Canplats gains 22% on ‘Red Road’ results

VANCOUVER — The Camino Rojo discovery in Mexico is rapidly becoming an exciting story for Canplats Resources (CPQ-V).

Since tracing red-stained road fill to its quarry and staking the 1,500 sq.-km property just six months ago the company’s share price has gained 600% based on long intercepts of significant gold, silver, lead and zinc mineralization.

The last days of April were no exception. Two sets of drilling results from Camino Rojo boosted Canplats 55 or 22% over three days of trading to close at $3.09.

The first set of results came from two reverse circulation (RC) drill holes testing the upper oxide layer of the main Repressa zone.

Four holes drilled at 50-metres intervals along a north-south section near the centre of the zone all returned long intercepts of close to 1 gram gold per tonne. At the north end of the section, hole 38 cut 248 metres from surface grading 1.46 grams gold, 9.64 grams silver, 0.21% lead and 0.26% zinc. At the south end, hole 34 returned 300 metres from surface grading 0.97 gram gold, 8.07 grams silver, 0.32% lead and 0.39% zinc.

On a parallel section, located 100 metres east hole 39, cored 224 metres from surface grading 1.5 grams gold, 24.45 grams silver, 0.57% lead and 0.53% zinc.

Two days later Canplats released another set of results, these ones from two diamond drill rigs testing mineralization at depth.

Four diamond holes were collared within the Repressa zone and all intersected broad mineralized intercepts. Hole 7 cut 424 metres grading 0.53 gram gold per tonne, 13.36 grams silver per tonne, 0.12% lead and 0.46% zinc from 56 metres below surface, including 110 metres grading 1.1 grams gold and 25.49 grams silver. Hole 8 cored 634 metres grading 0.44 gram gold, 12.84 grams silver, 0.13% lead, and 0.33% zinc from 28 metres depth.

A fifth core hole was collared 250 metres west of previous Repressa zone drilling and intersected two zones of strong mineralization. Hole 9 returned 16 metres grading 2.34 grams gold, 18.58 grams silver, 0.03% lead and 0.12% zinc from 298 metres downhole, then cut 233 metres grading 1.18 grams gold, 6.11 grams silver, 0.06% lead and 0.33% zinc from 491 metres depth.

The lengthy step-out intersect is associated with induced-polarization and chargeability anomalies that extend from the Repressa zone to the Don Julio zone, 1 km to the southwest. To date, drilling at Camino Rojo has focused almost exclusively on the Repressa zone, though one RC hole into Don Julio returned an 8-metre intercept grading 2.27 grams gold and 5.56 grams silver.

Mineralization in the Repressa zone is hosted in weak to moderately silicified and laminated siltstones and sandstones with moderate to intense hematite alteration and localized zones with brecciation and quartz micro-veinlets.