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M-18 Gold Property, Argentina
On June 7, 2007 Young-Shannon Gold Mines, Limited (now Metallum Resources Inc.), signed an Option and Joint Venture Agreement to earn a 70% interest in the M-18 gold and silver property in the province of Chubut in Argentina from Silver Standard Resources Inc. The M-18 Property comprises 6,300 hectares measuring 9 km. east-west by 7 km. north-south.
Previous detailed geological mapping at 1:1,000 scale and rock outcrop sampling has identified a gold/silver-bearing epithermal vein system with intense alteration on surface defined in outcrop for at least 1.2 km. in strike length and 0.5 km. in width before becoming covered by alluvium. The system remains open in all directions at this time.
Gold assay results from 98 grab samples from systematic mapping distributed over the strike length from this program returned values ranging up to 4.63 grams/tonne gold and 47.20 grams/tonne silver. There were 38 samples grading in excess of 1.00 grams/tonne gold of which 28 samples had grades ranging from 1.00 to 1.99 grams/tonne gold, 6 samples grading 2.00 to 2.99 grams/tonne gold, 2 samples grading 3.00 to 3.99 grams/tonne gold, and 2 samples in excess of 4.00 grams/tonne gold.
Elevated epithermal pathfinder elements also occur over the entire length of the zone. For example, multiple samples assayed in excess of 1% lead, 0.1% to 0.3 % zinc, and 1% arsenic.
Property due diligence was carried out during February, 2007 by Greg Lipton, P.Geo., Young-Shannon's President, CEO, and Qualified Person. Geological mapping and geochemical sampling distributed over the exposed 1.2 km. strike length of the zone confirmed both the geology and the highly anomalous gold values obtained by Silver Standard. Gold assay results from 61 grab samples taken for property due diligence showed 21 samples grading in excess 1.00 grams/tonne gold of which 17 samples had grades ranging from 1.00 to 1.99 grams/tonne, 3 samples grading 2.00 to 2.99 grams/tonne, and 1 sample in excess of 3.00 grams/tonne. Similarly, epithermal pathfinder elements of lead, zinc, and arsenic were highly anomalous.
Metallum is extremely excited about the potential of this entire property. It has never been drill tested or undergone any systematic property scale exploration such as detailed geologic mapping, geophysics, or geochemistry. Metallum is planning an aggressive exploration program on the property in the near future commencing on the 1.2 km mineralized gold zone and ultimately expanding in surrounding terrain where extensive argillic alteration occurs.
Similar epithermal deposit models include Cerro Vanguardia (Argentina), Calcatreu (Argentina), and the Toodoggone district of British Columbia.
Metallum Resources Inc. is required to spend $US 1,000,000 over four years on exploration on M-18 to earn its 70% interest. Exploration expenditures on each anniversary date of June 04 will be $US 250,000 by the first anniversary, $US 500,000 by the second anniversary, $US 750,000 by the third anniversary, and $US 1,000,000 by the fourth anniversary. Likewise, cumulative option payments for the property will occur as follows: $US 15,000 on the first anniversary date, $US 25,000 on the second anniversary date, $35,000 on the third anniversary date, and $50,000 on the fourth anniversary date.
Location of Property
Location of Property
Location of Property
Gold Zone
Gold Zone
Gold Zone Silica Sinter
Gold Zone Quartz Stockwork Veining with Gold
More Quartz Stockwork Veining with Gold
Gold Zone Brecciation / Silicification with Gold
