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significant activity on this stock....
3.5 million shares on the TSX exchange with 855k shares trading today...
if the SEMARNAT's approval soon occurs further interest in sonoro gold should be
forthcoming...
VANCOUVER, Canada, October 16, 2023 – Sonoro Gold Corp. (TSXV: SGO | OTCQB: SMOFF | FRA: 23SP) (“Sonoro” or the “Company”) is pleased to report the filing of a technical report titled “NI 43-101 Technical Report for the Preliminary Economic Assessment on the Cerro Caliche Project, Sonora, Mexico” (the “PEA”) with an effective date of August 28, 2023.
The PEA has been prepared in accordance with the requirements of National Instrument 43-101 (“NI 43- 101”) by D.E.N.M. Engineering Ltd. of Burlington, Ontario (“D.E.N.M.”) and Micon International Limited of Toronto, Ontario (“Micon”) with confirmation of the applicable resource estimates prepared by SRK Consulting (U.S.) Inc. of Denver, Colorado (“SRK”).
PEA Highlights:
Pre-Tax net present value discounted at 5% (“NPV5”) of USD $71.4 million
Pre-Tax Internal Rate of Return (“IRR”) of 59%
After-Tax NPV5 of USD $47.7 million with an IRR of 45%
Gold recovery of 72% and silver recovery of 27%
9-year LOM with 297,575 ounces (“oz”) of gold equivalent (“AuEq”)
LOM annual average production of 33,000 oz AuEq at 0.45 g/t AuEq
Initial CAPEX costs of USD $15.5 million, including USD $1.83 million in contingency
Sustaining capital costs of USD $15.5 million
Cash(1) operating costs of USD $1,295/oz AuEq
AISC(2) of USD $1,395/oz AuEq
Payback period of 2.9 years
Note: All currencies are reported in U.S. dollars. Base case parameters assume $1,800/oz gold and $23/oz silver.
(1) Cash operating costs include mining, crushing, processing, assaying and administration.
(2) All-in-Sustaining Costs include cash costs plus sustaining, refining and reclamation costs, as well as 2% royalty buyout.
Mineral Resource Estimate
The PEA utilizes the updated Mineral Resource Estimate (MRE) contained in the technical report prepared by SRK and titled “NI 43-101 Technical Report: Mineral Resource Estimate, Cerro Caliche Project, Sonora, Mexico” with an effective date of January 26, 2023 and report date of March 24, 2023. The updated MRE is based on a total 55,360 meters of drilled data, including 498 drill holes, 17 trenches and assays for 53,865 meters of the drilled data.
PEA Summary
The PEA is preliminary in nature and includes inferred resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the estimates presented in the PEA will be realized.
The PEA demonstrates the potential viability for a nine-year life of mine (“LOM”), open pit, heap leach mining operation with an initial two-year production rate of 4,000 metric tonnes per day (“mtpd”) and an increase to 12,000 mtpd for the remaining LOM.
The PEA can be found under the Company’s profile at www.sedarplus.ca and on Sonoro’s website at www.sonorogold.com.
Qualified Person Statement
David Salari, P.Eng. of D.E.N.M. Engineering Ltd., Christopher Jacobs, CEng, MIMMM, Kerrine Azougarh, P.Eng. and William Lewis, P.Geo. of Micon International Limited, and Doug Reid, P. Eng. of SRK Consulting (U.S.) Inc. are independent of the Company and are Qualified Persons as defined in NI 43-101.
Sonoro Director, Stephen Kenwood, P.Geo., is a Qualified Person within the context of NI 43-101 and has read and approved this news release.
About D.E.N.M. Engineering Limited
D.E.N.M. Engineering Ltd. is a niche engineering company servicing the mining / mineral processing sector that specializes in Engineering & Design, Equipment Supply, Project & Construction Management, Commissioning and Operations Support. D.E.N.M. Engineering Ltd. has proven success while championing projects for over fifteen years in Canada, USA, Mexico and Central America.
In addition, D.E.N.M. Engineering, with its principal and independent specialists, performs NI 43-101 compliant assessments and studies in the sections of mineral processing metallurgical design, process design, capital and operating costing and cash flow analysis.
