Francisco aims drills at Sauzal property

Junior Francisco Gold (FGX-V) has set up two diamond drill rigs at its Sauzal gold project in the northern Mexican state of Chihuahua.

The $2-million program is expected to consist of 20 holes. During the past year, the company drilled 86 holes (14,950 metres) and delineated a 1.6-km-long epithermal gold system.

Francisco has hired Denver-based Mine Reserve Associates to calculate a geological reserve estimate.

Stratigraphic and structural studies have defined several new targets.

Down-faulted blocks to the northwest and southeast are considered to have excellent potential for expanding the West zone, which currently measures 600 by 250 metres. Studies have also identified targets east and northeast of the East zone. alteration patterns indicate that gold mineralization could exist at depth between the East and West zones, and that it could be associated with the sulphide horizon.

Regional prospecting and stream-sediment sampling have been completed over a 20-by-30-km grid surrounding Sauzal. Results indicate that Francisco’s Cuesta Colorada prospect, 1.5 km northeast of Sauzal, is structurally and geologically similar. All the stream sediments collected at Cuesta Colorada were anomalous, with gold values reaching 0.6 gram per tonne. A grid-controlled sampling program will test an intrusive-hosted bulk-tonnage target 5 km northwest of Sauzal.

Denver-based consultant Behre Dolbear & Co. has been retained to study the economics of the deposit. Based on information to date, Behre Dolbear believes Sauzal could support a 250,000-oz.-per-year open-pit operation.

In October, Francisco began building a 20-km road into the property. The Chihuahua state government is supplying the earth-moving equipment free of charge, while Francisco is funding the direct operating costs.