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Algun Dia

SUMMARY HIGHLIGHTS

  • Location: Leon-Guanajuato region of Mexico
  • Commodity: Gold, Silver and Copper
  • Status: Historical production
  • Ownership: Option Agreement to acquire up to 70% interest

SUMMARY

Algun Dia is Golden Fame's principal project and is located near the cities of Guanajuato and Leon in Mexico, close to the world-class Guanajuato Silver District. The property has demonstrated past economic production of gold, silver and copper from a major vein-hosting structure with mineralized true widths exceeding 10 meters in places. Historical reports indicate that between 2002 and 2007, the property produced approximately 25,000 tonnes of material during periods of test mining, of which 15,000 tonnes went to the Bolañitos processing plant in Guanajuato for processing. The Guanajuato Silver District has a history of mining dating back 400 years, and it ranks amongst the largest silver districts in the world.

To date, only a portion of the total known strike length of the main vein-hosting structure has been tested by drilling and/or underground development, leaving the majority of the strike length and down-dip extension yet to be explored. A sampling program by Golden Fame in April, 2011 has verified the existence of highly anomalous grades of gold, silver and copper both on surface and in underground workings, as also reported in the historical data.

A further program of diamond drilling, underground mapping and excavation is planned, with a 7000 m+ surface drilling program already underway.

LOCATION & OWNERSHIP

The Algun Dia Property is located approximately 30 km east of Leon, Guanajuato State, Mexico and consists of an exploitation concession (development and extraction) covering an area of 190 hectares.

On May 18, 2011, Golden Fame Resources entered into an Option Agreement with Mr. Rodolfo Rodriguez Aldaco for the Algun Dia property. Under the terms of the Agreement, Golden Fame can acquire a 70% interest in the property over a three-year period by making payments to Mr. Aldaco totalling $4.3 million (Canadian), issuing to Mr. Aldaco 3 million common shares of Golden Fame, and expending a minimum of $6.5 million on exploration/development work on the project. Golden Fame's minimum work expenditure for the current work program is $2 million.

The eastern portion of the Algun Dia property comprises the Esperanza formation, a volcano-sedimentary sequence which formed as part of the Guanajuato volcanic arc that developed during the Middle Cretaceous. The western portion of the property comprises Duarte conglomerate, which was deposited unconformably upon the Esperanza Formation during Eocene to Lower Oligocene. Three main intrusive bodies can also be recognized within the property area:

  • a fine-grained granodiorite intrusion at the hanging wall of San Cayetano structure;
  • granitic dykes, within the Esperanza Formation, similar in texture to Comanja granite located approximately 2 km to the east of Algun Dia claims;
  • the Cerro Pelon tonalite which occupies the southernmost portion of the property.


Panoramic view of Algún Día Property


Location of Algún Día Property, Guanajuato State, Mexico


Geological map of Algún Día Property

STRUCTURE

The main structural feature within the Algun Dia property is the El Bajio Fault, a major regional structure that extends for approximately 80 km from Iraputo to the south to Leon on the north and consists of a series of normal high-angle faults with downthrown blocks to the southwest. The Algun Dia claim block covers approximately 1.5 km of the El Bajio Fault structure and the San Cayetano vein system. Other mineralized structures identified on the property by historical workings also appear to be associated with this fault system.

The Veta Madre Fault that hosts the Veta Madre silver deposits near the city of Guanajuato is 10 km east of the El Bajio fault and trending parallel to it in a NW-SE direction.

MINERALIZATION

Mineralization at Algun Dia consists of quartz-hematite veins and veinlets with disseminated and locally semi-massive pyrite and chalcopyrite. The main mineralized structure (San Cayetano) is hosted within a sheared and brecciated granodioritic sill in the hanging wall and intermediate volcanics of Esperanza formation in the footwall.

The style of mineralization at Algun Dia appears to be that of a low-sulfidation epithermal deposit characterized by enrichment in precious metals (Au and Ag), paucity of base metals (Pb and Zn) except for copper, and anomalous values of As, Bi and Sb.

To date, only a portion of the total known strike length of the vein-hosting San Cayetano structure has been tested by drilling and underground exploration works, leaving the majority of the strike length and down-dip extension yet to be explored. The structure, which hosts a brecciated, copper-silver-gold bearing vein system, is open to depth. At least five additional structures have been recognized on the property with outcropping characteristics similar to the San Cayetano vein, providing additional exploration targets.

