Farallon beefs up G-9 deposit with infill drilling

Farallon Resources (FAN-T) intersected its highest grades yet at the G-9 deposit at its Campo Morado polymetallic project in Guerrero State, Mexico.

The company has results from 16 infill drill holes in the Southeast zone and and five step-out drill holes in the new zone north of the San Raphael fault.

Infill drilling next to the original G-9 discovery returned the best grades on the property so far where a 16-metre intersection graded 27.5% zinc and 2.71% copper.

Farallon shares increased 5 or 6% to 87 in Toronto today on a trading volume of about 2.4 million shares.

The company says that infill holes are the priority at the moment.

Farallon plans start production Campo Morado by 2008, producing an estimated 120 million lbs. zinc per year, 15 million lbs. copper, 1 million oz. silver and gold and lead as byproducts.

The inferred mineral resource, as of last November, was 5,570 tonnes grading 2.8 grams gold per tonne, 186 grams silver, 1.9% copper, 1.3% lead, and 7.3% zinc per tonne.

The company is spending 140 million for mine and mill construction and plans to operate at 1,500 tonnes per day.