Francisco gains ground in Guatemala

Junior Francisco Gold (FGX-V) has acquired more than 5,000 sq. km of exploration concessions, including the prospective Marlin gold-silver property, in Guatemala.

Situated 30 km west of Huehuetenango, the Marlin property has the potential to host a large, low-sulphidation epithermal gold system hosted in Tertiary-aged volcanics.

Francisco obtained the concessions, plus a joint-venture interest in neighbouring El Salvador, by acquiring Montana Gold, a privately owned British Columbian company which first discovered gold and silver mineralization in the area in 1998. The mineralization was identified in three zones over a 1.5-km strike length.

To acquire Montana Gold, Francisco has agreed to issue 600,000 shares. Also, it will issue one share for each additional minable ounce of gold-equivalent discovered above 600,000 oz. On the other properties, Francisco will issue one share for each minable ounce of gold-equivalent, if a minimum of 250,000 oz. gold-equivalent is discovered.

The Main zone on the Marlin gold-silver property has been outlined over a 350-by-200-metre area, with trench samples returning up to 13.34 grams gold and 232 grams silver per tonne over 118 metres. A total of 305 chip samples returned an average grade of 6.06 grams gold and 71 grams silver.

At the Los Cochis zone, 600 metres to the west, 82 chip samples returned an average of 1.15 grams gold and 12 grams silver.

At the Don Pancho-Don Tello zone, 200 metres south of the Main zone, 111 chip samples were collected over an area measuring 900 metres long by 10-50 metres wide. They returned an average of 3.47 grams gold and 183 grams silver.

Hosted in stockworks and breccias, the mineralization is controlled by two regional structures that coalesce around a volcanic plug. All three zones remain open along strike.

The surrounding properties host three additional gold-silver targets: La Cienega, Roundstone and El Salitre. The most advanced of these is La Cienega, which has been identified over a 1.4-km-by-250-metre area. A total of 215 rock chip samples from the silicified zone returned an average of 15 grams silver and up to 3.5 grams gold.

The deal is subject to a due diligence period ending March 31. At last report, Francisco had $35.8 million in its treasury.