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Soltoro Ltd’s (TSXV: SOL) El Rayo silver deposit is located in Mexico’s Jalisco state.
The silver deposit is a 3 hour drive from Puerto Vallarta’s sea ports and a 2 hour drive from Guadalajara’s international airport, and sits south of the town of Guachinango.
Guachinango, the former state capital of Jalisco, was established in the mid 16th century and the earliest mining community in southwestern Mexico.
El Rayo is one of 6 Soltoro projects in Jalisco state where the company has staked and acquired in excess of 55k hectares. Soltoro has optioned out three of these projects.
El Rayo is located within a 70 km mineralized trend where numerous junior explorers and producers are defining deposits.
The infrastructure of the immediate project area is excellent, as the existing deposit was defined next to a paved road off a main highway. The area also boasts access to an educated workforce (Guachinango) and plentiful power and water supplies.
The El Rayo project hosts numerous mineralized structures where silver, gold and lead have been extracted from 16 underground mines. Present exploration targets of interest include: Las Bolas, Highway Zone, Soledad, Catarina Mine, Mesa Colorada and Santa Fe.
Since Soltoro acquired El Rayo in 2005, drilling to define silver resources has focused on four structures where silver mineralization has been traced over an aggregate strike length of 3.5 kilometres the Las Bolas, Highway Zone, Soledad and Catarina structures.
Soltoro recently announced an updated in-pit measured and indicated 43-101 resource estimate at Las Bolas and the Highway Zone, more than doubling the previous estimate.
Of the 115 drill holes completed by Soltoro on the Las Bolas and Highway Zone structures from 2007 to 2010, 84 drill holes encountered significant silver mineralization over intervals up to 260 metres.
Drilling highlights from Las Bolas include 90m @ 150 g/t Ag and 260m @ 50 g/t Ag.
The Las Bolas structure contains an in-pit measured and indicated resource of 52 million ounces silver (contained in 5.9 million tonnes grading 64 g/t Ag measured and 24.3 Mt grading 51 g/t Ag indicated). Mineralization within the Las Bolas structure is continuous with a strike length of 1.2 km trending northeast.
Drilling in the Highway Zone also revealed extensive mineralization, including 12 m grading 216 g/t in hole RC10-82
This zone is mineralized to 200 metres depth and contains an additional 6.3 million oz Ag indicated plus 300,000 oz Ag inferred.
Soltoro is conducting resource drilling on the recently discovered high-grade Soledad structure located south of the Las Bolas deposit.
Drilling is ongoing at Soledad, with 45 drill holes completed over a strike length of more than 600 metres.
Assay results indicate the potential for significant tonnage in these high-grade silver shoots.
In July 2011, Soltoro intercepted two separate shoots at Soledad where drill hole Ray 11-60 returned 7 m grading 1,010 gpt silver; 6.9 m grading 527 g/t silver was intercepted further down hole.
In October of 2011, Soltoro began testing the historic Catarina mine area to prove up and expand a historic government resource established in 1982.
Catarina is the largest past producing silver mine in the area. Previously Soltoro completed six orientation drill holes at Catarina where drilling below old mine workings has confirmed that mineralization extends to depth.
Drilling is underway to confirm and expand the historic resource.
The 500 metre strike length of the Catarina Mine area is open on either end, and is mineralized to a depth of 250 metres with intervals ranging up to 46 metres grading 115 g/t Ag (Ray 07-23).
Drilling to define the extent of the high grade silver shoots at the newly discovered Soledad structure and historic Catarina mine area is ongoing at Soltoro’s 100% owned primary silver project.
The company expects to release an updated resource estimate in the first quarter of 2012.
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