About Micon International Limited
Micon International Limited (Micon) has provided consulting services to the worldwide mining industry since 1988 from its offices in Canada and the UK. Micon comprises a multi-disciplinary group of highly qualified and experienced professionals who are guided by the Company principles of Integrity, Competence and Independence.
Micon’s experience in Mexico ranges from exploration programs and resource estimation to technical studies on operating mines, as well as due diligence for precious metals and base metals projects. Micon has worked in most of the major mining districts throughout Mexico, as well as some lesser-known historical districts. In northern Mexico, assignments have been undertaken in the gold and silver districts of Sonora, Durango, Zacatecas, Chihuahua and Baja California.
About SRK Consulting (U.S.), Inc.
SRK Consulting is an independent international mining consultancy firm, which provides focused advice and solutions to clients in the earth and water resource industries. The company has contributed to its clients’ success for over 45 years in over 20,000 projects globally. It is based across 45 offices worldwide with leading mining specialists in fields such as due diligence, technical studies, mine waste and water management, permitting and mine rehabilitation.
About Sonoro Gold Corp
Sonoro Gold Corp. is a publicly listed exploration and development company holding the near development stage Cerro Caliche project and the exploration stage San Marcial properties in Sonora State, Mexico. The Company has highly experienced operational and management teams with proven track records for the discovery and development of natural resource deposits.
On behalf of the Board of Sonoro Gold Corp.
Per:
“Kenneth MacLeod”
Kenneth MacLeod
President & CEO
For further information, please contact:
Sonoro Gold Corp. – Tel: (604) 632-1764
Email: info@sonorogold.com
VANCOUVER, Canada, August 28,2023 – Sonoro Gold Corp. (TSXV: SGO | OTCQB: SMOFF | FRA: 23SP) (“Sonoro” or the “Company”) is pleased to announce the positive results of an independent Preliminary Economic Assessment (“PEA”) on the Company’s Cerro Caliche gold project located in Sonora State, Mexico. The PEA demonstrates the potential viability for a nine-year life of mine (“LOM”), open pit, heap leach mining operation with an initial two-year production rate of 4,000 metric tonnes per day (“mtpd”) and an increase to 12,000 mtpd for the remaining LOM.
The PEA has been prepared in accordance with the requirements of National Instrument 43-101 (“NI 43- 101”) by D.E.N.M. Engineering Ltd. of Burlington, Ontario (“D.E.N.M.”) and Micon International Limited of Toronto, Ontario (“Micon”) with confirmation of the applicable resource estimates prepared by SRK Consulting (U.S.) Inc. of Denver, Colorado (“SRK”).
Updated PEA Highlights:
Pre-Tax net present value discounted at 5% (“NPV5”) of USD $71.4 million
Pre-Tax Internal Rate of Return (“IRR”) of 59%
After-Tax NPV5 of USD $47.7 million with an IRR of 45%
Gold recovery of 72% and silver recovery of 27%
9-year LOM with 297,575 ounces (“oz”) of gold equivalent (“AuEq”)
LOM annual average production of 33,000 oz AuEq at 0.45 g/t AuEq
Initial CAPEX costs of USD $15.5 million, including USD $1.83 million in contingency
Sustaining capital costs of USD $15.5 million
Cash(1) operating costs of USD $1,295/oz AuEq
AISC(2) of USD $1,395/oz AuEq
Payback period of 2.9 yearsNote: All currencies are reported in U.S. dollars. Base case parameters assume $1,800/oz gold and $23/oz silver.
(1) Cash operating costs include mining, crushing, processing, assaying, and administration.
