On September 14th, we wrote up Canuc Resources Corporation (TSXV: CDA), a company focused on mining exploration in Mexico, while also generating cash flow from 8 producing natural gas wells in West Texas. Their flagship San Javier Silver-Gold Project is in Sonora State, Mexico, and located within the prolific Sierra Madre Silver Belt.
Most of the silver that makes Mexico the world’s second largest silver producer comes from the Sierra Madre Silver Belt.
At the time, we wrote:
Canuc caught our eye with a July 28, 2020 announcement that it had commenced a geological mapping and systematic sampling program along the 3 km structural corridor of the San Javier Silver-Gold Project. The San Javier area has also been the subject of recent activity by another junior exploration company, Barksdale Resources (TSX-V:BRO). Barksdale has some noteworthy shareholders such as Eric Sprott, US Global Investors and Teck Corporation.
Insider Buying
Since our write up, it’s interesting to note that CEO Chris Berlet has purchased 162,500 shares in the open market. The assumption here would be that Berlet believes he may be onto something big in Mexico.
Could the Company have an IOCG Deposit?
From a corporate update from September 22nd, in regards to the ongoing work program on the San Javier Silver-Gold Projec,t the company tells us the following:
“The mineralogy suggests that the breccia zones may represent the lower part of a large, magmatic hydrothermal system. The breccia zones locally contain relatively narrow (up to 1.5 metres) lenses consisting of massive magnetite matrix material with bonanza grade Ag and elevated Cu. The work program has identified these swarms of iron-matrix breccia over a large area measuring 900 by 1,200 metres which remains open laterally in an unmapped area of the Company’s claims. One of the individual breccia zones in this area measures from 30 to 70 metres in width and has been traced for approximately 800 meters along strike. It occurs adjacent to two fault structures.
The work program will continue mapping and sampling on the Company’s center to eastern claim area where the property appears to be underlain by the iron-matrixed breccia zones. There is approximately 800 meters of unmapped ground between the current mapping grid and the Company’s property boundary. This property boundary is contiguous with a claim group containing two previously identified Cu deposits – Mesa Grande and La Trinidad – explored in 2007 by Constellation Copper Corp. These deposits were considered to be the upper levels of an iron oxide-copper-gold (IOCG) deposit type.”
These ore bodies contain up to 4 billion tonnes of ore with grades including up to 5% copper and gold contents up to 3 g/t. The size, metallurgy and high grades of IOCG deposits are known to produce highly profitable mines. At this stage, we do not know if Canuc has an IOCG deposit just yet. The only way to verify this is to continue to drill. We will continue to cover this story as it develops further.
FULL DISCLOSURE: Canuc Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Canuc Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
