MEXICO IN THE STATE OF SONORA: THE LOS MUERTOS BULK-MINEABLE SILVER-GOLD PROJECT

VIEW PDF August 2010–ROME’S LOS MUERTOS BULK-MINEABLE SILVER-GOLD PROJECT. Click: 100825rmrdetaillosmuertosweb

INTRODUCTION

Rome Resources Ltd. concentrates its exploration activities in Argentina and Mexico (Fig. 1). Emphasis is on acquisition and development of copper, tungsten, silver and gold properties. The main projects in Mexico are in Michoacan and in Sonora. Focus in Michoacan is on the Inguaran Valley Porphyry Copper-Tungsten Project, which is about 25 kilometers east of La Huacana and 50 kilometers east of the capital Morelia. Porphyry copper prospects in the San Isidro area of Michoacan are also held. Exploration in Sonora includes the: (i) La Colorada Bulk-Mineable Gold Project, about 40 kilometers east of the capital city Hermosillo, (ii) Los Muertos Bulk-Mineable Silver-Gold Project, about 80 kilometers southeast of Hermosillo, and (iii) Don Luis Bulk Tungsten-Gold Greisen-Porphyry Project, about 45 kilometers north of Hermosillo. This article describes the Los Muertos Bulk-Mineable Silver-Gold Project, which is centered about 80 kilometers east of the capital city Hermosillo in the State of Sonora, Mexico.

General information on exploration of these projects is available in News Releases, etc., that are available on SEDAR and at www.RomeResources.com; click “News”. Specifically, the web site gives detailed geological descriptions and assays from the main properties; click “Projects” and select project of interest. Additional tables, maps, etc., detailing with property ownership, geology, geophysics, geochemistry and drilling also are available in Rome’s Annual Reports for 2006 and 2007; click “Annual Reports”.

Figure 1. Rome’s exploration focus includes the: (i) Varvarco Gold Vein and Porphyry Project in Neuquen, Argentina, (ii) Inguaran Valley Porphyry Copper-Tungsten Project in Michoacan, Mexico, (iii) La Colorada Bulk-Mineable Gold Project in Sonora, Mexico, (iv) Los Muertos Bulk-Mineable Silver-Gold Project in Sonora, Mexico, and (v) Don Luis Bulk-Mineable Tungsten-Gold Greisen-Porphyry Project in Sonora, Mexico.

EXPLORATION TARGET

The program on the Los Muertos Bulk-Mineable Silver-Gold Property has been designed to define drilling targets for the discovery of bulk-silver-gold deposits of multiple-vein, manto, disseminated, and possibly, Carlin types. Geological aspects, geochemical signatures and geophysical responses are of various types within an area defined by the geophysical grid in Figures 2 to 4. Highly anomalous features occupy most of the area of this grid that is about 150 hectares. A drilling program on the Nosit Grid is proposed.

PROPERTY HELD

The Los Muertos concessions in the state of Sonora are plotted in Figure 2. They form two blocks: (i) Los Muertos North (Los Muertos 1 [Application Number 82/30912, 1,346.0 ha] and Los Muertos 3 [Application Number 82/31515, 757.0 ha]), and (ii) Los Muertos South (Los Muertos [Application Number 82/30911, 408.4 ha] and Los Muertos 2 [Application Number 82/30956, 150.0 ha]). Los Muertos North and Los Muertos South cover about 2,103.0 hectares and 558.4 hectares, respectively; they total about 2,661.4 hectares. These four concessions are in the name of Roma Recursos de Mexico, S.A. de C.V., a wholly owned Mexican subsidiary of Rome Resources Ltd.

Figure 2. Rome’s Los Muertos Bulk-Mineable Silver-Gold Project (2,661.4 ha) in central Sonora, Mexico. The property is staked in two blocks: (i) Los Muertos North (Los Muertos 1 and Los Muertos 3) of 2,103.0 ha, and (ii) Los Muertos South (Los Muertos and Los Muertos 2) of 558.4 ha. The area is underlain by quartzite, limestone, and locally, granitic intrusions. Rome’s properties are outlined in purple. Properties not belonging to Rome are hatched brown. (Coordinates are UTM NAD27 Mexico, Zone 12R.)

EXPLORATION RESULTS

Reconnaissance geochemical sampling has yielded significant results in silver and gold on Los Muertos North and South (Fig. 2). Detailed soil grids will follow-up areas of interest. However, the Nosit Grid in Figures 3 to 5 is the first detailed grid completed; it is within the Los Muertos North block (Fig. 2).

