Canamex Resources’ (CSQ-V) shares soared to new heights after the company released the best hole to date from its Bruner gold-silver project in central Nevada.
On July 18 the junior reported the monstrous hole returned 118 metres grading 4.08 grams gold per tonne starting at 88 metres, including a 2-metre interval of 132.5 grams gold from 139 metres.
Investors pleased with the results sent Canamex shares that day up 290% to 39¢ apiece, as 23 million shares changed hands.
The hole, which exceeds results found in the historical data and the company’s previous drilling, indicates Bruner may be hosting a deposit of “significant size and grade,” Canamex outlined in a press release.
“This drill-hole intercept opens up a new exploration area and deposit type within the Bruner property,” the company’s chairman and CEO Greg Hahn said in the release.
The gold-rich interval comprised breccias and hydrothermal quartz, pointing to a “robust hydrothermal system,” Hahn said.
The intercept came from the first hole of the company’s six-hole 2012 summer drill program. Canamex hopes the program will provide enough information to upgrade the property’s historic resource to a National Instrument 43-101 compliant estimate.
The junior expects to release assays for the remaining five holes on a once-a-week basis.
On July 23, the company said it re-assayed the 2-metre interval to verify the gold values and found that the intercept came back at 137 grams gold, which is slightly better than the initial report.
The Bruner property hosts a historical resource of 385,000 oz. gold. The junior says Bruner’s nearby historic Penelas vein produced 100,000 oz. gold at an average grade of 0.56 oz. gold per ton (19.2 grams gold per tonne).
Two of its first three holes drilled by the company on the Penelas vein returned over 10 grams gold per tonne.
The company started drilling the Bruner property last October, and by March this year had completed 2,400 metres in 13 reverse-circulation drill holes.
The standout hole from that batch cut 4 metres averaging 12.97 grams gold and 146 grams silver per tonne, including a 1-metre interval carrying 24.97 grams gold and 151 grams silver.
Canamex says it’s continuing with column-leach tests on bulk samples from the historic resource area, where gold recoveries of up to 81% have been achieved after 40 days.
The junior has an option to acquire up to 75% of the Bruner property in Nye County, which consists of 98 unpatented and 21 patented mining claims covering 8.5 sq. km.
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