver, 0.29% lead and 0.37% copper. Within this mineralized zone a 30 ft intersection averages 3.45% zinc; and a 10 ft intersection averages 2.14 ppm gold and 81.0 ppm silver.
Table of preliminary assay results Hole B6A - SGS de Mexico, Durango, Mex.
From (ft) |
To (ft) |
length (ft) |
Au ppm |
Ag ppm |
Pb % |
Zn % |
Cu % |
734.90 |
739.82 |
4.92 |
0.12 |
120.00 |
1.04 |
6.41 |
0.16 |
739.82 |
744.91 |
5.09 |
0.06 |
26.00 |
0.33 |
3.10 |
0.08 |
744.91 |
749.99 |
5.09 |
0.04 |
24.00 |
0.19 |
2.61 |
0.27 |
749.99 |
754.91 |
4.92 |
0.03 |
2.00 |
0.06 |
3.04 |
0.30 |
754.91 |
759.83 |
4.92 |
0.01 |
2.00 |
0.04 |
2.79 |
0.28 |
759.83 |
764.92 |
5.09 |
0.05 |
20.00 |
0.06 |
2.83 |
0.23 |
764.92 |
770.00 |
5.09 |
2.65 |
24.00 |
0.08 |
1.89 |
0.28 |
770.00 |
774.92 |
4.92 |
1.61 |
141.00 |
0.27 |
0.17 |
0.72 |
774.92 |
779.85 |
4.92 |
0.54 |
156.00 |
0.55 |
0.95 |
0.41 |
779.85 |
784.93 |
5.09 |
0.48 |
182.00 |
0.38 |
0.50 |
0.99 |
In early August, a second drill hole, X13, collared approximately 100 meters to the west of hole B6A intersected a 35.00 meter thick zone of sulfide mineralization containing zinc, silver, lead, (galena, sphalerite and chalcopyrite) occurring between 166.95 and 201.95 meters. There are currently 3 diamond drill rigs operating on the Bilbao property.
Table of preliminary assay results hole X13
From (m) |
To (m) |
Zn (%) |
Pb (%) |
Cu (%) |
Ag ppm |
168.95 |
170.95 |
6.00 |
7.93 |
0.28 |
31.0 |
172.95 |
175.95 |
14.38 |
10.54 |
1.19 |
224.0 |
180.95 |
183.95 |
6.75 |
5.50 |
0.37 |
204.0 |
186.95 |
190.95 |
5.77 |
5.53 |
0.26 |
48.0 |
192.95 |
200.95 |
6.33 |
5.31 |
0.33 |
49.0 |