(2) All-in-Sustaining Costs include cash costs plus sustaining, refining and reclamation costs, as well as 2% royalty buyout.“This PEA draws on the extensive expertise of our technical team in Mexico under the direction of our VP Operations, Jorge Diaz, who designed a mine plan which materially reduces upfront capital costs and increases throughput after year two with capital cost expansion financed exclusively from cash flow,” stated Ken MacLeod, President and CEO of Sonoro Gold. “This aligns with our objective to bring Cerro Caliche into production to allow potential resource expansion with minimal dilution to our shareholders.”John Darch, Sonoro’s Chairman added, “To date, only 30% of Cerro Caliche’s known mineralized zones have been mapped and assayed. In addition to the upcoming targeted infill drilling program at El Colorado and Guadalupe vein zones where our May 2022 drilling campaign demonstrated multiple high-grade ore shoots, we recently identified future expansion targets in the northwest region of the property. These campaigns will proceed alongside the proposed development of the mining operation and have been designed to materially expand the project’s oxide gold mineralization and potentially enhance the overall economics of the project.”
Mineral Resource Estimate
The PEA utilizes the updated Mineral Resource Estimate (MRE) prepared by SRK and, as announced on February 7, 2023, the MRE highlights include:
Indicated Mineral Resources (cut-off of 0.20 g/t AuEq) of 19.9 million tonnes (“Mt”) at 0.44 g/t Au and 3.5 g/t Ag grade;
Contains within an optimized pit shell:
280,000 oz of Au
2,240,000 oz of Ag
290,000 oz of Au Eq
Inferred Mineral Resources (cut-off of 0.20 g/t AuEq) of 10.5 Mt at 0.42 g/t Au and 4.0 g/t Ag grade;
Contains within an optimized pit shell:
140,000 oz of Au
1,345,000 oz of Ag
150,000 oz of Au Eq
The SRK report comments favorably on the upside potential of the project in terms of exploration. The current geological volumes and grade estimates, located outside of the pit shells, are considered too limited to establish grade continuity to meet the present requirements for Reasonable Prospects of Eventual Economic Extraction (RPEEE) for the mineralized area to be considered Mineral Resources. SRK has defined the ranges for the potential exploration targets outside of the current pits shell which are within the current modelled mineralized zones.
Based on the analysis, SRK considers the exploration potential (cut-off of 0.20 AuEq) within drilled areas for Cerro Caliche to be from 15,000,000 to 22,000,000 tonnes containing:
120,000 to 275,000 oz of Au at 0.25 to 0.38 g/t Au
1,045,000 to 2,350,000 oz of Ag at 2.2 to 3.2 g/t Ag
125,000 to 285,000 oz of AuEq at 0.26 to 0.39 g/t AuEq
The reader is cautioned that the potential quantity and grade ranges noted above are conceptual in nature and insufficient exploration has been conducted to define this material as a Mineral Resource. It is uncertain if further exploration will result in these exploration target estimates being delineated as Mineral Resources or converted to Mineral Reserves in the future. SRK cautions that estimates of exploration targets are not a CIM-defined category, are not Mineral Resources and are too speculative to fulfill the definition of Mineral Resources.
There are additional opportunities along strike and parallel to the current vein trends and this potential may be quantified through additional drilling. In addition to drilling, surface mapping and sampling sug- gests that several mineralized trends have potential for additional resources along-strike. Further explo- ration drill programs are warranted.
PEA Summary
The PEA is preliminary in nature and includes inferred resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the estimates presented in the PEA will be realized.
The full PEA will be filed on SEDAR at www.sedar.com and Sonoro’s website www.sonorogold.com within 45 days of the issuance of this news release.
Capital Costs
The estimated capital costs for the Cerro Caliche Gold Project are based on an open pit, heap leach operation with contract mining. Initial capital expenditures of USD $15.5 million, including 15% contingency, contemplates an initial two-year production rate of 4,000 mtpd with an increase to 12,000 mtpd in the third year of production. Costs include direct facility costs such as processing facilities and leach pad impoundment as well as infrastructure, EPCM, site preparation and indirect facility costs such as technical studies, office equipment and light vehicles. Initial capital costs also include USD $1.8 million for a down payment on a crushing circuit including equipment and related earthworks.
An additional USD $15.5 million is estimated for sustaining capital, including the expansion costs and lease-to-own payments on the crushing circuit as well as expansion costs on the heap leach pad. Power transmission line and equipment replacement costs are also included. Reclamation costs are estimated at USD $2.9 million.
Capital cost estimates are based on industry standards and were developed using quotes provided by mining contractors and specialists experienced in mining development in Mexico.
