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Golden Fame (V.GFA) has stepped in as the newest participant in the mineral-rich Guanajuato district with its historical Algun Dia gold-silver-copper project

Having produced an estimated 1-1.2 billion oz of silver and 5-6 million oz of gold throughout its mining history, Mexico’s Guanajuato Silver District is an enduring cornerstone in the precious metals market. With more than 400 years of activity, Guanajuato’s legendary mines have come to represent the wealth of Mexico’s rich deposits. During the region’s silver mining peak in the 1700’s, the famous La Valenciana mine put Mexico on the map, accounting for two-thirds of the world’s silver production at its height.

Presently, the surge in global demand for silver and gold have re-ignited a flurry of activity in the Guanajuato district not seen since the historical peak, as miners compete for a slice of the region’s wealth.

AuRico Gold Inc. (TSX: T.AUQ, Stock Forum) is a leading intermediate Canadian gold and silver producer with an attractive precious metals portfolio. The company is active in all 3 major gold belts in Mexico, with more than 295,633 hectares and three operating mines. Among its several operating properties is the El Cubo mine in Guanajuato, comprised of 58 exploration concessions covering 8,500 hectares, with a nearby mine complex that processes up to 2,000 tonnes per day. After resuming production as of July 23, the mine is set to further explore its potential, which, according to 2010 data, consists of the following: 328,000 oz Au and 18,038,000 oz Ag proven and probable; 223,000 oz Au and 6,336,000 oz Ag measured and indicated; 443,000 oz Au and 22,761,000 oz Ag inferred. More information is available here.

Endeavour Silver Corp. (TSX: T.EDR, Stock Forum) is a mid-cap miner that focuses on acquiring under-explored mines in historic silver districts in Mexico. The Company has posted 6 consecutive years of silver production and growth thanks to its two operating mines, the Guanacevi and Guanajuato. EDR’s goal to expand the Guanajuato project by 60% in 2011 is now pushing forward with a 33% production growth target over the next two years. The Guanajuato project, which consists of 17 properties totaling over 2,000 hectares, reported Q3 2011 production of 211,341 oz Ag and 2,993 oz Au with grades of 190 gpt Ag and 2.57 gpt Au. The company’s 2010 reserves/resources data for Guanajuato includes: 1.4 million oz Ag proven and probable; 7.6 million oz Ag measured and indicated; 7.3 million oz Ag inferred. EDR’s 2011 target for silver equivalent reserves is 100 million oz Ag at a 50:1 silver-gold ratio. More information is available here.

Great Panther Ltd. (TSX: T.GPR, Stock Forum) is a primary silver producer that owns two operating mines in Mexico. GPR purchased its flagship project, the Guanajuato Mine Complex (GMC), in 2005 and has since rehabilitated the historical property while continuing exploration. Silver and gold production from the GMC in 2010 totaled 1,019,856 oz Ag and 6,619 oz Au. With recent exploration confirming the continuity of silver-gold mineralization, GPR states the mine will deliver increased silver and gold production in 2012.

And situated within 26 km of Great Panther, 17 km of Endeavour and 34 km of AuRico, Golden Fame Resources Corp. (TSX: V.GFA, Stock Forum), has stepped in as the newest participant in the mineral-rich Guanajuato district with its historical Algun Dia gold-silver-copper project. Covering an area of 190 hectares, the Algun Dia property is in close proximity to the other mines and includes similar geological characteristics:

A mining and exploration company focused on the acquisition and development of historically productive properties, GFA is well-positioned with its strong leadership, solid funding and ambitious exploration program. The Company’s management, which possesses an option agreement to acquire a 70% interest, brings several decades of experience to the Algun Dia and includes Graham M. Clark (former Chief Council of Newmont) and Lawrence Dick (P.Geo Ph.D Economic Geology, former Director of Exploration for Chevron Minerals Ltd.). In addition, a June financing of $7 million has placed the Company in a healthy financial position for extensive exploration and development, with $2 million set aside for exploration.

The Algun Dia property has shown considerable merit through recent activity, having attracted several bids from the nearby miners. In April 2011, the GFA exploration team collected 73 soil samples from underground workings and surface outcrops. According to management, these samples indicate that “anomalous values of gold and silver occur not only within the mineralized quartz-hematite veins, but also in the silicified volcanics in the hanging wall of the San Cayetano structure.” Selected assays include the following:

The Company recently announced significant progress with its 2011 drill program, which will total approximately 7,000 metres to test the on-strike and down-dip extension of surface outcropping and historically mined silver-gold-copper mineralization at the Algun Dia. To date, 14 out of 20 diamond drill holes, totaling 3,648 metres, have been completed. Drill hole logging confirms that all 14 holes have intersected the highly-anomalous main target, the San Cayetano vein, which exceeds 10 metres true width underground. According to GFA, drill core displays intense silification, multiple episodes of brecciation, course-grained chalcopyrite, and classic epithermal vein textures. Core assays are expected soon as a second drill rig has been added to complete the program.

With the 2011 program nearing completion, 2012 could bring big news from the Algun Dia. Being a well-financed and well-managed junior explorer, Golden Fame is in a strong position to gain considerable attention in a region known for its rich deposits. With its neighbours enjoying considerable success and the high price of silver and gold drawing interest to precious metals, it’s likely that GFA’s story is just starting.

For more information on Golden Fame, go to www.goldenfameresources.com.

Disclaimer: the author Nick Bedford does not currently hold any shares of any of the companies mentioned in the article. However, the author reserves the right to acquire interests in any of the companies mentioned after 36 hours have elapsed upon initial publication of this article.

Nick Bedford

Nick Bedford is an independent blogger and writer who is based in Vancouver and specializes in resource industry issues.

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