Geological observations on the Nosit Grid (Figs. 3 to 5) indicate that the majority of this grid is underlain by quartzite. There is minor, local limestone. Silver and gold mineralization has been extracted from a number of small mines and pits in this area. These workings generally follow vein-faults that trend northeast. Many areas beyond the working are marked by gossanous red soil without an obvious relationship to the mined veins. Consequently, in addition to the veins, larger Carlin, disseminated and manto types of silver-gold mineralization are being targeted.

Topography in the Nosit Grid area is shown in Figure 3. The main part of the grid is flat, however, the eastern side is hilly.
Soil geochemistry on the Nosit Grid area is shown in Figure 4. Soil geochemical silver anomalies in this figure are generally coincident with high gold values. The high geochemical values mark the location of old workings, but are more extensive. Soil geochemistry along geophysical lines is presented as stacked bar graphs in Figures 6 to 10 that are plotted above inverted induced polarization chargeability and resistivity profiles. The stacked bar graphs plot a “precious metal factor” (PRMFA) that statistically sums correlated values of 12 metals, including silver and gold. In addition, the graphs display the soil values for silver in ppm (AGPM) and gold in ppb (AUPB). Proposed drill holes (Table 1) also are plotted on Figure 4 and on the profiles of Figures 6 to 10. Note that there is a possible “rabbit ear” anomalies around Hole 5, and possibly, Hole G (Table 1 & Fig. 6).

Ground magnetometer values on the Nosit Grid, reduced to the pole and upward continued 25 meters, are shown as contoured nT in Figure 5. The anomalous high (red) trend in the magnetics—coincident with the higher topography shown in Figure 3—on the eastern side of the grid—possibly reflects an intrusive at depth, which might be mineralization causative.

Inverted induced polarization chargeability and resistivity profiles are plotted with the soil geochemical profiles in Figure 6 to 10. The induced polarization survey array was dipole-pole, with a = 50 meters and n = 6. Proposed drill holes (Table 1) also are plotted on these profiles.

PROPOSED DRILL HOLES

The drill holes in Table 1 are those needed to test the best targets presented in the combined geochemical, chargeability and resistivity profiles in Figures 6 to 10. Soil geochemistry for silver is in Figure 4. Note that the magnetic survey in Figure 5 indicates that there is a causative intrusive on the northeast side of know mineralization. Hence, testing of all sections ensures that potential zoning in precious metals related to this intrusion is tested. Proposed holes are given two priorities. The Second Priority holes would only be drilled after successful and encouraging results from the First Priority holes.

TABLE 1. Proposed drill holes, in two priorities, on the Nosit Grid of the Los Muertos Silver-Gold Property in Sonora, Mexico. All holes were located using geochemical, resistivity and chargeability information presented in the profiles of Figures 3 to 10.

SECTION NE	1ST PRIORITY:LOCATION NW	1ST PRIORITYDEPTH / INCLIN	2ND PRIORITYLOCATION NW	2ND PRIORITYDEPTH / INCLIN
0500	5: 1900	300 / vertical	*G: 2250	300 / 60 NW
0500	4: 2450	200 / 60 NW	F: 1600	250 / 60 NW
0500			H: 2650	200 / 60 NW
0750	3: 2100	300 / 60 NW	E: 1500	300 / 60 NW
0750			D: 2400	300 / vertical
1000	1: 2100	250 / 60 SE	B: 1300	200 / 60 SE
1000	2: 2300	250 / vertical	A: 2200	250 / vertical
1000			C: 1600	250 / 60 SE
1250	**6: 2250	350 / 60 NW	I: 2450	300 / 60 SE
1250			J: 1650	150 / vertical
1500	8: 1700	250 / 60 SE	K: 2050	250 / vertical
1500	7: 1900	300 / vertical	L: 1900	250 / 60 SE
1500			M: 2550	350 / 60 NW
TOTALS	8 HOLES /5 SECTIONS	2,200METRES	13 HOLES /5 SECTIONS	3,350METRE

* Possible “rabbit ear” anomaly in geochemistry profile. ** possible “graphite” anomaly.

Drill holes, and priority, are outlined in Table 1. Second Priority drill holes are to be drilled contingent upon success of First Priority drill holes. In summary, the proposed drilling is:

1. First Priority: eight holes drilled along five sections totaling 2,000 meters.
2. Second Priority: thirteen holes drilled along five sections totaling 3,200 meters.

Total potential drilling on this property is 5,550 meters. This is sufficient to outline whether or not the property should be taken forward to a program of reserve estimation.

Figure 3. Los Muertos Bulk-Mineable Silver-Gold Property in Sonora, Mexico: Nosit Grid with Priority 1 reverse circulation drill holes (red: 1 to and Priority 2 drill holes (green: A to M) on topography in meters. The geophysical grid is at an angle to the UTM grid that is Nad27Mexico.