Operating Costs
Cash operating costs for Cerro Caliche’s LOM are estimated at USD $385.4 million or USD $1,295 per gold equivalent ounce and include mining, crushing and processing, as well as maintenance and administration costs. All-in Sustaining Costs (“AISC”) for LOM are estimated at USD $415.1 million or US$1,395 per gold equivalent ounce and include operating costs, sustaining capital, reclamation, royalties, and refining charges.
Royalties include a 2% Net Smelter Return (“NSR”) buyout to certain landholders and taxes include payments to the Mexican government for mining royalty and specific mining related taxes. Refining costs include carbon processing and production of dore´ bars.
Open pit mining will be undertaken by a contractor and carried out by drill and blast conventional loading and truck haulage to the crushing facility. An estimated mining cost of USD $1.99 per tonne processed includes drilling, blasting, and hauling mineralized feed to the heap leach area. Waste mining is forecast to cost a further USD $4.17 per tonne processed.
The processing facilities at Cerro Caliche will be comprised of a crushing circuit where mineralized material is processed through a three-stage crushing plant to produce material that is p80 of 1/2” (80% passing) method. The material is then conveyed and stacked in a conventional heap leach pad and irrigated with a low concentrate cyanide solution. An estimated crushing cost of USD $0.87 per tonne includes the cost of crushing and conveying.
Solution collected from the leach pad is then directed through a system of channels to the processing ponds where it passes through a series of carbon columns. Gold and silver impregnated carbon is collected periodically from the columns and then dried and stripped for dore´ bar production. An estimated processing cost of USD $5.72 per tonne includes leaching, assaying, labour and production of dore´ bars.
Operating cost estimates are based on industry standards and were developed using quotes provided by mining contractors and specialists experienced in mining development in Mexico.
Qualified Person Statement
David Salari, P.Eng. of D.E.N.M. Engineering Ltd., Christopher Jacobs, CEng, MIMMM, Kerrine Azougarh, P.Eng. and William Lewis, P.Geo. of Micon International Limited, and Doug Reid, P. Eng. of SRK Consulting (U.S.) Inc. are independent of the Company and are Qualified Persons as defined in NI 43-101.
Sonoro Director Stephen Kenwood, P.Geo., is a Qualified Person within the context of NI 43-101 and has read and approved this news release.
About D.E.N.M. Engineering Limited
D.E.N.M. Engineering Ltd. is a niche engineering company servicing the mining / mineral processing sector that specializes in Engineering & Design, Equipment Supply, Project & Construction Management, Commissioning and Operations Support. D.E.N.M. Engineering Ltd. has proven success while championing projects for over fifteen years in Canada, USA, Mexico and Central America.
In addition, D.E.N.M. Engineering, with its principal and independent specialists, performs NI 43-101 compliant assessments and studies in the sections of mineral processing metallurgical design, process design, capital and operating costing and cash flow analysis.
About Micon International Limited
Micon International Limited (Micon) has provided consulting services to the worldwide mining industry since 1988 from its offices in Canada and the UK. Micon comprises a multi-disciplinary group of highly qualified and experienced professionals who are guided by the Company principles of Integrity, Competence and Independence.
Micon’s experience in Mexico ranges from exploration programs and resource estimation to technical studies on operating mines, as well as due diligence for precious metals and base metals projects. Micon has worked in most of the major mining districts throughout Mexico, as well as some lesser-known historical districts. In northern Mexico, assignments have been undertaken in the gold and silver districts of Sonora, Durango, Zacatecas, Chihuahua and Baja California.
About SRK Consulting (U.S.), Inc.
SRK Consulting is an independent international mining consultancy firm, which provides focused advice and solutions to clients in the earth and water resource industries. The company has contributed to its clients’ success for over 45 years in over 20,000 projects globally. It is based across 45 offices worldwide with leading mining specialists in fields such as due diligence, technical studies, mine waste and water management, permitting and mine rehabilitation.
About Sonoro Gold Corp.
Sonoro Gold Corp. is a publicly listed exploration and development Company holding the near- development-stage Cerro Caliche project and the exploration-stage San Marcial project in Sonora State, Mexico. The Company has highly experienced operational and management teams with proven track records for the discovery and development of natural resource deposits.
