Gammon drills Ocampo (September 17, 2003)

Gammon Lake Resources (GAM-T) has completed the first round of 30 step-out and infill holes on its wholly owned Northeast Ocampo gold-silver project in Mexico.

Highlights from the Aventurero zone include the following:

• Hole 92 — 6.2 metres (core width) grading 9.9 grams gold and 265 grams silver per tonne, including 4 metres of 12.9 grams gold and 331 grams silver;
• Hole 82 — 3 metres averaging 15.8 grams gold and 367 grams silver;
• Hole 85 — 7.5 metres averaging 5 grams gold and 224 grams silver, including 1.5 metres of 12.35 grams gold and 273 grams silver; and
• Hole 91 — 0.8 metre running 11.25 grams gold and 661 grams silver;

In all, the drilling cut 9 zones (Aventurero, Rosario, San Amado, Las Animas, Balvanera, Maria, Veta Negra and San Juan, plus a new zone) with at least one hole, and yielded 34 intercepts exceeding the underground cutoff grade of 3 grams gold-equivalent.

The Rosario zone was highlighted by a 10-metre interval running 3.5 grams gold and 168 grams silver in hole 93, and 1.5 metres of 9.4 grams gold and 575 grams silver in hole 78.

The lone hole to cut the San Amado zone, no. 89, returned 12 metres averaging 6 grams gold and 161 grams silver, including 3 metres of 17 grams gold and 311 grams silver.

The best of four intervals from Las Animas zone runs 5.7 grams gold and 809 grams silver over 3 metres in hole 88.

Hole 69 cut a new structure at a depth of 102 metres, and yielded 1.5 metres running 7.8 grams gold and 28 grams silver; lower down, the hole returned a 1.5-metre section grading 20.1 grams gold and 201 grams silver from the Maria zone.

The remaining holes typically grade 1-6 grams gold and 20-300 grams silver over similar widths.

The drilling is part of a 65,000-metre drill campaign aimed at increasing Northeast Ocampo’s underground resource of 3.5 million tonnes grading 5.9 grams gold and 302 grams silver per tonne (underground measured and indicated). Drilling is also designed to upgrade 4.5 million tonnes of inferred resources grading 6.1 grams gold and 298 grams silver.

The underground estimates employ a cutoff grade of 3 grams gold-equivalent, a gold price of US$300 per oz., and a silver price of US$4.61 per oz.

Gammon says the recent drilling indicates the presence of high-grade mineralization well below the limit of historic mining and in areas not previously mined.

Meanwhile, Gammon has driven its 4.5-by-4-metre ramp to within 50 metres of the Aventurero zone. The company figures it will reach the zone by month’s end, whereas the San Juan, Las Animas and Rosario zones should be reached by year-end. Ultimately, the ramp will stretch some 6 km.