Figure 4. Los Muertos Bulk-Mineable Silver-Gold Property in Sonora, Mexico: Nosit Grid. Priority 1 reverse circulation drill holes (red: 1 to and Priority 2 drill holes (green: A to M) are plotted on soil geochemical silver anomalies (yellow = 2 to 5 ppm silver; red = more than 5 ppm silver). High gold values in soil are generally coincident with high silver values Note that the highest priority holes (1 to 3 in red on sections 750NE and 1000NE) target anomalous silver values (red contours). High silver soil concentrations generally reflect abundance of old workings, but are broader in extent. Gold values in soil mimic the silver values presented.

Figure 5. Los Muertos Bulk-Mineable Silver-Gold Property in Sonora, Mexico: Nosit Grid with Priority 1 reverse circulation drill holes (red: 1 to and Priority 2 drill holes (green: A to M) on ground magnetometer magnetic values in nT. The anomalous red trend in the magnetics—and the higher topography (Fig. 3)—on the eastern side of the grid possibly reflects an intrusive at depth, which might be mineralization causative. Note that the drill holes proposed sample different intensities of the magnetic signature.

Figure 6. Nosit Grid (Figs. 3 to 5) Section line 0500 NE with soil geochemical silver profile above inverted induced polarization vertical sections of resistivity and chargeability. Note possible “rabbit ear” anomalies around Hole 5, and possibly, Hole G. PRMFAC = statistical “precious metal factor” that sums correlated values of 12 metals. AGPM & AUPB are silver ppm and gold ppb, respectively.

Figure 7. Nosit Grid (Figs. 3 to 5) Section line 0750 NE with soil geochemical silver profile above inverted induced polarization vertical sections of resistivity and chargeability. Priority hole 3 also targets anomalous soil silver (Fig.4).

Figure 8. Nosit Grid (Figs. 3 to 5) Section line 1000 NE with soil geochemical silver profile above inverted induced polarization vertical sections of resistivity and chargeability. Priority holes 1 and 2 are close to anomalies in soil silver (Fig. 4).

Figure 9. Nosit Grid (Figs. 3 to 5) Section line 1250 NE with soil geochemical silver profile above inverted induced polarization vertical sections of resistivity and chargeability. Note that for Hole 6 the high chargeability and low resistivity anomaly might represent a graphitic stratigraphy.

Figure 10. Nosit Grid (Figs. 3 to 5) Section line 1500 NE with soil geochemical silver profile above inverted induced polarization vertical sections of resistivity and chargeability.

CONCLUSIONS

The Nosit Grid is significant because it has: (i) a number of old pits and shafts, (ii) magnetic data indicated a possible mineralization-causative intrusion at depth on the eastern side of the grid, (iii) chargeability anomalies with associated resistivity anomalies indicate sulfide zones of substantial extent, and (iv) some anomalies that extend from old working and silver (and gold) geochemically anomalous areas. The majority of the anomalies are not apparently graphite, which is common in the general area, because generally high chargeability anomalies are associated with high resistivities. Several possible graphitic targets are identified (high chargeability and low resistivity: Hole 6 in Table 1 & Fig. 9). Two possible “rabbit ear” anomalies in the geochemistry were noted for Hole 5 and Hole G (Table 1 & Fig. 6). The large geophysical targets indicate the possibility of locating significant deposits with large tonnage of the disseminated, manto or Carlin type.

FUTURE DEVELOPMENT ON THE LOS MUERTOS BULK-MINEABLE SILVER-GOLD PROJECT

Ongoing exploration on the Los Muertos Bulk-Mineable Silver-Gold Project involves, first of all, drilling program on the Nosit Grid as outlined above. Following this, regional geochemical grids that sample mainly silts from gulleys and soils which look anomalously red, and (ii) detailed grids in areas of known gold showings should be sampled. As anomalous areas of interest are defined these will be surveyed, as appropriate, with detailed grids and by geological, rock geochemical and geophysical methods. Drilling will follow target definition.

QUALIFIED PERSON & CAUTIONARY NOTE

Colin I. Godwin, PhD, PEng, PGeo, is a Professor Emeritus of the Department of Earth and Ocean Sciences. He is President and Director of the Rome Resources Ltd., and is a qualified person as defined in National Instrument 43-101. He has verified the technical data disclosed in this description of the Los Muertos Bulk-Mineable Silver-Gold Project.

Rome Resources Ltd. is in the process of exploring its resource properties and has not yet determined whether the properties contain minerals or mineral reserves that are economically recoverable. The recoverability of the amounts shown for resource properties and any related deferred costs is dependent on the existence of economically recoverable mineral reserves, and the ability of Rome to obtain the necessary financing to complete the development and future profitable production from the properties or proceeds from the disposition thereof.