On behalf of the Board of SONORO GOLD CORP.
Per:
“Kenneth MacLeod”
Kenneth MacLeod
President & CEO
For further information, please contact:
Sonoro Gold Corp. – Tel: (604) 632-1764
Email: info@sonorogold.com
Forward-Looking Stateme
Good to see insider support for $3 Million funding
"insiders intend to contribute C$1,000,000." (quote from CEO letter)
NEWS: Funding to keep moving forward.
"The PEA will outline the economic potential of our proposed heap-leap mining operation and is expected to be filed by the end of this quarter."
https://sonorogold.com/archives/news/sonoro-gold-announces-3-million-private-placement-2
Great interview. Confidence building.
(adding again lst link failed.
One of the statements in interview is they hope to see oz in ground to be increased to over 1 Million.
If that happens and gold price jumps to $5000+ the value of this play will explode. I don't know if
they will expand resources that much but I have no doubt gold will hit +$5000/oz
It is time for Sonoro Gold to get some attention. They are getting very close to some important catalyst. AND the pps is totally beaten down with the sector. Undervalued greatly at a time when they are very near a Environmental Permit and a production goal of 12 mo.
here is a great interview that greatly increased my confidence in my investment here.
SONORO GOLD ANNOUNCES $0.5 MILLION PRIVATE PLACEMENT
Dear Valued Shareholder,
Today Sonoro Gold announced a non-brokered private placement for $525,000. The financing is priced at C$0.15 per unit, consisting of one common share and one two-year warrant at an exercise price of C$0.225 per share. To view the News Release, please Click Here.
The primary purpose of the financing is to accommodate a select group of participants who were unfortunately too late to participate in the June 2022 private placement. We believe these investors will be a valuable addition to our expanding shareholder base.
As with the previous financing, proceeds from the current financing will be used for the ongoing development of a proposed heap leach mining operation at the Company’s Cerro Caliche gold project in Sonora, Mexico.
The project is currently in the permitting phase and we are working to update the resource estimate to include over 7,200 meters of reverse circulation drilling completed in May 2022. The updated resource will also include results from an underground channel sampling program completed at a historic underground tunnel located in the southwestern part of the property.
To view the results from the sampling program, please Click Here or for the latest corporate presentation, please Click Here.
Kindest Regards,
John M. Darch, Chairman
Sonoro Gold Corp.
SONORO GOLD ANNOUNCES $0.5 MILLION PRIVATE PLACEMENT
Dear Valued Shareholder,
Today Sonoro Gold announced a non-brokered private placement for $525,000. The financing is priced at C$0.15 per unit, consisting of one common share and one two-year warrant at an exercise price of C$0.225 per share. To view the News Release, please Click Here.
The primary purpose of the financing is to accommodate a select group of participants who were unfortunately too late to participate in the June 2022 private placement. We believe these investors will be a valuable addition to our expanding shareholder base.
As with the previous financing, proceeds from the current financing will be used for the ongoing development of a proposed heap leach mining operation at the Company’s Cerro Caliche gold project in Sonora, Mexico.
The project is currently in the permitting phase and we are working to update the resource estimate to include over 7,200 meters of reverse circulation drilling completed in May 2022. The updated resource will also include results from an underground channel sampling program completed at a historic underground tunnel located in the southwestern part of the property.
To view the results from the sampling program, please Click Here or for the latest corporate presentation, please Click Here.
Kindest Regards,
John M. Darch, Chairman
Sonoro Gold Corp.
