For CRWV, research on the history of Gallo de Ora is hard to come by, as Stellar's work pre-dates NI 43-101 and therefore they were not required to publicly file detailed exploration results.
However, Stellar was an SEC registrant, which means they were required to disclose quite a bit of information in the US which was not disclosed in Canada. From the FY 1997 20-F Annual Report:
Mexican Property
Under the WIM Agreement, an initial payment of US$30,000 secured the property for a two-year exploration period with an option to renew for up to three years for US$10,000 per year. Additional amounts are payable as advances against the 10% net profits interest payable to WIM and the underlying owners, but the agreement provides for a cash buy-out of the net profits interest at the Company’s option.
The Company has recently completed the Phase I exploration program of geological mapping, geochemical sampling and trenching on the Mexican Property.
Initial soil sampling on pre-established grid (100 x 50m and 50x25m) covering most of the claim area outlined several gold geochemical anomalies following a north-northwesterly trending zone of about 1.5 km long. The individual anomalies range from a few meters to 150 meters long and up to 100 meters wide.
Trenching of the anomalies uncovered two significantly mineralized zones, both in the Dolorosa area. One zone was traced over a strike length of 50 meters east and west (and still open in both directions). The zone is composed of silicified breccia structure in highly sericitized dacite wall rock (up to 20 meters wide). Assays of the wall rock range from 0.4 to 4.9 grams per ton and average 1.8 gm of gold per ton, while the 4 meter wide silicified breccia averages 4 grams per ton of gold.
About 150 meters to the south, a quartz-sericite zone (underneath a geochem anomaly) striking north-south was exposed by a trench over an apparent width of about 16 meters. A series of 1 meter samples across the whole width of the zone showed gold values ranging from 1.7 to 17.5 gm/ton and averages 6 gm/ton. The extent of this zone will be verified by further trenching and drilling.
About 550 meters and 1,000 meters southeast are outcrops of silicified volcanic breccias with gold values ranging from 0.2 gm/ton to 39.0 gm/ton Au. These outcrops are located on the east shore of La Laguna Pichurri. Trenching in these areas did not reach bedrock. The extent of these mineralized zones will be verified by geophysical surveying and/or drilling.
Geologically, all of the mineralized zones are hosted by shallow intrusive bodies of dacitic composition intruding andesitic rocks. The mineralized zones display features of epithermal gold deposits.
Further exploration to consist of trenching, geophysical surveying and diamond drilling is planned for 1997. Estimated cost of the program is $160,000.00.
Mexican Property
Interest Owned or to be Acquired
The Company entered into the WIM Agreement dated July 19, 1996 with WIM to acquire the Mexican Property. The Mexican Property consists of four mining claims comprising approximately 1500 hectares located in western Mexico known as the Dolorosa, La Laguna I and II, Monterrey and Aguilla de Oro and the four enhancements thereto known as Mi Hijo, Mi Hija, Dos Esposas and Tres Niños comprising approximately an additional 1300 hectares. The WIM Agreement calls for an immediate cash payment of US$30,000 and provides for a net profits interest of 10% to be shared between the underlying owners (2%) and WIM (8%). This initial payment provides a two year exploration period with an option to renew for up to three more years for US$10,000 per additional year. Under the terms of the WIM Agreement, an aggregate of US$100,000 is payable as an advance on the net profits interest, of which US$10,000 is payable upon receipt of a title opinion satisfactory to the Company, and a further US$20,000 sixty days thereafter. The remainder is payable as to US$20,000 six months later and the balance on the first anniversary of the first advance. The agreement also provides for a cash buy out of the net profits interest at the Company’s option. The Company has paid to WIM the initial cash payment of US$30,000 as well as the sum of US$20,000 toward the advance on the net profits interest. However, the Company’s acquisition of the Mexican Property is not yet complete. The Company has not yet received from WIM or its Mexican counsel a legal opinion regarding the title to the Mexican Property since the documents providing the Company with title to the Mexican Property have not been prepared and executed to the satisfaction of such counsel. The Company is in the process of attempting to rectify this situation.
The Mexican Property may be or become subject to legal proceedings commenced by Core Engineering and Associates. See “Legal Proceedings – Core Engineering and Taurus Exploration”.
