Gammon Lake drills Belen structure at Ocampo

Halifax-based Gammon Lake Resources (GAM-T) will perform underground exploration drilling on the Belen structure at its Ocampo gold-silver property in Mexico’s Chihuahua state.

Belen is an extension of the San Jose y San Juan structure, which is said to be geologically similar to the Aventurero zone. In a drill program completed last December, the Aventurero zone produced several high-grade drill intercepts.

Gammon is in the midst of a prefeasibility study of the Ocampo project under the direction of Watts, Griffis & McOuat.

So far, Gammon has delineated measured and indicated resources of 21.7 million tonnes grading 1.44 grams gold and 57 grams silver per tonne, equivalent to 1 million contained ounces gold and 39.6 million contained ounces silver. A further 5.8 million tonnes of 1.7 grams gold and 86 grams silver lie in the inferred category.

The estimate encompasses data from 26,000 metres of drilling carried out by Gammon last year in the historic camp. It is based on a cutoff grade of 0.5 gram gold-equivalent, a 50-to-1 silver-to-gold ratio, and prices of US$260 per oz. for gold and US$5.20 per oz. for silver.