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.