Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF): New PEA and gold production draw nearer
Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF). has successfully defined a significant oxide gold deposit at shallow depths at the Cerro Caliche Project, Mexico. Cerro Caliche has a NI 43-101 compliant total mineral resources estimate of 440,000 ounces of gold equivalent at an average grade of 0.45 grams per tonne (g/t) gold equivalent.
Sonoro recently closed the first tranche of a C$3 million private placement by issuing 17,000,000 units at a price of C$0.10 per unit, for gross proceeds of C$1.7 million. The second tranche is expected to close shortly.
Around one-third of the proceeds from the placing are going towards funding a targeted infill drilling campaign at the El Colorado and Guadalupe Zones (Figure 1). These zones are located in the southwestern region of the property and contain large areas of higher-grade gold mineralisation.
Assay results from drilling in these areas include: 6.09 meters at an average gold grade of 21.581 g/t (SCR-044), 27.43 meters at an average gold grade of 5.36 g/t, including 4.57 meters at an average gold grade of 22.087 g/t (SCR-286), 3.05 meters at an average gold grade of 19.6 g/t (SCR-280), and 6.09 meters at an average gold grade of 14.167 g/t (SCR-307).
By focusing on these higher-grade zones initially, Sonoro could enhance the overall projects economics, making it more attractive to investors and potential funders.
A portion of the proceeds from the placing will also be used to complete a new Preliminary Economic Assessment (PEA) for a proposed heap-leach operation. Results are expected to be announced in the next quarter.
Sonoro plans to commence mining at Cerro Caliche based on the currently defined deposits. It will then use the cash generated from gold mining to fund future exploration at the project, ensuring minimal shareholder dilution.
The company commenced the permitting process last year and, once approved, will move to secure the financing required to commence mining. Sonoro's management team is well positioned to deliver on its near-term production strategy as the team has discovered, financed and developed 12 gold and copper mines in northern Mexico.
Despite the focus on production, Cerro Caliche has significant exploration upside potential with just over 30% of known gold mineralised zones defined by drilling to date.
At the 2023 Discoveries Conference held last month in Mazatlán, México, Sonoro’s VP of Exploration, Mel Herdrick, discussed the potential expansion of the project’s known low-sulfidation epithermal gold mineralisation.
Herdrick plans to target the partly drilled areas of Bellotoso and El Rincon zones in the north region of the concession, to investigate favourable boiling textures and rock types for potential higher gold grades and possibly greater vertical extent of northwest trending gold mineralised zones (Figure 2).
Sonoro has achieved significant milestones at the Cerro Caliche Project in Mexico. With a defined oxide gold deposit at shallow depths and a total mineral resources estimate of 440,000 ounces of gold equivalent, the project shows great promise.
Sonoro's management team, with their successful track record in the region, is well-equipped to execute the near-term production strategy and secure the necessary financing for mining operations. Additionally, the project holds substantial exploration potential, with numerous gold mineralised zones yet to be fully explored.
Figure 1 - 60km of Outcropping Quartz Veins
Source: Sonoro Gold Corp.
Figure 2 - Five Trends with Signifcant Exploration Targets
Source: Sonoro Gold Corp.