Resource World Magazine

54 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 7 SOURCE EXPLORATION CORP. [SOP-TSX], a Canadian-based junior exploration and development company, is focused on their Las Minas skarn-hosted, gold-silver-copper project in the historic mining state of Veracruz, Mexico. The site is accessible via high- way and 15 km of rural roads and is located about 270 km east of Mexico City and 160 km west of the Port of Veracruz. Since developing option agreements at Las Minas about five years ago, Source has drilled approximately 16,000 metres and completed geophysical surveys and mapping to target mineraliza - tion within their six mineral concessions (in a 16 km 2 area). They are aiming to start a drill program in early 2017 to add 2,000 to 3,000 metres of definition and step-out drilling predominantly at the Eldorado-Juan Bran target (an open mineralized corridor extending 650 metres along strike and ~ 170 to 420 metres wide) to develop a maiden NI 43-101 resource estimate. Mining in the project area goes back to the Aztec period, when indigenous people mined gold to pay taxes to the Aztec empire. The property is littered with 30 historic mine sites dating from 1870 to 1910; with an old roaster, and mine adits serving as indi - cators. Hand sorting of ore was completed on site, and high-grade ore, reportedly averaging 15% to 30% copper and 20 to 40 g/t gold was shipped for smelting in Mexico or the US. Mining ceased after the Mexican revolution in the early 1900s and interest in the property did not pick up again until the 1970s when the Consejo De Recusos Minerales (geological survey division of the Mexican government) completed sampling and mapping in the area and concluded that the Las Minas area has potential for 80 million tonnes of mineralized skarn (non 43-101 compliant estimate). When Source Exploration acquired the prop - erty, diamond drilling had yet to be completed on site. As Brian Robertson, President and CEO, puts it, "It seems the property got lost in time. We are fortunate that we could take on a project at this early stage. I was given a report on the property, and was very surprised…that someone hadn't been working it. So I put together an option agreement…I was even more surprised when I went (to site and saw) the extent of [historic] workings and the mineralization at surface." Source has identified six mineralized targets that form the core of a mineralized skarn zone. Mineralization occurs where Cretaceous limestone recrystallizes to marble at contacts with Tertiary granodiorite to diorite intrusions. Drill and geophysical data indicate mineralization is part of a larger intrusive system that spans over 10 km 2 . Porphyry and epithermal intrusion related mineralization have also been reported at the Las Minas site. Highlights from the 2014 drill program at the Santa Cruz tar- get area indicated near surface intervals of high-grade gold, silver and copper mineralization at 3.6 g/t gold equivalent (AuEq) over 100 metres (includes 7.42 g/t AuEq over 40 m, and 24.11 g/t AuEq over 10 metres); 2.2 g/t AuEq over 90 metres (includes 3.1 g/t gold over 50 metres, and 4.4 g/t AuEq over 25 metres); and 3.0 g/t AuEq over 30 metres (includes 5.0 g/t AuEq over 15 metres). Gold equivalent calculations assume a metal price of US $1,200/oz gold, US $19/oz for silver, and US $3.00/lb for copper. Highlights of drilling at the Juan Bran and El Dorado zones include 1.6 g/t AuEq over 43 metres, and 4.4 g/t Au Eq over 6 metres (includes 13 g/t gold over 2 metres). Ownership at Las Minas is defined by two option agreements which were recently extended. Through its Mexican subsidiary, Roca Verde, Source can acquire a 100% interest in all of the Las Minas concessions through combined payment of US $1,450,000 (a 1.5% royalty is attached to both agreements). Financing of their drill program is in progress, and has been facilitated by Source Resources recently revised share structure, a 10 to 1 share roll back. They now have 8.8 million shares and a market capitalization of about $2 million. In addition, Source closed a tranche of non-brokered private placement consisting of 5.2 million units of the company at a price of $0.15 per unit for gross proceeds of $780,000. Robertson comments, "We have a sig - nificant project, and a very lean share structure – there are a lot of upsides for investors, the project and the company." n Diamond drill core from the Las Minas Project 160 km west of the Port of Veracruz, Mexico. The core shows sulphides associated with gold-silver-copper mineralization. Photo courtesy Source Exploration Corp. MINING Source Exploration plans more drilling for Las Minas prospect, Mexico by Laura Barker

• Cover