On November 28, 2016 Wolverine Minerals Corp. signed an option agreement with Almadex Minerals Limited to acquire a 100% interest in the Los Venados property that is located within the Mulatos gold mining district of Sonora State, Mexico. The property is situated immediately north of the Mulatos open pit gold mine owned and operated by Alamos Gold Inc.; between the Mulatos mine concessions and those of La India gold mine operated by Agnico Eagle Mines Limited. The terms of the option agreement are contained in the Wolverine Minerals' news release dated November 29, 2016.
The Los Venados property consists of one mining concession, called the 'Los Venados 1, covering an area of approximately 1,524 hectares. The concession is situated approximately 220 kilometres east-southeast of the city of Hermosillo, capital of the State of Sonora. The village of Mulatos is located near the southeastern corner of the property. Road access to the property is readily possible via paved and gravel roads from either Hermosillo southeast to Mulatos via Sahuaripa, or via the Chihuahua-Hermosillo highway and then north to Mulatos. The property is regionally situated in the Basin and Range physiographic province within the Sierra Madre Occidental mountain range. Elevations locally range from 960 to 1,630 m AMSL.
Jesuit priests first discovered gold mineralization at Mulatos in 1635. Over the last 50 years exploration work by Phillips Petroleum, Homestake Mining, Kennecott, Placer Dome and others has focused on the oxidized gold deposits at and near the current Mulatos mine. The Los Venados property was once part of the Mulatos mine holdings but it came free in December 2005 and was staked by Minera La Pitahaya SA de CV, a private Mexican company and the underlying property owner. Since then Cangold Limited and Pembroke Mining Corp. have carried out preliminary geochemical sampling and geological mapping with very limited diamond drilling in the northern portion of the property, well away from the most interesting exploration targets in the southern part of the concession.
The Mulatos gold mining district and surrounding area is receiving intense exploration by a number of companies including Alamos Gold, Agnico Eagle and Fresnillo PLC. Alamos Gold is currently carrying out extensive pre-development work on the La Yaqui and Cerro Pelon gold deposits situated within 7 kilometres southwest of their Mulatos mining operation. In addition to its mining operation at La India, Agnico Eagle is actively exploring a gold occurrence southwest of the village of Tarachi, situated about 7 kilometres northwest of the Los Venados property, and Fresnillo is exploring another gold occurrence northeast of Tarachi.
The Los Venados concession is located centrally within the Mulatos gold mining district, an approximately 25km x 25km area of mid-Tertiary volcanic rocks hosting numerous occurrences of high sulphidation style alteration and mineral occurrences. Three generalized rock packages are present in the district, andesitic rocks correlative with the Lower Volcanic Series of the Sierra Madre, bimodal felsic pyroclastic and mafic basaltic rocks of the Upper Volcanic Series, and dacitic dome complex rocks that are localized at the unconformity between Upper and Lower Series units. Dacitic dome complex rocks are of primary interest as they host most of the economic mineralization in the district and almost all gold reserves. District mineralization is gold-dominant, with accessory silver and copper. Most economic gold mineralization occurs within silicic alteration, but significant gold occurs within advanced argillic assemblages of pyrophyllite-dickite proximal to silicic alteration.
Both Almadex Minerals and Pembroke Mining have carried out preliminary geological mapping with silt, soil and rock geochemical sampling in the southern portion of the property. In addition, Almadex Minerals has conducted induced polarization geophysical surveying along +2-kilometre long east-west lines over the geochemically anomalous areas.
In December 2016 Wolverine Minerals funded Almadex Minerals' field work directed at the geochemical and geophysical anomalies within the southeastern portion of the property. Geological mapping identified three large alteration zones coincident with known anomalous soil and rock geochemical samples. The results from two additional east-west lines of induced polarization surveying confirmed the presence of a suspected buried intrusion, possibly mineralized, in the vicinity of anomalous soil and rock samples returning values in excess of 1 gpt gold. The results of this preliminary work are shown in the accompanying Exploration Targets Map.
Almadex Minerals has secured an agreement with the local Ejido granting exploration access and the rights to construct 12 drilling pads, plus they received permitting approval from the Secretaria del Medio Ambiente y Recursos Naturales (Secretary of the Environment and Natural Resources) for the drilling from the 12 drill pads.
Prior to drill testing in 2017 Wolverine Minerals plans to firstly carry out detailed geological mapping with concurrent geochemical sampling over the three exploration targets shown on the Exploration Targets Map. This work will be extended property-wide once the most favourable drilling sites have been established. Base-line environmental studies will also be undertaken at this time to establish the pre-drilling environmental setting of the property.