NYSE MKT: TGD • $0.43     TSX: TMM • $0.58     Gold: 1287.43

Caballo Blanco

Ownership: 100% Timmins Gold Corp.

Land Package: 19,650 ha of land of which Timmins Gold is the registered owner. 

Description: The Caballo Blanco property is comprised of fourteen contiguous mining claims covering an area of 19,650 hectares.

Location: The Caballo Blanco Project is located on the eastern coast of Mexico (at 19°8'N, 96°8'W, 19 m (62 ft) in the state of Veracruz 65 km northwest of the city. Veracruz is a major port city and municipality on the Gulf of Mexico and is well connected with an international airport. The city is located along the coast 90 km north of the state capital of Xalapa along Highway 140 and has a population of 554,830.

Access: The Project is easily accessible and close to infrastructure. All materials and supplies needed for ongoing exploration, development and mining can be transported by truck via the Pan American Highway and new paved roads. The topography is semi rugged reaching elevations up to 700 meters from sea level. Communications are well established with phone lines and high speed internet. Water supply is derived from local wells.

Climate: Veracruz has a tropical wet and dry / savanna climate. The wet season lasts from June to October during the high-sun months with July being the wettest month with a total of 385 mm of rainfall. The dry season is November to May with the driest month being March with only 13 mm of rainfall. The average temperature is 25.3°C, with minimum and maximum temperatures of -5 C and 50 C. The average annual rainfall averages 1564 mm.

Geology & Mineralization: Two large areas of epithermal gold mineralization have been discovered within the current CB property, referred to as the Northern Zone (includes La Paila) and the Highway Zone. Both are prominent high-sulphidation epithermal gold prospects that occur within extensive areas of clay and silica alteration.

The gold is very fine and occurs within a vuggy and brecciated silica alteration of an original andesite host rock in the upper levels of the surrounding epithermal system. The elongate and silicified gold rich mineralization at La Paila likely formed from fluid rising along a north trending fault structure well above a deeper intrusive ‘heat source’.

Similar silica and clay alteration zones have been recognized at La Cruz and the Highway Zone that lie along a north-south linear trend over a distance greater than 9km.

La Paila, located on the north end of this trend, contains significant gold mineralization with drill intercepts of 2.2 gpt Au over 90 m (08CDN-04) and 0.58 gpt Au over 216 m. Current exploration has shown that the main zone is oxidized at surface and extends several hundred metres in vertical depth.

Caballo Blanco:

Current Resources

The resource estimate is based on 145 diamond drill holes completed since the discovery of the La Paila mineralized zone.  Block sizes are 20 x 20 x 5 metres.

Caballo Blanco – PEA Summary

Life of Mine (Years) 7.5
Initial Capital Cost ($M) $84.8
Cash Operating Cost ($/oz) $784.0
Total Material Mined (Mt) 131.3
LOM Strip Ratio (waste:ore) 1.66:1
Metallurgical Recovery (Au/Ag) (%) 81% / 37%
Total Gold Mined to Leach Pad (oz Au) 849,005
Total Recovered Gold (oz Au) 687,694
Total Silver Mined to Leach Pad (oz Ag) 3,605,546
Total Recovered Silver (oz Ag) 1,334,052

Source: Caballo Blanco PEA

1: The Caballo Blanco preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Caballo Blanco preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability


Since acquiring the Caballo Blanco asset in December 2014, the Company continues to work towards advancing the project and has:

The 2015 budgeted cost for this work is $0.5 million, of which $0.3 million has been spent through to September 30, 2015.

Timmins Gold – Caballo Blanco