SONORO GOLD REPORTS UNDERGROUND CHANNEL SAMPLING PROGRAM AT CERRO CALICHE INCLUDING 2.0 METERS OF
7.863 GRAMS OF GOLD PER TONNE
for graphs and charts go to...
https://sonorogold.com/wp-content/uploads/2022/08/20220815-Sonoro-Reports-Underground-Channel-Sampling-Program.pdf?utm_source=Sonoro+All+Contacts&utm_campaign=1e010a2122-EMAIL_CAMPAIGN_2020_02_26_02_16_COPY_01&utm_medium=email&utm_term=0_79d1829b60-1e010a2122-188037257
VANCOUVER, Canada, August 15, 2022 – Sonoro Gold Corp. (TSXV: SGO | OTCQB: SMOFF | FRA: 23SP)
( “Sonoro” or the “Company”) is pleased to report results from an underground channelsampling program recently completed at its Cerro Caliche
gold project in Sonora, Mexico. The program was conducted as part of the
Company’s plan to develop a proposed heap leach mining operation as outlined in an updated Preliminary Economic Assessment dated June 23, 2022.
Samples were obtained from a historic underground tunnel at the Cabeza Blanca
mineralized gold zone, located in the southwestern part of the property.
An electric rotary handheld saw was used to acquire 34 quality continuous channel
samples of vein and breccia material. Saw cuts were approximately four to six
centimeters (cm) deep cut perpendicular to the vein trend.
Highlights include 2.0 meters averaging 7.863 grams of gold per tonne (“g/t Au”)
across the vein with 3.5 meters averaging 3.071 g/t Au over the five saw cuts along the vein segment.
All reported intervals are true measured widths and all material was surface oxidized with the deepest samples collected approximately 25 to 30 meters beneath the terrain surface. Results provide important geological data
from a 100-meter section situated along the south end of the Cabeza Blanca vein zone as it enters the El Colorado mineralized zone. Figure 1: Channel sampling at south end of Cabeza Blanca
The current resource estimate classified this
100-meter section as an inferred resource, but the
underground sampling results, together with over 7,200 meters of new drilling data, will be included in
an updated resource calculation being completed on the project.
Mel Herdrick, Sonoro’s VP Exploration, commented, “The data is a good example of continuity of gold mineralization which is coincident with the normal
vertical and lateral variations we see when drilling. This detailed program also
provided quality and unbiased sampling of the vein and part of the exposed mineralized wall allowing a more complete evaluation of gold mineralized
volumes in this area.”
Kenneth MacLeod, Sonoro’s President and CEO, noted, “The underground channel sampling yielded valuable data that we anticipate will augment
the data obtained from our recent surface sampling and drilling programs
completed in the same area. As previously announced, an updated resource estimate is being prepared and will incorporate all geological data to date.”
John Darch, Sonoro's Chairman, added, "The positive results from the Cabeza Blanca South tunnel sampling program continue to highlight the intrinsic
value of the project and underline the Board’s ongoing commitment to develop
the proposed heap leach mining operation at Cerro Caliche.”
Tunnel Sampling Results
The Cabeza Blanca vein zone has average mineralized widths of up to 29 meters, inclusive of footwall and hanging wall mineralization. Two historic tunnels
were developed in the 1950s along the Cabeza Blanca vein, with the northern
tunnel continuing approximately 600 meters on a 10? northwestern trend and the
southern tunnel continuing approximately 350 meters on a 15? southeastern trend to the El Colorado zone. The southern tunnel splays into two distinct tunnels
at the midway point and the sampling program was completed in the eastern
splay. The western splay was not sampled. As illustrated in the image below, sampling occurred in three segments across 90 meters of the tunnel.
Segment No. 1 is the southernmost and nearest to the mouth of the tunnel, Segment No. 2 is located about midway and Segment 3 is a raised area at the north end of the tunnel.
Figure 2: Underground tunnel segments and sample cuts
Samples from Segment No. 1 returned the lowest gold grades with the five sample cuts averaging 3.9 meters of 0.401 g/t Au.
Segment No. 2 retuned the highest gold grades ranging from 0.624 g/t Au to 7.863 g/t Au, with the five sample cuts averaging 3.5 meters of 3.071 g/t Au. The
highest assay value of 7.863 g/t Au was across two meters from a vein-perpendicular saw cut with continuation in the vein hanging wall, including two
additional samples with veinlets and a composite 4.6 meters at 4.93 g/t Au.
Segment No. 3 retuned gold grades ranging from 0.704 g/t Au to 4.086 g/t Au, with the five sample cuts averaging 1.86 meters of 1.789 g/t Au.
