The target at Bonanza is high grade silver and base metal skarn mineralization in an area of small scale historic mining activity. No modern mineral exploration is recorded. Consultants working for Eurasian Minerals Ltd. completed a small amount of sampling. Silt geochemistry shows anomalous silver and base metal values associated with a broad alteration zone associated with the know mineralization.
The Bonanza area is underlain by limestone formations of Jurassic through lower Cretaceous age. At least two intrusive phases cut these rocks; a pyritic granodiorite porphyry stock, and an equigranular diorite pluton. All mineralization and hydrothermal alteration appears to be associated with the granodiorite porphyry and related dikes. Marble and hornfels extend 50 to 200 meters away from the granodiorite. Sulfide mineralization and calc-silicate skarn appear to be restricted to high angle structures that cut and sometimes form contacts between sediments and porphyry. The structures have had post-mineral movement, so that skarn and sulfide mineralization is sheared and cut by late, argillic alteration and fault gouge.
Exploration Plans
The Company plans a comprehensive property evaluation, including geological mapping, geochemical sampling, detailed sampling of known mineral occurrences and prospecting in the area of the alteration zone.
Option Terms
Rosa Blanca and Bonanza are two mineral exploration properties included in an option agreement with Eurasian Minerals Ltd. Rosa Blanca consists of a single tenure of 9,900 ha located in San Luis Potosi, Mexico. Bonanza is a 3,025 ha property located in Hidalgo, Mexico. The option agreement, dated September 21, 2011, gives the Company the right to earn a 100% interest in both properties by issuing one million shares to Eurasian and completing $5 million in exploration expenditures over six years. Eurasian will retain a 3% NSR Royalty, of which 1.5% of precious metal royalty and 2% of base metal royalty can be purchased for $2M CDN. There will be an advance royalty payment of 35 oz. Au (equiv.) in years 5 to10 following exercise of the option and 60 Oz. Au (equiv.) from year 11 onward. In addition, Windstorm will issue 500,000 shares to Eurasian upon definition of a minimum 500,000 oz. Au or Au equivalent 43-101 resource. In addition to the above, the Company will be responsible for certain payments due upon exploration milestones and a 1% NSR Royalty to the underlying property vendors. The entire package of payments and royalty can be purchased at any time for $US1.8 million.