Mineralized Deposits
The property has in the past supported small scale production from high grade surface outcrops. An inspection team from the Company has visited the Mexican Property and carried out preliminary sampling. Surface samples taken from trenches showed values from three to five grams of gold and up to 65 grams of silver per tonne. The Company’s inspection team also found a wide zone of very highly altered dioritic rock with quartz stockwork containing 2.8 grams of gold per tonne over a sampled width of six meters in one pit area and 2.5 grams per tonne about 30 meters away. The Company has recently completed the Phase I exploration program of geological mapping, geochemical sampling and trenching on the Mexican Property.
Initial soil sampling on pre-established grid (100 x 50m and 50 x 25m) covering most of the claim area outlined several gold geochemical anomalies following a north-northwesterly trending zone of about 1.5 km long. The individual anomalies range from a few meters to 150 meters long and up to 100 meters wide.
Trenching of the anomalies uncovered two significantly mineralized zones, both in the Dolorosa area. One zone was traced over a strike length of 50 meters east and west (and still open in both directions). The zone is composed of silicified breccia structure in highly sericitized dacite wall rock (up to 20 meters wide). Assays of the wall rock range from 0.4 to 4.9 grams per tonne and average 1.8 grams of gold per tonne, while the 4 meter wide silicified breccia averages 4 grams per tonne of gold.
About 150 meters to the south, a quartz-sericite zone (underneath a geochem anomaly) striking north-south was exposed by a trench over an apparent width of about 16 meters. A series of 1 meter samples across the whole width of the zone showed gold values ranging from 1.7 to 17.5 grams per tonne and averages 6 grams per tonne. The extent of this zone will be verified by further trenching and drilling.
About 550 meters and 1,000 meters southeast are outcrops of silicified volcanic breccias with gold values ranging from 0.2 grams per tonne to 39.0 grams per tonne of gold. These outcrops are located on the east shore of La Laguna Pichurri. Trenching in these areas did not reach bedrock. The extent of these mineralized zones will be verified by geophysical surveying and/or drilling.
Geologically, all of the mineralized zones are hosted by shallow intrusive bodies of dacitic composition intruding andesitic rocks. The mineralized zones display features of epithermal gold deposits.
Further exploration to consist of trenching, geophysical surveying and diamond drilling is planned for 1997. The estimated cost of the program is $160,000; however, the Company will not incur such expenditures until the issues as to title to the property are resolved and the Company’s acquisition is completed to its satisfaction. This sampling work is preliminary work and should not be taken as indicative of the overall extent of the mineralization of the Property.
Core and Taurus did file suit against Stellar over the property, but as per the description from the 20-F, it was just a finders' fee dispute.
Core Engineering and Taurus Exploration
Pursuant to the Writ of Summons dated August 21, 1996 and a Statement of Claim dated August 25, 1996, filed with the Supreme Court of British Columbia on August 26, 1996, Ursel S. Doran and Peter H. Cowdery carrying on business as Core Engineering & Associates (“Core Engineering”) commenced an action in The Supreme Court of British Columbia against the Company. Core Engineering claims judgment in debt for $45,658.18. In addition, Core Engineering alleges that the Company is dealing with principals and properties in Mexico introduced by Core Engineering, and claims damages for breach of contract.
Pursuant to a Writ of Summons and a Statement of Claim filed on April 1, 1997, Taurus Exploration Ltd. and Ursel S. Doran, carrying on business under the name of Core Engineering, commenced an action in the Supreme Court of British Columbia. Core Engineering claims to have an interest in certain mining properties in the State of Nayarit, Mexico (near Acaponeta, Mexico) which have been leased to the Company by World Investments Ltd. of Mexico.
Both actions arise in connection with a contract dated May 30, 1996 between the Company and Core Engineering by which the Company engaged Core Engineering to assist the Company in acquiring mineral properties and establishing a business presence in Mexico. The Company agreed to pay Core Engineering $10,000 per month for a period of six months commencing May 30, 1996 together with Core Engineering’s expenses and other consideration for each property acquired.
On or about July 10, 1996, the Company cancelled the retainer of Core Engineering due to Core Engineering’s failure to perform its duties.
Having consulted with its legal counsel, the Company believes that the actions commenced by Core Engineering is without merit, and has issued Statements of Defence and will vigourously defend the actions.
In the end, Stellar didn't consider the Mexican property worthwhile, which is not surprising considering the small amount of money they paid for the interest. Their Philippine Nickel laterite properties were considered to have much more potential, but like many other laterite explorers in the 1990's, they eventually flamed out over costs and recovery rates and could not be developed economically at that time.
AI
