Canyon confirms El Aguila continuity

A second-phase of drilling by Canyon Resources (CAU-X) has confirmed the continuity of a gold-silver zone at the Aguila property in Mexico’s Oaxaca state.

The program entailed 2,124 metres in 38 holes to test the extent and continuity of mineralization in massive quartz veins discovered in an earlier program. Seventeen of the holes yielded more than 1 gram per tonne over 4 metres true-width, and 12 of the intervals ran over 3.5 grams. Results include:

• hole 330, which cut 6 metres (starting at 6 metres) grading 8.46 grams gold and 111 grams silver per tonne.
• hole 331, which cut 6 metres (at 36 metres down-hole) grading 1.52 grams gold and 16 grams silver and 4 meters (at 50 metres) grading 54.71 grams gold and 700 grams silver.
• hole 333, which cut 12 metres (at 2 metres) grading 4.43 grams gold and 17 grams silver, including 6 metres at 15.69 grams gold and 101 grams silver.
• hole 334, which cut 6 metres (at 6 metres) grading 9.4 grams gold and 25 grams silver.
• hole 343, which cut 6 metres (at 60 metres) grading 1.62 grams gold and 12 grams silver and 8 metres (at 68 metres) grading 10.85 grams gold and 62 grams silver.

and

• hole 348, which cut 14 metres (at 20 metres) grading 0.86 gram gold and 4 grams silver.

Given the shallow nature of the mineralization, Canyon is eyeing El Aguila as an open-pit operation. Preliminary leaching tests using 100-400 mesh indicate 94-99% recoveries for gold and 89-91% for silver.

Canyon notes that the zone occurs in a small area and that rhyolite domes and underlying sedimentary rocks extensively altered to silica remain untested. Targets are being accessed.

A preliminary independent scoping study is underway.

Canyon has spent US$500,000 exploring the 37-sq.-km property and now has three months to decide whether to commit another $3 million or accept 600,000 shares in the private vendor. Should it proceed with development, it will earn a half-interest in return for its expenditures.