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Golden Goliath: A Mining District of its Very Own

Unlike many junior miners, which may hold a scattering of properties in various areas and countries, or perhaps have an option to earn an interest in some properties, Golden Goliath (TSX: GNG) controls an entire historical mining camp, or district, covering a 325 square kilometre area of the world famous Sierra Madre Occidental Mountains, in northwest Mexico, and contains numerous past producing gold and silver mines, dating back hundreds of years. Historic production ended around the time of the Mexican Revolution, and Golden Goliath is the first company to assemble this land package and conduct modern exploration, including geochemistry, geophysics and the first drilling ever conducted on the properties.

Golden Goliath is a Canadian based junior exploration company, with market capitalisation of C$13.7 million. The company’s key assets are the seven historic mining projects within Uruachic mining camp, where the majority of recent exploration efforts have focused on the Filo de Oro target area at the Las Bolas property. In addition, Goliath has the La Cruz Silver Project, which is located on outside of the Uruachic camp in the eastern edge of the Sierra Madre Belt, and the Chamizal Lead, Zinc and Silver Project, also located outside of Uruachic, in central Chihuahua, Mexico. All of their combined historic properties contain numerous workings, ranging in size from small exploration pits to regular size mines with sub-levels, tracks, ore chutes and tunnels, and Goliath has around C$94,000 worth of property and equipment.

The Las Bolas property is comprised of seven claims (Los Hilos, Los Hilos II, Los Hilos II Frac.1, Mina de Las Bolas, Don Lazaro, El Manto, Ampliation La Verde) totalling 657 hectares, and is located in the centre of the Uruachic camp, at the intersection of thee major regional lineaments. In 2008/2009, Goliath undertook a 1:50 scale detailed underground mapping and sampling program in the Las Bolas, Gambusino and Frijolar tunnels, resulting in greater understanding of the nature and distribution of the mineralisation at a much lower cost compared to drilling. This comprehensive and successful work identified four main mineralised fault fracture vein system in these workings and established that mineralization is hosted in both the wall rocks, and in the fault fracture veins system. This fault fracture veins system is repeated in the three major mineralized trends; Las Bolas/Gambusino, Frijolar and El Corazon, that cross the Las Bolas property in a roughly east west direction.

Filo de Oro was an entirely new disseminated bulk tonnage gold mineralisation system to the fault and fractures hosted mineralisation, in the Las Bolas/Gambusino, Frijolar and El Corazon areas. The latest assay and rock sampling results from Filo de Oro target are very encouraging. Results from six assays released (Dec 2009) for example, showed some very high grade interesction iof both gold and silver. These included intersections of 0.3 metres grading 21.3 grams per tonne (g/t) gold and 695g/t silver, 0.60 metres grading 4.09g/t gold and 2,210g/t silver, 0.60 metres grading 4.32g/t gold and 1,460g/t silver, 0.60 metres grading 15.2g/t gold and 1,120g/t silver, 0.50 metres grading 2.15g/t gold and 414g/t silver, and 0.65 metres grading 0.62g/t gold. At the same time, the company also discovered a new vein called Silicosa, which is located 390 metres northwest of the Los Hilos vein system, and is projected to intersect Filo de Oro at right angle. Samples from this vein returned 9.1g/t gold and 920g/t silver.

Following on from these assay results, Goliath released rock sampling results earlier this year, from the newly opened Los Hilos tunnel within the Filo de Oro trend. A total of 44 chip samples were included, averaging 2.07g/t gold and 98.61g/t silver over 151 metres, with individual samples grading as high as 33.9g/t gold and 245g/t silver over 0.65 metres. In the Mosca de Plata tunnel, 105 metres above Los Hilos, 39 chip samples were taken, averaging 0.70g/t gold and 142g/t silver, along 47 metres of workings. These included samples as high as 24.7g/t gold over 1.6 metres, and 610g/t silver over 2.6 metres. In addition, surface samples were taken 500 metres north of Los Hilos on the Filo de Oro trend, with an average width of 2.37 metres, and saw an average grade of 1.13g/t gold and 87.66g/t silver. Goliath believe this effectively extends the strike length of this bulk tonnage target to 790 metres.

Paul Sorbara, CEO of Goliath, suggests “Our understanding of the Las Bolas mineralized system has been significantly enhanced over the past few months. Combined with the three other previously established trends on the property, Las Bolas is clearly showing its potential to be a major silver-gold deposit, as demonstrated by the gold and silver grades”. He also notes that going forward, the company will now focus on expanding the known resource in the 12 vein systems identified to date on the main portion of Las Bolas, and hopes to quantify the potential of the new Filo de Oro trend.

With much of the works already in place, reducing exploration costs, and with the high grades of both gold and silver coming from the Los Bolas site, the potential can already been seen for just one of Goliath’s many properties in its Uruachic Mining District. With 325 square kilometres of prime Sierra Madre under its banner, with the mineralisation results their properties have been seeing, one can certainly see where the company gets its name.