San Diego Property
Velardeña Mining District
Location and Ownership
The 92 Ha. San Diego Property is located 75 km southwest of the city of Torreon, 4 km ENE of Golden Mineral’s San Juana Mine and 13 km NE of Penoles’ Santa Maria Mine in NE Durango State, Mexico.
The property is easily accessible power and mining infrastructure nearby. The property is approx. 20 minutes on a gravel road from a major 4 lane highway. The property is wholly owned by Silver Storm and is subject to a 2% NSR to Golden Minerals.
Deposit Setting
The Velardeña Mining District hosts quartz-calcite veins with associated silver, lead, zinc, gold and copper mineralization typical of the polymetallic, low-sulphidation epithermal deposits of northern Mexico.
The San Diego property is centered on a large Tertiary Diorite Stock which intrudes a thick sequence of Cretaceous limestone of the Aurora and Cuesta del Cura Formation.
San Diego Deposit
33,000 meters of surface diamond drilling has been completed on the property since 2005. Silver occurs with Lead and Zinc sulphides and Silver-sulphosalts in a variety of environments, including: numerous laterally and vertically continuous Carbonate Veins; stringer zones; disseminated zones; Carbonate replacement zones; Mantos and, at depth, very large Skarn Zones. SGS (Canada) Ltd., using a geo-statistical approach to resource estimation, completed a 43-101 Compliant Resource Study in 2013.
The study identified 23 different Mineralized zones and generated 34 3D-Block Models. Results from the study are shown in Table 1. The wide variety in style, width and grade of mineralization across the property was evaluated using appropriate cut-off grades related to narrow-vein mining, long-hole mining or large-scale bulk mining methods in Mexico.
San Diego Mineral Resource Estimate
Potential for Synergies with La Parrilla
San Diego – Mineral Resource Estimate – SGS Canada, April 2013
| Category and Mineral Type | CoG(g/t) | Tonnes (Mt) | Grade | Contained | |||||
|---|---|---|---|---|---|---|---|---|---|
| Gold (g/t) | Silver (g/t) | Lead (%) | Zinc (%) | AgEq 5 (g/t) | Ag (M Oz) | AgEq 5 (M Oz) | |||
| Indicated Oxides | 133 | 0.31 | 0.43 | 211 | NA | NA | 234 | 2.1 | 2.3 |
| Indicated Sulphides | 52-125 | 16.2 | 0.07 | 57 | 0.70 | 1.23 | 103 | 29.5 | 51.2 |
| Total Indicated Resources | 16.5 | 31.6 | 55.5 | ||||||
| Inferred Oxides | 133 | 0.29 | 0.43 | 238 | NA | NA | 261 | 2.2 | 2.4 |
| Inferred Sulphides | 52-125 | 41.8 | 0.07 | 61 | 0.9 | 1.32 | 114 | 81.6 | 152.9 |
| Total Indicated Resources | 42.1 | 83.8 | 155.3 | ||||||
Price Deck:
3-year tailing avg. Silver US$28.10/oz; Lead US$1.00/lb.; Zinc US$0.96/lb.
Cautionary Statement: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The potential quantity and grade reported as Mineral Potential, is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that is uncertain if further exploration will result in the target being delineated as a mineral resource.
Notes for the Mineral Resource Estimate for San Diego as described in the ‘NI 43-101 Technical Report: Updated Mineral Resource Estimate San Diego Project, Velardeña Mining District, Durango State, Mexico’, prepared by SGS Canada, with an effective date of April 12, 2013 and available under the Company’s profile on www.sedarplus.ca or the Silver Storm website www.silverstorm.ca.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves.
All figures rounded to reflect the relative accuracy of the estimates.
CoG: Cut-Off Grade Ag.Eq (g/t); please refer to Table 31 on page 104 of the report for further information.
Ag.Eq: Silver Equivalent based on commodity prices of US$1,455/oz Au, US$28.10/oz Ag, US$1.00/lb Pb, US$0.96/lb Zn applying estimated mill recoveries & smelter deductions & payables of 64.9% Ag, 76.4% Pb & 57.5% Zn for sulphide and 60.5% Ag & 62.5% Au for oxide resources. Zn and Pb are excluded from Ag.Eq for oxide resources and Cu and Au are excluded from Ag.Eq for sulphide resources. Please refer to Table 30 & Pages 103-104 of the report for more information.
Pb and Zn are excluded from oxide vein resources due to lack of metallurgical tests illustrating their potential recoveries.
Totals may not add up precisely due to rounding.
(Mt): million tonnes; (M oz): million ounces.
Additional metallurgical testing required to establish potential.
Exploration Potential
Indicated and Inferred Resources from the 34 3D-Block Models are determined geostatistically using the separation of the available, and often limited, drill holes.
Areas of Potential Resources are those areas of the modelled mineralized zones where too few holes have been drilled to date for mineralization to be classified as a Resource. Recent exploration drilling at the 57 Target has confirmed mineralization commencing at surface to ~290 m depth. This mineralization shows connectivity with the deeper mineralized system.
Further exploration, from surface to a depth of 400 meters, will focus on high grade veins and where they may form ‘blow-outs’ or pipes at intersections with other zones.
Updated Mineral Resource Estimate San Diego Project, Velardeña Mining District Durango State, Mexico
Technical Report - NI 43-101