The exact length, width, depth and continuity of the mineralization have not been determined at this stage of exploration.

PREVIOUS EXPLORATION

The Algun Dia Property has seen sporadic exploration work by the concession holder since 1987. Prior to this the area had seen minimal exploration work in the form of small mining operations carried out by local prospectors.

Between 1997 and 1998, approximately 2,000 m of diamond drilling was completed by the concession holder in 9 holes targeting the San Cayetano structure. Further details of this drilling are provided in the Company’s NI 43-101 technical report on the property: ‘Amended and Restated Independent Technical Report, Algun Dia Property, Guanajuato State, Mexico’, written by Caracle Creek International Consulting Inc. and dated October 28, 2011.

Two of these historical drill holes, AD-08-97 and AD-10-97, located on the same section approximately 50 m apart, and inclined at -75°, intersected the Santa Cecilia vein at approximately 140 m down-dip with high-grade gold, silver and copper mineralization over several meters. According to the historical assay records (not available for review by a Qualified Person, although the Company intends to verify these results with its current drilling), drill hole number AD-8 encountered 14 m assaying 2.34 g/t gold, 120.3 g/t silver and 1.88% copper. Hole AD-10 drilled 16 m assaying 1.71 g/t gold, 104 g/t silver and 1.51% copper. Both holes were drilled at angles to intersect the vein at close to true width.

A third drill hole, AD-11-97, was drilled from the same location as AD-08-97 at an inclination of -45° to test the up-dip extension of the mineralized zone intersected at depth. AD-11-97 intersected anomalous gold, silver and copper values over shorter intervals, indicating that the mineralized zone continues up-dip. Other notable drill holes include AD-06-97 collared approximately 30 m to the southwest, along strike of the San Cayetano structure which intersected primarily anomalous copper values with minor silver.

AD-09-97, drilled approximately 60 m to the northeast of drill holes AD-08-97 and AD-10-97, did not intersect any significant mineralization. This may indicate a heterogeneous distribution of high-grade gold and silver mineralization along the San Cayetano vein structure, both along strike and at depth.

Note – results for the above holes are historic data, and the Company is unable to verify their accuracy. However, drill core for some of the historic holes was available for inspection by the Company’s technical team. Details of drill hole sample sizes, analytical methods used and names/locations of assay laboratories are not known.

From 2002 to 2007, underground workings were constructed on several prospects within the project area, among which Santa Cecilia and El Carmen, within the San Cayetano structure, are the most significant in terms of size. This work followed the construction of a 4 km access road and construction of an exploration camp site. Historical reports indicate that approximately 25,000 tonnes of material was mined during this period primarily from Santa Cecilia and El Carmen level, of which approximately 15,000 tonnes were sent to the Bolañitos processing plant.

RECENT EXPLORATION

In April 2011, Golden Fame Resources Corp. contracted Minera Cascabel S.A. de C.V. to collect independent samples and verify historical data including underground workings, surface outcrops and diamond drilling core review. A total of 73 samples were collected from underground workings and surface outcrops within Algun Dia project area.

High-grade mineralization was sampled in both underground workings, Santa Cecilia adit, El Carmen, Los Tejones, Jesus, San Cayetano adit, San Crispin and La Escondida.

The recent sampling also indicates that anomalous values of gold and silver occur not only within the mineralized quartz-hematite veins, but also in the silicified volcanics in the hanging wall of San Cayetano structure.

The extent of mineralization and its distribution along the veins/structures and within the altered host rock away from these structures is not yet known due to the limited exploration work and will be fully addressed by the current exploration program.

WORK PROGRAM 2011

Recently, the Company has raised $7.1 million in a Private Placement, at least $2 million of which is being used towards the aggressive exploration of the prospect, which includes diamond drilling, underground mapping of existing production stopes and workings, and the excavation of an underground spiral ramp within the known concentration of mineralization.

The Company commenced a drill program of over 7,000 m in September of this year.

Lawrence A. Dick, PhD, PGeo is the Qualified Person, as defined by National Instrument 43-101, who is responsible for the technical information on this website.

Dr. Dick is a Director of Golden Fame Resources Corp. and is a professional geologist with over 35 years of experience in the mineral exploration industry.

Technical information on the Algun Dia project is extracted from the NI 43-101 technical report entitled ‘Amended and Restated Independent Technical Report, Algun Dia Property, Guanajuato State, Mexico’, written by Caracle Creek International Consulting Inc. and dated October 28, 2011.