Gold in the Mojave-Sonora Megashear
I went to Sonora a little while back to visit a new and upcoming junior. We flew commercial into John Wayne International Airport in Santa Anna California and then flew down to Sonora in Northern Mexico in a charted Cessna 207. We barely made it.
I started Naval Aviation flight training in Pensacola in May of 1965. Airplanes are cool, when you have the nose too high and the wing begins to lose lift, the stall warning horn goes off to warn you of an impending spin. Really cool.
I haven’t heard a stall warning horn go off in an airplane I was in in 47 years. I was in the back of the charter on the way to Mexico; two “pilots” were in the front. We are still climbing going through 9,000 feet and the stall warning horn was blaring. Only one person in the plane wasn’t a pilot and even he was shaking his head. And while there is something really cool about dying while doing my duty, spinning in from 9,000 feet would be just too embarrassing for words. We survived. I don’t know how. The flight home was just as bad.
Urastar Gold (URS-V) is buying a major 12,500 ha gold project in the heart of the Mojave-Sonora Megashear. The company is in the process of completing a 10,000-meter drill program with good results at their flagship El Antimonio Project in Sonora Mexico. The company is paying a total of $2 million for the project over a five-year period. The next payment is for $75,000 due in December. There is a $1.45 balloon payment due in three years.
Mining in Northern Sonora dates back to as early as 1722 with hundreds of small workings in the area. During WW II, the demand for antimony was so high that extensive work was done to exploit deposits for the mineral. The largest producing gold mine in Mexico, La Herradura, is located a short 50 km away.
URS is looking for a bulk-minable near-surface oxide gold deposit. The company has outlined 6 main target areas and 10 minor areas where surface samples and prior mine workings have been located. Most of the drilling to date has pretty much been scout drilling but with excellent results. The company plans on shifting to more of a definition type drilling in the next phase of the drill program.
Results released to date show 29.0 meters at .79 g/t gold, 67.1 meters of .54 g/t gold and 53.3 meters of .44 g/t au. None of those results qualify as barn burning but at this stage of exploration they are exceptional. Now the company needs to define and expand a minable resource. They are in elephant country so the potential is excellent.
Urastar has a pair of smaller projects in the heart of the Mulatos Gold District. La Juliana is a 700 ha gold prospect, El Jabli is a 70 ha prospect. The two projects are the last two prospects in the Mulatos District not controlled by Alamos Gold or Agnico Eagle. The company picked El Jabli in a Mexican government lottery. La Juliana is optioned with a total payment of $2 million for 100% with payments over a five-year period.
The company has conducted a small 805-meter drill program on the El Jabli project with good results of 59.4 meters of 1.46 g/t gold. Obviously it would be in the best interests of both Alamos Gold and Agnico Eagle to control as much of the district as possible and I have little doubt the company will be holding discussions with either or both companies about some sort of joint venture on the pair of projects.
The company is young but carries no baggage. The president and CEO is Adrian Robertson from Vale and Teck. He’s young and that’s a good thing. The average CEO and director in the mining business is in his 60s and 70s and we need to start promoting a younger crowd. I visited the El Antimonio project on this tour and have been on the La Juliana project years ago.
Urastar has indicated they intend to become an advertiser and obviously that creates a vested interest on my part. I don’t own shares and I am not paid to write. As always, investors are reminded to do their own due diligence.
The company is well cashed up for now, is aggressively moving their projects forward and is located in one of the best mining jurisdictions in the world. I look forward to another visit. I don’t look forward to flying with the same pilots.