Cepeda finds high-grade gold in South Carolina

Alberta-based Cepeda Minerals (CMM-V) has discovered a pocket of high-grade gold mineralization at its Buzzard property in South Carolina.

The company encountered near-surface gold grades in eight of the first 10 holes. Deeper drilling on the 11th hole intercepted a zone of high-grade material.

Hole 11, the third drilled below 400 ft., intercepted 96 ft. grading 0.313 oz. gold per ton from 396 to 492 ft., including 46 ft. of 0.49 oz. from 446 to 492 ft. The last 6 ft. of the hole averaged 1.13 oz., leaving mineralization open at depth. The upper portion of the vertical hole also intercepted 132 ft. (starting at 6 ft.) grading 0.05 oz.

A second fire assay evaluation for each of the high-grade values from this new lower zone of mineralization shows a strong correlation to original values. The second assay for the 96-ft. interval returned 0.29 oz., while the 46-ft. interval returned 0.46 oz. The last 6 ft. returned 1.03 oz. per ton.

Dennis LaPointe, Cepeda’s project geologist, says most of the high-grade zone consists of a coarse, angular breccia with strong silicification, seritization and chloritization in the matrix. Small grains of gold can also be seen with a hand lens.

As a result of the discovery, Cepeda has budgeted US$500,000 for another 7,000 ft. of drilling through the end of the year. A second rig has also been sent to the site. The funds were provided by a private placement of US$2 million.

The company has since completed, to a depth of 216 ft., a 12th hole. The company expects to find a shorter mineralized upper zone there. Cepeda also reports that hole 13, which was drilled to a depth of 728 ft., appears to intercept the lower zone of mineralization, with small intervals of visible gold in the lower section of the hole. Assays for these holes are pending.