Orion Gold District

Orion Project

Early results at Orion are showing that a significant rich vein system occurs in the northern portion of the Orion Project, where Phase 1 drilling has been concentrated. Drilling will continue to follow-up on Phase 1 success, drilling out the newly discovered mineralized vein systems as well testing other undrilled targets. Several of the mineralized zones intersected during Phase 1 are located within veins that have been traced for considerable distances along surface, while drilling has shown that the mineralizing system could have considerable depth potential.

The Orion Project is analogous to the Tayoltita District, in Durango, where bonanza vein systems have produced nearly 10 million ounces of gold and 650 million ounces of silver in reserves. The Tayoltita District is host to epithermal bonanza Ag(Au) – Pb(Zn) veins in the Lower Volcanic Group. These veins run east-west and have strike lengths up to and over 2 kilometres, while mineralization commonly extends to 500 metres depth and down to 1000 metres in some cases. Goldcorp operates the Luismin mine within the Tayoltita District and presently has 220 million ounces of silver with a mine life of +20 years.

The Orion Project is unique in that it may be an unrecognized bonanza vein district in western Mexico. The veins, identified on the project to date, are high-grade silver with strong gold credits, hosted in the Lower Volcanic Group, strike nearly east-west, similar in to those of the Tayoltita District. The veins have been traced to lengths of 700 metres and still open along strike. The Animas vein system, the most advanced target to date is also providing evidence of deep mineral potential with one drill hole intersecting mineralization nearly 400 metres below the surface. Nayarit will continue with exploration, including an aggressive drill program to unlock the value of the high-grade vein system at Orion.

Location, Size & Infrastructure

The Orion Project is located approximately 109 km NNW of Tepic in the state of Nayarit, Mexico. The
area has excellent infrastructure, with the Pan American Highway, a railroad, and a major power transmission line passing through the project.

The Orion Concession now totals over 110,000 hectares. Recently, Nayarit completed a strategic acquisition of several concessions within the greater Orion Project. With these concessions Nayarit now has a commanding land package over an area that is demonstrating the potential  to become a new mining district. The map below illustrates Orion Project, with the newly acquired ground, as well as the Animas Discovery which has been the focus of the drill program to date.

Nayarit has been focused on the Animas Discovery, which hosts two parallel structures called the Del Norte and Animas veins, which appears to be part of a larger system of veins and stockwork. The image below illustrates the Animas/Del Norte system in relation to the newly acquired concessions. The new concessions, as illustrated below, contain the Francisco and Pantaleon mines, which are about 1 kilometre west and east, respectively of the area being drilled by the Company. Mapping suggests the Animas and Del Norte structures extend onto the new concessions and these previously mined areas may be part of a larger continuous structure.

The Francisco mine is a past producer with underground operations extending over a strike length of 300 metres. In addition, about 21 drill holes have been completed along strike from the past operations, extending the length of the system an additional 400 metres.  Highlights from the drill program at the old Francisco mine are tabled below. These drill results are not 43-101 compliant, nor have they been verified by Nayarit personnel. Nayarit will immediately commence a field program to determine the relationship between the Francisco and Pantaleon mines with the Animas/Del Norte system. This will be followed up by a drill program to verify the results from the previous program at Francisco.

Geology and Mineralization

The Orion Gold District is situated in the western edge of the Sierra Madre Occidental (SMO) metallogenic province, a large Mid-Tertiary volcanic terrane, which is one of the world’s largest epithermal precious metal terranes and hosts a majority of Mexico’s gold and silver deposits (see Top Image).

The Lower Volcanic Group (LVG) consists mainly of 45 to 36Ma andesitic tuffs, flows and breccias. The LVG hosts approximately 95% of the important precious metal deposits and is considered to be one of the most mineralized lithologic units in México. Various felsic intrusive suites intruded the LVG.

The Upper Volcanic Group (UVG), 32 to 23 Ma, rests unconformity upon the LVG and consists of intermediate ash-flow tuffs, ignimbrites and air-fall tuffs capped by rhyolitic ash flow tuffs.

Project Geology

The Orion Gold District area consists of folded LVG volcanoclastic andesitic tuffs lying unconformably over basement volcano-sedimentary rocks. Subhorizontal to shallow-dipping felsic ignimbrites belonging to the UVG unconformably rest over the LVG andesitic sequence.

Mineralization

Gold mineralization at Orion is epithermal in character and hosted in a series of east-west trending breccia zones and mineralized quartz veins. The ore is constituted mainly of pyrite, galena, sphalerite and silver sulphides, with an oxide zone as deep as 30 metres in places. The geochemical suite identified at Orion also suggests there has been little erosion of potential orebodies.

ANIMAS Discovery

Nayarit is focused on exploring and drilling in the immediate area of the Animas/Del Norte vein system. A phase I drill program in 2007 discovered this system, and now Phase II has started with the aim of extending the mineralization along strike.

Results to date from the Animas Discovery is showing the system is mineralized for at least 200 metres along strike and to 300 metres below surface. Mineralization is open in all directions. Please click on the image to view the most recent developments and drill results from the Animas Discovery..