California Gold Project

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The California Gold Project comprises 250 hectares within the prolific California-Vetas Gold District, Santander, Colombia, which also contains the multi-million ounce La Mascota, La Bodega and Angostura gold deposits.  The gold-silver-copper mineralization in the California Gold Project is part of the same large mineralizing system localized along a regional northeast-trending fault zone.  Mineralization occurs in northeast, northwest and east-west striking, generally steeply north-dipping fault structures containing high grade veins up to two metres in width.  Vein mineralogy includes pyrite, chalcopyrite and sphalerite.  Elevation ranges from 2,400 to 2,700 metres above sea level, far below the Paramo boundaries.

XR is advancing the California Gold Project toward economic feasibility by the delineation of high-grade vein resources exploitable by modern underground mining methods.  Underground mapping of existing mine workings and underground channel sampling are currently underway, prioritizing targets for underground diamond drilling as soon as possible.

The California Gold Project is located approximately ten kilometres from XR's existing Vetas Gold Project, potentially resulting in operational synergies, including processing at a central mill.

The Machuca zone was previously drill-tested by Galway Resources during 2012.  These results were incorporated in a Technical Report [1] and included intercepts:

  • GWY165 – 1.0m at 14.5 g/t Au and 1.6m at 23.5 g/t Au
  • GWY170 – 1.0m at 18.9 g/t Au
  • GWY173 – 3.5m at 11.5 g/t Au
  • GWY175 – 1.0m at 29.0 g/t Au
  • GWY176 – 1.0m at 27.6 g/t Au
  • GWY178 – 1.0m at 11.9 g/t Au
  • GWY180 – 1.0m at 47.2 g/t Au
  • GWY182 –1.8m at 33.4 g/t Au  
  • GWY191 – 1.5m at 13.0 g/t Au
  • GWY199 – 19.0m at 18.9 g/t Au
  • GWY208 – 1.0m at 25.6 g/t Au
  • GWY211 – 1.0m at 14.5 g/t Au and 1.0m at 10.8 g/t Au
  • GWY213 – 2.0m at 26.4 g/t Au and 1.0m at 15.0 g/t Au and 1.0m at 17.9 g/t Au
  • GWY216 – 2.3m at 14.3 g/t Au
  • GWY217 – 2.0m at 18.4 g/t Au
  • GWY219 – 1.0m at 15.1 g/t Au
  • GWY220 –1.0m at 117.0 g/t Au
  • GWY223 – 1.0m at 17.3 g/t Au and 1.0m at 22.9 g/t Au and 2.0m at 19.9 g/t Au
  • GWY227 – 1.0m at 11.1 g/t Au
  • GWY229 – 2.0m at 22.8 g/t Au
  • GWY230 – 2.0m at 11.3 g/t Au
  • GWY231 – 1.0m at 120.0 g/t Au and 1.0m at 66.7 g/t Au
  • GWY235 – 1.75m at 26.3 g/t Au
  • GWY239 – 1.0m at 22.4 g/t Au
 

[1] Technical Report “Resources California Gold-Silver Project“ dated October 25, 2012 available under Galway Resources Ltd.’s SEDAR profile.

Geology

California is situated in the Santander Massif of the eastern cordillera of the Andes Mountains. The massif is comprised of Precambrian gneisses, schists, quartzites and migmatites of the Guyana Shield. Intermediate to granitic instrusives of the Santander Plutonic Group were emplaced during a period of uplift in the Jurassic/Triassic era. Porphyry instrusive stocks and dikes in the immediate areas of mineralization may be as young as Tertiary in age. Regional faulting parallels the topographic fabric with the crustal-scale northwest trending Bucaramanga-Santa Marta wrench fault and the northeast trending Rio Cucutilla fault zone defining the principal structural trends.

Deposit

The gold-silver-copper mineralization in the California Gold Project is part of the same, large mineralizing system localized along a regional northeast-trending fault zone that also hosts the adjacent La Bodega deposit. Mineralization occurs in northeast, northwest and east-west striking, generally steeply north-dipping faulted structures containing high grade veins up to two metres in width. Vein mineralogy includes pyrite, chalcopyrite, sphalerite, and copper sulphides, with traces of silver minerals and sometimes visible gold.

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