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Durango State, Mexico Firesteel
Resources Inc. acquired the Virimoa gold-silver-base metal property in
June, 2000 as a result of an aggressive, cost-effective evaluation of
numerous prospects in the Sierra Madre Mining District of Mexico. The Exploration and Mining Environment
of Mexico Mexico
has a long history as a world-class producer of metallic and non-metallic
minerals and, since pre-colonial times, has produced vast amounts of
precious and base metals. The Spanish developed thousands of mines –
most of which exploited silver and gold in central Mexico and today,
Mexico remains the world’s largest silver producer. Although the country
has been well prospected, modern exploration has only taken place during
the last several decades. In essence, much of the country is relatively
unexplored. The
laws and regulations governing mining and exploration are well documented
and are well regarded by the international mining community. Recent
revisions to these laws have allowed foreign mining companies to own 100%
of mineral rights. The climate generally allows year-round exploration. In
most parts of the country, the infrastructure is very well developed. The
NAFTA agreement has facilitated many aspects of doing business in Mexico.
In addition to numerous Mexican mining companies, established
international companies are currently exploring and mining, including
Barrick, Billiton, Cambior, Cominco, Kennecott, Noranda, Placer Dome and
Teck. Many Canadian junior exploration companies also have active
exploration programs. Well-qualified exploration and mining service
companies provide a full range of services from offices throughout the
country. The Sierra Madre Mining District The
Virimoa property lies within the Sierra Madre mining district of western
Mexico. This district is dominated by a thick package of Tertiary volcanic
rocks cut by related intrusive rocks. Numerous mines and prospects are
present throughout this district and comprise large, open pit-able
epithermal gold-silver deposits, high-grade gold-silver-copper veins and
chimney/manto lead-zinc-silver mines. A number of very large (+ 1 million
ounce) gold deposits are present within the district – some of which are
shown on the accompanying map. Generally, the grade of the open-pit
deposits varies from 1 to 4 g/t gold or gold equivalent. |