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Until March, 2021, Gunpoint held a 100% ownership of the La Gitana project (“La Gitana”) located in the eastern part of Oaxaca State. La Gitana is a low-sulfidation epithermal system structurally controlled by northwest trending faults and hosted in the rhyodacitic rocks and volcaniclastic sediments. Two primary sub-parallel structures control the mineralization, Cerro Di Oro, a quartz breccias-vein and stockwork system and La Gitana, a vein system with narrow silver-gold ore shoots and base metal sulfides.
Previous work consisted of geological mapping, channel sampling, IP-Resistivity geophysics and core drilling. A 38 hole diamond drill program tested the Cerro Di Oro structure approximately 500 meters in length, 50 to 150 meters wide and 50-300 meters deep. The drill results returned an average grade of 0.71 g/t gold and 27 g/t silver.
Gunpoint was unable to reach a favorable surface rights agreement with the Santa Maria Lachixonace Ejido community to conduct further exploration. The Company agreed to sell La Gitana and the Pena Blanca prospect to Inomin Mines Inc. for $25,000 and 1.0 million common shares of Inomin. Gunpoint retains a 1.5% NSR on Pena Blanca. Inomin has the option to purchase 0.5% of the 1.5% NSR for $1.0 million dollars.
