Oaxaca Mining District

Oaxaca Project

This large gold and silver rich mining district is located in the State of Oaxaca, about one hour’s drive southeast of the City of Oaxaca.

The district is underlain by a large polymetallic epithermal mineralizing system that is host to the Taviche, San José, Ejutla, and Lachigalla Mining Districts, and several other historical mining districts. These districts share the same geology and mineralizing system and, until recently, and despite a long mining history, had seen little modern exploration. In the last few years, several international junior mining and exploration companies began aggressive exploration in the area resulting in several new discoveries, including the San Jose, Higo Blanco and Cobre Grande discoveries of Fortuna Silver Mines Inc, Aura Silver Resources Inc and Linear Metals Corporation, respectively. The full potential of the area is only just beginning to be understood and it is an up and coming area with excellent potential for continuing discovery.

The region is underlain by a Mid-Tertiary polymetallic epithermal mineralization system rich in silver and gold. It is hosted within a package of Cretaceous and Tertiary volcanic’s, volcaniclastic’s and sediments, with associated intermediate to felsic porphyry intrusions. Over 60 small scale historic mines existed in this environment that extracted only the high grade gold and silver from the prolific narrow veins that outcrop throughout the region. Narrow veins were the preferred mine target throughout Mexico historically as they tended to be very high grade and amenable to the expensive hand cobbing mine methods (a labour intensive hand sorting and high-grading method) used at the time. Historical records also mention hydrothermal breccia and stockwork mineralization that was largely left behind as it was considered too low grade to be mined profitably with the mine methods used and the existing metal prices. The region was one of Mexico’s most important producers of gold and silver in the late 1800’s through mid-1900’s.

The Company acquired a 100% ownership in over 74,460 hectares in three large non-contiguous claims through direct staking in 2007. Though the Zimatlán, Ejutla I and Ejutla II claims are all early stage (greenfields) projects, the acquisition of these three claims has given Newstrike a leading strategic land position in this important emerging mining district.