San Marco Resources Inc.

San Marco Resources Inc.

December 08, 2009 08:30 ET

San Marco Resources Acquires 100% Interest in El Tecomate Gold Project in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2009) - San Marco Resources Inc. (TSX VENTURE:SMN) is pleased to announce it has entered into an agreement with Chesapeake Gold Corp. for the acquisition of the El Tecomate gold/silver project in Mexico.

El Tecomate is located in Durango State, Mexico, within the Sierra Madre Occidental range which hosts numerous prolific precious metals systems. As is the case at famous caldera-related precious metal systems like Round Mountain, Nevada and Creede, Colorado, the precious metal systems so far identified at El Tecomate are epithermal and low sulphidation in nature. The 1,195 hectare project is roughly a one hour drive south-east from Mazatlan, and a further two hour drive from the town of Rosario along paved and maintained gravel roads. The Trinidad mine project, where Oro Gold Resources Ltd. is currently active, is located approximately 25 km to the south.

San Marco has applied to the Mexican mining authorities for a 4,735 hectare concession contiguous to the El Tecomate project. This new area covers prospective exploration targets similar in nature to the El Tecomate concessions and gives San Marco a total of 5,930 hectares in the structural corridor.

Terms of the purchase from Chesapeake on closing are;

  • $(US) 75,000 cash
  • 400,000 shares of San Marco
  • 1% NSR royalty on the El Tecomate project and all concessions within 5 km of its perimeter

Closing of the purchase is subject to formal execution of certain documents and stock exchange approval.

Chairman Robert Willis states, "We are delighted to have an opportunity to assemble and explore a relatively large land position in an area of Mexico that has demonstrated to have very significant gold and silver deposits. San Marcos' on-site work during our due diligence process has confirmed Chesapeake's results to date. We believe that with additional detailed exploration, and a broader view of the entire caldera system, Tecomate could become a very valuable asset to San Marco shareholders."

Mineral systems identified so far at El Tecomate occur within a structural corridor approximately 1.5 km wide and at least 4 km long. This corridor is interpreted to be the margin of a caldera or superimposed collapsed calderas. Numerous artisanal workings occur within the corridor and were focused on north-west trending shear veins, sheeted veinlet zones and breccias that occur within zones of phyllic altered volcanics up to 200m wide.

Currently three mineralized zones have been identified at El Tecomate – Main Zone, Southeast, and Cerro Colorado (El Tecomate Map). Highlights of sample results reported by Chesapeake are:

Main Zone

  •  0.95 g/t gold over 47.9m (continuous 3m chip samples)
  •  1.14 g/t gold over 36m (continuous chip samples), 130m to the east of above area
  •  Individual grab samples along strike within Main Zone up to 21.96 g/t gold
  •  9.46 g/t gold, 36 g/t silver, 1.1% lead, 1.86% zinc, 500m north of Main Zone, from old workings (grab sample)

Southeast Zone

  • Located one km south-east of the Main Zone, no old workings identified so far
  • 0.86 g/t gold and 23.6 g/t silver over 30m (consecutive 3m chip samples)
  • 500m to the south of the Southeast Zone, grab sample 0.74 g/t gold and 34 g/t silver

Cerro Colorado Zone

  • Located 500m south of the Main Zone, no old workings identified so far
  • 23.3 g/t gold over 2m in an area of limited exposure.

Artisinal workings at El Tecomate are not limited to the Main Zone. At least four other areas 2-3 km away remain to be explored. Modern exploration has been limited to rock chip and soil sampling that focused almost exclusively on the Main Zone. Current chip channel sampling has been limited by dense vegetation and talus cover in typically relative steep terrain of the Sierra Madre Occidental.

The geology of the El Tecomate project is not yet well understood, however it is known that metals of economic interest occur within the "Lower Volcanics" predominantly andesitic of nature, similar to other productive mines in the area.

San Marco intends to immediately commence road construction and potential drill pad sites to currently known mineralized zones as well as to new prospective areas. Significant drill targets are known to exist as a result of interpretation of current exploration data.

The technical information contained in this press release (other than information obtained from press releases issued by Chesapeake) has been based on information prepared by, or under the supervision of, San Marco's CEO, Robert D. Willis, P. Eng., a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. He has verified the data disclosed, including sampling, analytical and test data, underlying such technical information.

San Marco Resources Inc. is a Tier 2, TSX Venture Exchange company (trading symbol SMN), with 14,363,675 shares issued. Its 100% owned Alwin Copper Mine is located in south-central British Columbia, to the west and contiguous to the Highland Valley Copper mine operated by Teck Resources Ltd. which has an annual production of 160,000 tonnes of copper.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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