Under the terms of an Option Agreement, Cortez Gold Corp. can acquire 100% of the issued and outstanding shares of Minera Ligia which holds an option to purchase a 100% interest in the Real de Guadalupe polymetallic gold-silver-copper-zinc-lead project in Guerrero State, Mexico, 40 km northeast of Zihuatenejo.
The Real de Guadalupe property is located in Guerrero State, Mexico, 40 km northeast of Zihuatenejo, and is comprised of mining concessions totaling 600 hectares. Mineral exploration and extraction on the property date back to the 1830's when Spaniard colonials exploited the near-surface oxidized ores zones; all mining ceased once the sulphide-zone was reached. The mines were rediscovered and re-worked between 1835 and 1990 by various parties until a local group assumed control of the claims.
The distinguishing characteristics of the system include a metallic association (Au, Ag, Pb, Zn, Cu) typical of the petrology of an andesitic environment in the Sierra Madre del Sur, and a mineralogy characterized by sulfides, sulfosalts, tellurides and native precious metals. The Real de Guadalupe property is a vein system with potential breccias and stockwork zones, while the ore deposits consist of polymetallic veins. Mineralogy includes: gold, argentite, hessite, pyrite, galene, sphalerite, freibergite and chalcopyrite. Interestingly, the morphology, temperature, and compositional characteristics of the veins in the district are similar to other polymetallic and precious metal deposits found in northern and central Mexico.
Exploration objectives are to prove the potential of the known polymetallic veins through a comprehensive geological property assessment and evaluation consisting of surveying, geological mapping and sampling, and historical mine re-development and cleaning. Identifying vein extensions, as well as exploring the non-explored veins and disseminated zones will hopefully lead to an increase in targets for further investigation. Drilling could then be used to test identified zones or targets.
**This Company update includes certain statements that may be deemed "forward-looking statements". Although the Company believes the expectations expressed are based on reasonable assumptions, such statements are not guarantees of future performance; actual results or developments may differ materially from those denoted. Accordingly, readers are cautioned to not place undue reliance on forward-looking statements.**