Francisco hits more gold

The latest drill results at Francisco Gold’s (FGX-V) wholly owned El Sauzal gold project in Mexico’s Chihuahua state are expected to expand reserves.

Of the 29 drill holes recently completed, 85% intersected significant gold mineralization. The Vancouver-based junior has drilled a total of 124 holes (20,250 metres) at El Sauzal to date and has delineated a high-grade epithermal gold system that is still open to the west, northeast and south, as well as at depth.

A preliminary reserve estimate by Mine Reserves Associates tallied 6.9 million tonnes averaging 2.13 grams gold per tonne, for 3.22 million contained ounces. Francisco Gold believes that this figure will grow once results from the current drill program are included.

In the West zone, drill holes 99, 101, 104 and 118 expanded the continuity of mineralization eastward: hole 99 hit 21.1 metres grading 3.89 grams gold per tonne; hole 101 intersected 83.9 metres grading 3.52 grams gold; hole 104 cut 136 metres grading 4.21 grams gold, including a 41-metre interval grading 7.57 grams gold; and hole 118 hit 141 metres grading 6.95 grams gold, including a 36-metre interval averaging 18.36 grams gold.

Towards the southeast, six stepout holes tested a down-faulted block and returned consistent gold mineralization: hole 107 hit 31 metres grading 3.13 grams gold per tonne; hole 110 cut 45 metres averaging 3.95 grams gold; and hole 114 intersected 18 metres grading 4.18 grams gold before it was halted because of recovery problems.

A number of in-fill holes were put down to better define the existing resource, including hole 120, which intersected 88 metres grading 5.3 grams gold; hole 122, which intersected 83 metres grading 4.78 grams gold; and hole 124, which hit 31 metres grading 1.83 grams gold.

In the East zone, drill results indicate the width of the mineralization extends eastward by at least 100 metres and remains open. Holes 100, 109, 111, and 113 demonstrate the continuity of sub-parallel structures: hole 100 intersected 37 metres averaging 9.19 grams gold, including a 12-metre intercept grading 23.89 grams gold; hole 109 cut 49 metres grading 2.05 grams gold; hole 111 hit 19.6 metres grading 4.62 grams gold; and hole 113 intersected 32 metres grading 2.45 grams gold.

Two stepout holes tested a large silicified outcrop situated 350 metres east of the East zone. One of them, hole 106, intersected 5 metres grading 1.08 grams gold at a depth of 105 metres and ended in mineralization. The company intends to investigate the area’s potential with follow-up drilling.

On the West Lip zone, holes 115, 117 and 119 were drilled over a strike length of 250 metres and were designed to test new structural control models.

Results indicate that high-grade zones of mineralization follow a northeast-trending structure.

Hole 115 intersected 29 metres grading 3.19 grams gold per tonne, including a 2-metre intercept grading 73.1 grams that is interpreted to be a feeder zone.

Hole 117 cut a 15-metre interval grading 1.81 grams gold, followed by an 18-metre section grading 0.92 gram gold.

Hole 119 intersected three mineralized zones. At a depth of 6 metres, it cut 17 metres grading 2.74 grams gold, followed by a 27-metre interval grading 1.77 grams gold at a depth of 34 metres. A 16-metre interval grading 1.05 grams gold was hit at a depth of 73 metres.

Francisco Gold will attempt to expand the mineralized area 500 metres to the west by drilling previously untested ground.

Francisco Gold has almost completed an all-season road to the site, and a permanent camp is expected to be built by May. Bulk metallurgical test work and engineering studies will commence in May; new drilling will also get under way that month.