Issue link: http://resourceworld.uberflip.com/i/554714
a u g u s t / s e p t e m b e r 2 0 1 5 www.resourceworld.com 37 are looking to grow. Our goal is to be a mining and ore-process- ing company in conversation with the community. We expect to gain credibility by operating." Much of the local mill feed, such as that from the Eladium Mine, consists of epithermal gold mineralization in quartz vein material. Small operations might show up with a pick-up truck full of loose rock or sacks adding up to a few tons (each short ton is about 800 kg). The miners can watch the entire transparent process, from measuring the weight to sampling to assaying. Within a day the mill would name a price. Say the mill feed is a standard 1 oz load, worth some US $1,180 per ton. For 10 tons, the mill might offer a price of around $5,900, discounted in order to cover milling costs and anticipated recovery factors. The cyanide then leaches gold from the milled rock and gold is absorbed by activated charcoal, which can then be separated with a sieve. The gold-laden char- coal can be sold as-is, or separated, sending the charcoal back to be re-used. Eventually the process will include making doré bars, which get a better price from refiners. Montan Mining also owns other exploration properties in Peru, but is now concentrating on developing its toll mill business at Mollehuaca. For instance, it holds the Alicia skarn and porphyry-hosted copper project in the Andahuaylas – Yauri belt, near Tintaya (where Michel Robert was start-up manager). In the exploration stage, currently on hold, its Saulito property is located in Arequipa not far from Eladium and Mollehuaca. n Morro Bay aiming to expand Peñoles resource in Mexico Morro Bay Resources Ltd. [MRB-TSXV] has been raising exploration funds by five-cent private placements in order to launch a follow-up drilling program on the Peñoles silver-gold project in the his- torically prolific Durango Silver Belt. In January 2014 Morro Bay acquired sierra Madre Developments [SMG-TSX] rights under its 2011 option agreement with Riverside Resources inc. [RRI-TSXV]. Morro Bay released a maiden NI 43-101 compliant resource estimate on April 16 this year and on May 1 the company exer- cised their right to acquire a 51% interest in the property. The Peñoles Project hosts a partially defined silver deposit known as the Jesus Maria and an adjacent, partially defined, gold deposit known as El Capitan, both of which may be amenable heap leaching. To date only 80 holes have been drilled. Based on 50 diamond drill holes totaling 7,004 metres, the El Capitan Gold Zone hosts an inferred resource of 20.7 million tonnes containing 305,000 ounces of gold with an average grade of 0.458 g/t gold and 1.83 million ounces of silver averaging 2.8 g/t silver. Based on 30 diamond drill holes totaling 3,114 metres, the Jesus Maria Silver Zone hosts an inferred resource of 7.6 million tonnes containing 15.15 mil- lion ounces of silver averaging 62.3 g/t silver and 26,000 ounces of gold averaging 0.105 g/t gold. The envisaged floating cone pit shells at both deposits extend for most of the strike length of the deposits and reach depths of 150 metres below surface. Carl von Einsiedel, P.Geo, Director and VP Exploration, told Resource World that the known mineralized zones have only been partially drilled off leaving good potential to discover extensions along strike and to depth. For the 2015 exploration program, Morro Bay plans to complete 2,000 metres of drilling in approximately 20 holes to test for extensions of the Jesus Maria sil- ver deposit and to carry out infill drilling. Roughly half the holes would be drilled between the current western limit of the Jesus Maria Silver Zone and the El Capitan Gold Zone to determine whether the two zones merge into a single, larger min- eralized zone. Data from this work will be used to advance the project toward a Preliminary Economic Assessment. Preliminary metallurgical studies have been carried out on diamond drill core and demonstrate that the gold and silver values can be recovered either by flota- tion or by whole ore cyanide leaching at Jesus Maria and by cyanide leaching at El Capitan. As of mid-June, the company had raised $248,500 with further financings in progress. To date, over $9 million has been spent on the project. Einsiedel expects field work to start again in August with drilling slated to start in September. n November 4 - 5. 2015 ToroNTo, CaNada Organized by www.worldminingsummit.com Contact: Lawrence.smithson@americanleaders.com