Drill Program Commences at Biricu Project in Guerrero Gold Belt

Guerrero Ventures Inc. announced that it has commenced a 4,500m drill program at its Biricu project located in the Guerrero Gold Belt. The exploration work will be conducted by Minaurum, as a contractor to Guerrero except for drilling services.

As quoted in the press release:

Guerrero plans to drill approximately 4,500 meters of core at the Hornfels Hill, Punto Rojo, and La Curva prospects, following up on targets drilled in 2014 in addition to testing several other targets that were identified by geophysics but not drilled in 2014. The current program will test the upper Morelos Formation and is employing 3 man-portable rigs and 1 track rig.

Mineralization at Biricu appears to be related to skarn and hornfels alteration of Mezcala Formation shale and sandstone in proximity to diorite/granodiorite intrusive rocks. It is believed that the 2014 drilling terminated in the stratigraphically lower part of the Mezcala Formation, close to the upper part of the more prospective Morelos Formation limestone.

Guerrero recently received a CDN$770,000 loan from Minaurum to explore Biricu. (see News Release dated November 3, 2015). The loan bears interest at 8% and can be repaid at Minaurum’s choice in either cash or a direct 55% interest in Biricu. If Minaurum decides to convert its loan into a direct 55% interest in the Biricu project, it will also be granted an option to acquire a further 20% interest in exchange for funding $153,000 in exploration expenditures within 24 months of the conversion date.

The Biricu Project comprises more than 41,000 hectares of highly prospective intrusive rock types identical to those seen in Goldcorp’s neighbouring Los Filos Mine and Torex Gold’s nearby El Limon deposit.