Santa Cruz Gold intersects gold mineralization in Sinaloa

Drilling by Santa Cruz Gold (SCG-T) continues to intersect gold mineralization on its two properties in Sinaloa state, Mexico.

At the Magistral property, a 15-hole program was carried out on the Samaniego Hill zone. Highlights include: 17 metres grading 1.5 grams gold per tonne, starting at a depth of 35 metres, for hole 363; 38 metres grading 1.6 grams, starting at 5 metres, for hole 371; and 14 metres grading 4.6 grams, starting at 15 metres, for hole 380.

The remaining holes intersected anomalous gold zones between surface and 121 metres but were either of lower grade or smaller width than holes 363, 371 and 380.

The company also completed 37,000 metres of infill drilling on the San Rafael zone, 500 metres to the southeast. Santa Cruz is conducting a new reserve calculation, as well as metallurgical tests and geotechnical work on heap-leach pad construction.

An independent audit recently estimated that the property hosts an inferred resource of 28 million tonnes grading 1.5 grams gold. The San Rafael deposit accounts for 20% of the total resources, with the remainder contained in the Samaniego Hill, Sagrado Corazon and Lupita zones. Exploration drilling will continue to focus on the latter three structures.

Meanwhile, on the former-producing El Escobal property, Santa Cruz has drilled nine holes, seven of which intersected more than 10 metres grading greater than 1 gram gold. All intersections occurred between 79 and 159 metres downhole.

Highlights of this first-phase program include: 46 metres grading 2 grams gold for hole 26 (from 113 to 159 metres) and 32 metres grading 3.5 grams for hole 25 (from 90 to 122 metres).

The company is also carrying out metallurgical tests and a resource study. A second-phase drill program is scheduled to begin in January.