- Holds the Cerro Caliche gold project and owns the San Marcial properties in Mexico
- Developing heap leach mining operation Cerro Caliche alongside 10,000 meter drill program
- Planning to establish initial mining operation at Cerro Caliche after upbeat PEA
What Sonoro Gold does:
Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF). is an exploration and development company holding the near-development-stage Cerro Caliche project and the exploration-stage San Marcial properties in Sonora State, Mexico.
The company has highly experienced operational and management teams with proven track records for the discovery and development of natural resource deposits.
Sonoro is currently focused on developing a heap leach mining operation (HLMO) at its 1,400-hectare Cerro Caliche gold concession - where exploration has confirmed a broadly mineralized low-sulphidation epithermal vein structure with multiple gold mineralized zones along trend and near-surface.
In 2018, Sonoro entered into option agreements to acquire a 100% interest in Cerro Caliche, which is strategically located between two world-class mining districts and surrounded by several gold-silver mining operations, including Equinox Gold (TSX:EQX)’s Mercedes mine and Agnico Eagle’s advanced Santa Gertrudis project. The company has drilled 314 holes and assayed over 34,500 meters.
The 100%-owned San Marcial project covers over 1,000 hectares. Concessions surround the sites of the original mine workings of the San Marcial and Soledad mines were active in the early 1900s. Both mine areas have yielded samples showing high-grade gold and silver mineralization, with broader low-grade disseminated zones to stockwork forms of mineralization.
How is it doing:
In September 2021, Sonoro achieved a milestone by releasing an independent Preliminary Economic Assessment (PEA), including an updated Mineral Resource Estimate, on Cerro Caliche, confirming the property’s economic potential.
The PEA’s release built on the company’s announcement in August 2021 that column metallurgical test results from Cerro Caliche returned an average recovery rate of 74% for gold (Au).
Crucial PEA highlights include, among others: Pre-tax net present value of US$68.7 million, 7 years Life of Mine (LOM) producing 323,500 ounces (oz) of gold equivalent (AuEq), and All-In Sustaining Cost (AISC) of US$1,351/oz AuEq.
As for the updated mineral resource, utilizing the same 0.207 grams per ton (g/t) Au cut-off grade, there were measured and indicated resources of 349,000 ounces (oz) of gold at a 0.41 g/t Au grade; updated inferred was 71,000 oz at 0.40 g/t Au grade.
Moreover, the range of the potential mineralization is believed to be from 19,250,000 to 34,370,000 tons containing 204,000 oz to 365,000 oz of gold;1,683,000 oz to 3,005,000 oz of silver.
The company said the results support management’s strategy to develop a HLMO at Cerro Caliche, which has an operating capacity of up to 15,000 tons per day (tpd).
As a result, the company plans to resume drilling at Cerro Caliche as it expands the project's mineralized zones and targets potentially higher-grade near-surface mineralization.
The company will run a 10,000-metre (m) reverse circulation (RC) drilling campaign alongside the proposed HLMO development. The six-month Fall 2021 drilling program will focus on expanding the project’s oxide gold mineralization included in an updated resource estimate as well as potential higher-grade targets recently identified by a surface sampling program.
Sonoro also plans 705m of infill and expansion drilling at the El Colorado corridor where previous drilling returned higher-grade results including drill-hole SCR-044 which intercepted 12.19m averaging 11.2 g/t of gold, including 6.1m averaging 21.58 g/t gold. A further 1,230m of drilling is planned along the El Colorado/La Ventana corridor.
Management hopes to establish an initial mining operation at Cerro Caliche to generate funds for more exploring and the development of the project’s potential.
Inflection points:
- Resume drilling at Cerro Caliche
- Expand and categorize flagship project
- Create mining operation at the property
What the boss says:
“This program has been under development since we paused drilling in May 2021,” said Sonoro Gold CEO Kenneth MacLeod in a statement announcing the company's plans to resume drilling at Cerro Caliche.
“We maintain our strategy to expedite the commencement of operations to generate cash flow that will contribute to further drilling to increase the project’s potential.”
Contact the author: patrick@proactiveinvestors.com
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