The samples agree with the longitudinal contoured mineralization projections of the zone. A longitudinal plot of the drill intercepts with greater than 0.15 g/t Au is shown below.
Figure 3: Longitudinal section illustrating contoured values The widths of the
intercepts from the drill holes are plotted where the vein is cut and values contoured. This illustrates a near horizontal continuity of mineralization across t
he length of the Cabeza Blanca vein zone. The near horizontal character of contoured gold intercept values may reflect original boiling horizons as the
ground water levels may have varied. This is also supported by the presence of historic workings which were developed in higher grade contoured areas of
the vein.
Quality Assurance/Quality Control (“QA/QC”) Measures and Analytical Procedures
Channel samples were generated with an electric rotary handheld saw and chisel, and collected by hand in a catchment tarp below. The bagged samples were
numbered and identified, and the site photographed after painting sample
numbers on the ceiling. The samples were transported directly to the Bureau Veritis preparation laboratory in Hermosillo, Sonora. At the laboratory, part of each sample is reduced through crushing, splitting and pulverization from which 200
grams is sent to the B.V. gold assay laboratory in Hermosillo. A portion weighing
30 grams undergoes fire assay for gold, with the resulting concentrated
button of material produced then dissolved in acids and the gold is determined by atomic absorption. The remaining sample pulp material is sealed in paper bags and retained for additional analysis. No QA/QC issues were noted with the
results received from the laboratory.
Geologic Description
Cerro Caliche is located 45 kilometers east southeast of Magdalena de Kino in the Cucurpe-Sonora Megadistrict of Sonora, Mexico. Multiple historic underground mines were developed in the concession, including Cabeza Blanca, Los Cuervos,
Japoneses, Las Abejas, Boluditos, El Colorado, Veta de Oro and Espanola.
Mineralization types of the Cucurpe-Sonora Mega-district include variants of epithermal low sulfidation veins and related mineralized dikes and associated
volcanic domes. Local altered and mineralized felsic dikes cut the mineralized
meta-sedimentary rock units and may be associated with mineralization both
in the dikes and meta-sedimentary rocks
I attended the webinar yesterday for Sonoro Gold (TSXV: SGO & OTC: SMOFF). I liked what I heard (Resource, PEA, Price Target, etc), so sharing my notes & the replay link.
Webinar replay link: https://tinyurl.com/4vzhtkk3
The reason to consider investing in SGO is based on the:
- People
- Project
- Cap Structure
- Ability to Raise project financing
The flagship Cerro Caliche project is surrounded by multiple other open pit / heap leach mines and deposits. SGO is bringing Cerro Caliche into production with a 8000tpd heap leach operation which will allow for continued exploration expansion. Ken Macleod believes there is AT LEAST 2M oz of gold on the property and to increase the resource to 1M oz they estimate would require $3M budget for drilling which will be generated from operation cash flows starting in 2023.
Management expect that the updated resource estimate will be completed in August and disclosed to the public end of August/early September. From there a technical report will be completed within 45 days, management anticipates having an updated PEA released mid-October. Environmental permits should be received by this time as well.
SGO is in advanced discussions with 1 primary financing party, but have had negotiations with others as well. This main project lender is happy to finance with just an updated PEA, but SGO has done everything to do a PFS if needed. A PEA is obviously much cheaper and quicker to complete. SGO anticipates Q3/Q4 for an EPC (Engineering, Procurement & Construction) contract to be completed.
So catalysts & timeline to production follows something like this:
- updated resource estimate – Q3
- Environmental Permits – Q3
- Updated PEA – Early Q4
- Secure project financing – Early Q4
- Mine Constructure – Q4 to mid 2023
- Gold Mining / Production – H2 2023
SGO has a great insider base through-out Canada, USA, Europe, UK, and Asia. Insiders continue to buy in the open market and from the financing. There are no cheap stock. Insiders average is around 19-20 cent per share. There is no free ride from the management team, they believe in the project and are putting their own money back into the company as they expect a very nice ROI. John Darch owns over 6M shares and Ken Macleod owns over 9M.
