Mexico 29 August 1972 R. 0. Wheaton Hugh Douglas
THE SAMALAYUCA COPPER DEPOSITS
Attached is a report in two volumes on the Samalayuca sedimentary copper mine in Chihuahua, Mexico. The mine was brought to my attention by Don M. Irwin, and old friend of mine and our families, who is a lawyer living in El Paso and represents the Mexican owners of the mine. They are all reputable businessmen.
Briefly, the mine sells a small quantity of direct shipping ore to the ASARCO smelter in El Paso. Copper sulphides and silver are disseminated in an altered Cretacious sandstone. Mineralization apparently is controlled by vertical fracturing resulting from gentle domal uplift of the area. The ore shipped averages 1.0 percent copper and 0.6 percent silver. The deposit is located 40 miles from Juarez, is close to a labor supply, and apparently has adequate water but the report does not mention who owns the water rights.
As you know, Wes Bourret wrote a report favorable to mining in Mexico, but Bud Wilson is not prepared to recommend that Utah begin explora-tion and development work in that country at this time. An exceptional copper deposit could change the outlook.
After reviewing the report, would you let me have your thoughts on this mine?
Hugh Douglas
HD/nam Attachment