Coronado Resources (CRD-V) has hit upon some high grade results as it continues to get a clearer picture of what exactly it has on its hands with its Madison gold and copper project in Montana.
The past producing underground mine yielded two gold rich diamond drill holes that were designed to test the extent of known gold zones and find new copper zones.
The first hole was drilled below the lowest working level of the mine at 152 metres and intercepted 9 metres averaging 11.81 grams per tonne, included in that intercept was 4.5 metre section containing 19.93 grams gold.
The second hole was drilled to the north of the first hole and intercepted 11 metres averaging 14.72 grams gold, including 5 metres grading 22.92 grams gold.
Both holes averaged roughly 56 grams silver and 2% copper.
The company is currently mining crosscuts in the first level of the mine.
Last year, the company sent gold oxide from the crosscuts support pillars for processing at Barrick Gold’s (ABX-T, ABX-N) Golden Sunlight Mine.
Coronado wholly owns the Madison which sits 56-km southeast of Butte, Montana.
The company began selling high grade ore from the historic mine in 2008.
A pre-existing decline of 365 metres gives it access to two levels of high grade copper and a third level of sulphide gold zone.
Coronado has a crushing plant, power line, compressor and weigh scale on site to process the gold and copper it hits upon as it pushes ahead with underground development.
Its drill program is largely being funded by cashflows generated from gold and copper shipments.
In addition to the gold sent to Barrick, the company also shipped 1,300 tonnes grading 20% copper to China last year.
In January of this year, Coronado began shipping sulphide gold mineralization to a Kinross (K-T, KGC-N) mill in Washington State.
In Toronto on Oct. 28 the company’s shares were up 13% to 27¢ on 235,000 shares traded.
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