On February 16, 2011, August Metal Corporation closed a transaction to acquire the 16,310 hectare Las Lajas Gold Project, located in southern Sonora, Mexico through an option to purchase 100% of the outstanding shares of Goldzone Exploration Inc. The state of Sonora contains numerous precious and base metal deposits and producing mines, and has a strong mining history and culture with favorable permitting and infrastructure. Work to date has clearly demonstrated the widespread nature of gold mineralization at Las Lajas and has confirmed the potential for both high grade structurally controlled gold deposits, and large, bulk tonnage gold mineralization.
The Las Lajas Project
The 16, 310 ¬hectare Las Lajas Project consists of 7 contiguous mining concessions and is located in Southern Sonora State, Mexico. The concessions are owned by Minera Goldzone SA de CV a wholly owned subsidiary of Goldzone Exploration Inc. Las Lajas has excellent access and infrastructure as it is located approximately 15 kilometers (9 miles) north of the city of Navojoa. The close proximity to Navojoa combined with low topographic relief on the project provide for efficient exploration.
The Las Lajas property has numerous high grade showings with gold and gold-arsenic mineralization, to date only exploited by local miners. The Project was previously Operated by Minera Glamis and Minera Phelps Dodge in the 1990’s. Work completed by the previous Operators included geological mapping, 2,000 soil samples, 28 line kilometers of induced polarization geophysical surveys, 50 shallow percussion drill holes concentrated on one area, and 5 reverse-circulation drill holes scattered over the property. The Las Lajas Project exhibits strong geological, geochemical and structural similarities to the Mesquite (Western Goldfields) and Picacho bulk tonnage gold deposits in southeastern California.
No systematic exploration was conducted on the property since 1999 until Goldzone began its work in 2007. Many targets generated by the previous exploration programs remain untested and the Company’s new work has generated additional targets. The work to date has clearly demonstrated the widespread nature of gold mineralization at Las Lajas and has confirmed the potential for both high grade structurally controlled gold deposits, and large, bulk tonnage gold mineralization in 6 separate target areas.
August recently completed a 4,395 metre trenching program on the project. The best results were 12 meters grading 2.92g/t Au in trench T-15 in the El Terco Zone, 4 meters grading 202.5g/t Ag in trench T-27, two separate intervals of 12 meters grading 1.30g/t Au and 18 meters grading 1.06g/t Au in trench T-32 in the El Peluchin West zone, and 2 meters grading 8.00g/t Au in trench T-42 in the Peluchin Northwest Extension. A 2,400 drilling program is currently underway to test targets defined and untested by previous operators, and targets generated by the recently completed trenching program on the Las Lajas Gold Project.
The Company has assembled a strong professional Mexico-based support team who will continue to assist in all phases of permitting, exploration and development of the Las Lajas Project. The Company retained Michelle Robinson, MASc., P.Eng., of Mazatlán Mexico who completed a NI 43-101 report on Las Lajas and continues as the Qualified Person for the project.
