Chihuahua State, Mexico

The Mogotes project covers 2,998 hectares in the Velardeña mining district in central Mexico. The project is located 65 kilometers southwest of the city of Torreon and just four kilometers southwest of Golden Minerals’ Velardeña mine.

The project covers a thick sequence of Cretaceous-aged limestone and calcareous clastic sediments of the Aurora Formation that have been intruded by a series of Tertiary-aged intrusions. Immediately to the north of the property, Peñoles is operating Mexico’s second largest zinc mine1 (the Velardeña Mine) that produced 80,000 tonnes of zinc and 700,000 ounces of silver in 20172 from a series of zinc-copper bearing skarns emplaced in the limestones along the contact with a Cretaceous-aged granodiorite stock.

Recent drilling by Peñoles appears to indicate that several skarn zones trend into the Mogotes project.

1 Noticieros GREM