Geology of Bilbao
The project lies in the Central Silver Belt of Mexico, one of the worlds’s most prolific sources of silver over hundreds of years, and Bilbao is in an old mining district.. High-grade, silver-bearing ores were initially discovered and exploited in the 1600s.
A
significant amount of mining was completed on the Bilbao Property between
1900 and 1927 by the International Mining Company (Consejo De Recursos
Minerales, 1992). Additional work may have been done on the property
from 1939 -1945. No significant mechanized work is known to have been
completed after 1945. The Bilbao Property was controlled by Frisco from
1945-1967 and Penoles from 1967 to 1991 (Kilborn, 1995).
An estimated one million tons have been mined from underground workings
and two glory holes (Kilborn, 1995). High grade mineralization was followed
to exploit direct shipping ore. There is no evidence of drilling on the
property. Documented mining has been conducted only to a depth of 76
meters (250 feet) where sulphide mineralization was encountered. 
Two primary types of mineralization are found on the property: distal Copper- lead-zinc silver pyroxene skarn mineralization has been documented within altered Cretaceous Age carbonate sediments near the contact with a granitic intrusive. Hydrothermal veins, of secondary importance, are hosted by both the granite and the sedimentary rocks. The zinc-lead skarn deposits could grade laterally into both gold-bearing garnet skarn or massive zinc-lead manto and chimney replacement ores hosted within the carbonate rocks.
Oxidation has reached a depth of about 80 metres on the property, creating an upper oxide resource that may overlie a significant sulphide resource. Zinc, lead, and copper oxides/carbonates and silver chloride minerals are found in potentially economic quantities within the oxide zone.