Location: Los Bajios is about 6 kilometers southwest of the Estrella Pit and 3 kilometers west of the leach pads.
Geology: Los Bajios is a zone of extensive alunite alteration contiguous with the El Halcon alteration to the southwest and La Dura to the north. The property contains both silicified multi-stage fragmental units similar to those hosting gold in the northern portion of the Mulatos deposit, and copper-gold mineralization and alteration similar to that found at El Halcon. Localization within a major structural zone is suggested by geologic relationships, and at least one major low-angle structure is recognized in the project area.
Both surface grid samples and down-hole alteration mineralogy indicate a strong silica-pyrophyllite association at West Bajios very similar to that at Mulatos. The pyrophyllite alteration is believed to be showing zoning toward the center of the system in the north-central portion of the project area, the current focus of exploration activities.
Activity: A reverse circulation program at West Bajios in 2004 encountered the thickest and deepest (greater than 300 m deep) intersections of silicic alteration and oxidation known in the region. Results were followed up in 2005 with a 3D-induced polarization (IP) survey to determine the extent of the mineralized zone and detect the roots of silicified breccias in the southeastern portion of the project area.
A second phase drilling program consisting of 20 reverse circulation holes and one deep core hole tested geologic and geophysical (3D-IP) targets as well as a new concept of northwest mineralization control, rather than a northeast trend as indicated from airborne geophysical data. Five contiguous holes at the extreme northwest edge of the drilled area encountered thick intercepts of oxidized vuggy silica-pyrophyllite alteration strongly anomalous in gold, with narrow potentially ore-grade intercepts. The area is problematic for drilling, with drill holes frequently terminated in the mineralized zone due to caving conditions, poor sample recovery and stuck drill steel. One core hole successfully penetrated the zone, but at slow drilling rates and high cost. Assay results are pending. Additional step-out holes at a different drill orientation are planned in 2006.
A limited first phase drilling program was completed in the Central Bajios area, located 1 kilometer east of the West Bajios area. Five holes (802 m) were drilled, which encountered a previously unknown blind zone of stratiform sulfide-bearing silicified breccia below weakly altered surface rocks. Up to 53 meters of sulphide-bearing silicified breccia were encountered, but assay results indicate only weakly anomalous (100-250 ppb) gold. The presence of the breccia over a large area suggests exploration potential, particularly if the structural source of the stratiform mineralization can be located. Additional geophysical surveys will be implemented in 2006.