BASE METALS — Insular explores for Sierra Madre gold

An exploration program has kicked into gear at the El Diamante project in Mexico’s Sierra Madre gold belt.

Insular Explorations (ISX-V), which is acquiring a 70% working interest in the gold-silver property from Blackstone Resources (BZZ-A), reports that the first of two planned phases of exploration will attempt, by means of geological mapping and geological sampling, to outline drill targets in the Encino Gordo zone.

The second phase calls for reconnaissance mapping and sampling of four other targets so as to identify new zones.

The 51,000-ha project consists of three concessions: El Diamante, La Turquesa and Encino 3. Insular is targeting bulk-tonnage gold-silver zones similar to other discoveries in the area, including the Dolores, Mulatos and Moris deposits, as well as Francisco Gold’s 3.2-million-oz. El Sauzal gold deposit, 30 km to the southeast.

Landsat (satellite) imagery has identified five areas worthy of investigation, and follow-up reconnaissance work on the Encino 3 Landsat area resulted in the discovery of the Encino Gordo zone. The zone consists of pyrite, with lesser amounts of pyrrhotite, arsenopyrite, galena and sphalerite associated with quartz veins, stockwork and breccia zones in strongly oxidized andesite volcanoclastics (flows and porphyries).

Chip sampling at Encino Gordo returned encouraging assays, the best being 3.4 grams gold per tonne over 6 metres and 2.9 grams gold over 4 metres.

Both samples also contained anomalous silver, lead and zinc values.