The current PEA has an after-tax IRR of 45.6%. As the resource increases, the life of mine will also increase which will have an even further positive effect on the IRR, cash costs, etc. (the current PEA is here: https://sonorogold.com/archives/news/sonoro-files-updated-preliminary-economic-assessment-on-sedar ). Ken and John discuss how they can reduce CAPEX to positively affect this IRR even further.
At about the 50min mark, one of the viewers submitted some back-of-the-napkin math on what they felt the share price target could be relatively soon.
The webinar was great to attend. SGO has a market cap of just $18.8M and gearing up to secure project financing, start mine construction, and be in production by end of next year. There is a lot of upside ahead from a company standpoint, but I also strongly believe precious metals are going to run hard over the next 2-3 years with looming serious recession.
SONORO GOLD COMPLETES PHASE IV DRILLING PROGRAM AT CERRO CALICHE REPORTS MULTIPLE HIGHER-GRADE INTERCEPTS & EXPANSION OF GOLD MINERALIZED ZONES
7:30 AM ET, 06/13/2022 - GlobeNewswire
VANCOUVER, Canada, June 13, 2022 (GLOBE NEWSWIRE) -- Sonoro Gold Corp.(TSXV: SGO | OTCQB: SMOFF | FRA: 23SP) (“Sonoro” or the “Company”) is pleased to report assay results from the final seven drill holes, completing the Phase IV drilling program at its Cerro Caliche gold project in Sonora, Mexico. In total, the Company completed over 7,200 meters of reverse circulation drilling with 63 drill holes which returned multiple higher-grade gold intercepts and demonstrated the expansion of several known mineralized gold zones within the Cerro Caliche concession.
The objective of the program was to increase the estimated size and grade of the project’s oxide gold mineralization, as well as to extend the estimated life of a proposed heap leach mining operation as outlined in the Preliminary Economic Assessment (“PEA”) and updated Mineral Resource Estimate filed under the Company’s profile on SEDAR on October 29, 2021.
On May 9, 2022, the Company announced positive results of an updated PEA based on an optimized mine plan to potentially increase the project’s previously reported economic parameters. The updated report was based on the same mineral resource estimate contained in the Company’s initial PEA and did not include the new geological data from the Phase IV campaign.
Drilling results from the now completed Phase IV campaign will be included in an updated resource estimation scheduled to be announced in the fall of 2022. The economic impact of the updated resource on the proposed heap leach mining operation is also to be assessed and will be contemplated in a further technical report.
Mel Herdrick, Sonoro’s VP Exploration, commented, "Phase four has been a successful drilling campaign with continued reporting of mineralized extensions and higher-grade intercepts.As the project continues to move through the current permitting phase, the objective of the exploration team now is to refine our understanding of the new extensions and higher-grade zones, as well as the potential impact of the new drilling data on the project’s resource."
Kenneth MacLeod, Sonoro’s President and CEO, added, “The completion of the drilling program is another important milestone in the development of Cerro Caliche. Last month we announced the positive results of an updated PEA and are currently assessing the potential economic impact of the new drilling data on the proposed heap leach mining operation. An updated resource estimation is expected to be filed this fall and we will continue to work on securing project financing and moving the project forward.”
John Darch, Sonoro's Chairman, noted, “With regards to the successful completion of the drilling program, the Board would like to specifically commend the efforts of our exploration team in Mexico, most notably VP of Exploration Mel Herdrick, VP of Operations Jorge Diaz and Chief Geologist Oscar Gonzalez.These individuals have been instrumental in the success of Cerro Caliche’s exploration and development programs.”
Final Drilling ResultsThe results announced in this news release reflect drilling activity conducted at the Abejas gold mineralized zone located at the eastern perimeter of the Central Pit Zone, with the reported intercepts situated outside of the pit shell used to calculate the mineral resource estimate in the initial PEA.
Highlights are as follows:
SCR-321 intercepted 15.24m averaging 1.336 g/t Au; including 4.57m averaging 3.657 g/t Au;SCR-322 intercepted 18.29m averaging 0.785 g/t Au; including 1.52m averaging 4.88 g/t Au.
The map below illustrates the location of the drill holes.
Figure 1: Drill holes at Abejas...
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