The Company has completed due diligence, which included sampling of existing trenches on the Tom Zone, on the Santa Rosa gold prospect in the Province of Salta, north western Argentina. Results are as follows:
|Trench||From (m)||To (m)||Interval (m)||Gold g/mt||Silver g/mt|
Trenches TZ-01 and TZ-02 are 50 metres apart and the samples are one-metre chips. The intervals may not constitute a true thickness of the mineralized zone as the trenches slope downhill to the west.
The pulps from these samples were submitted to IPL Labs for gold and silver analysis by cyanide leach/AAS methods. Recoveries from 24 hour bottle roll tests from trench TZ-01 were 70% for silver and 96% for gold and 82% silver and 97% gold from trench TZ-02.
Cascadero Copper has agreed to enter into an option agreement whereby it can earn an initial 51% interest in the Santa Rosa Property from Argentine Frontier Resources (AFRI) by spending US$2 million on exploration (US$300,000 before January 31st 2007), paying US$750,000 in cash ($25,000 on signing) and issuing 2.5 million shares (100,000 on signing) over four years. Cascadero Copper retained Dawson Geological Consultants of Vancouver BC to prepare a Technical Report (NI 43-101) on the property, which will be filed with the formal Cascadero-AFRI agreement. The agreement is subject to regulatory approval.
Gold mineralization was first discovered in the area by prospectors in 1996. Subsequent work between 1997 and 1999 included geological mapping, sampling and trenching. Based on compiling the historic work supplied under a confidentiality agreement with Barrick Gold and in-the-field due diligence conducted by AFRI and Cascadero geologists and the recent interpretation of the Dawson Geological NI 43-101, gold and silver mineralization is concentrated in a northwest trending zone from 600 to 1,000 meters wide and at least 5.5 km long. Mineralization is related to quartz veining and quartz vein breccias, which are fault and fracture controlled. Gold is extremely anomalous with values in excess of 350 g/tn being recorded. High-gold values are present in several zones over the 5.5 km strike length.
According to the James M. Dawson 43-101 report,
"The setting of these mineral occurrences has many of the characteristics of distal, epithermal precious metal systems associated with porphyry copper deposits. However, some aspects are suggestive of mesothermal gold deposits, especially Sediment Hosted Vein Deposits. It is possible that there are two superimposed gold mineralizing events and that this may explain some of the exceptionally high-values present."
The Tom Zone was discovered by and named for Dr. Tom Richards, Chief Geologist of AFRI. It was the focus of the historic work and is believed most prospective for deposit discovery. Cascadero will also focus on this zone.
Permitting, which includes environmental, archaeological and baseline studies is currently in progress. The Company intends to conduct an initial 1,500 metre 12-core hole program expected to cost US$300,000. The Company is planning a financing to fund this first stage of the program. The property has not previously been drilled.
The property is subject to a Back-in-Right in favour of Barrick Gold Corp. If Cascadero provides notice to exercise its option to acquire a 51% interest in the property from AFRI, AFRI is obligated to notify Barrick and to deliver all property and financial data. Upon a 90 day data review period and confirmation of expenditures Barrick can exercise its Back-in-Right and acquire a 70% interest in the property. Upon exercise, Barrick will reimburse Cascadero 200% of its expenditures and has three (3) years to complete a bankable feasibility. Failure to exercise the Back-in-Right within the 90 day period or if the Back-in-Right is exercised and Barrick fails to provide a bankable feasibility study within the 3-year allotted time period, both actions will result in Barrick forfeiting its entire interest in the property.
Assaying was conducted by Acme Analytical of Vancouver BC. All assays are 30 gram fire assays with 28-element ICP. Preliminary metallurgical work was completed by International Plasma Labs Ltd. of Vancouver BC. Field work was under the direction of by Dave Kuran, P. Geo., who also compiled and interpreted the data and who is the qualified person for the Company.
Cascadero, Stealth Minerals and AFRI have certain directors in common and Stealth Minerals owns 23,000,001 shares (61%) of Cascadero and provides management and geological consulting services to it and AFRI.
Chief Executive Officer
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