Vancouver — New exploration drifts on the Villalpando-Poniente vein have yielded bonanza gold and silver grades from channel sampling some 100 metres from surface on
Channel sampling of exploration drifts yielded a 38-metre interval that graded 70.9 grams gold and 505 grams silver per tonne. The high grades occur in a 76-metre length that averages 45.1 grams gold and 311 grams silver.
Further significant results from the sampling, along a total of 275 metres of drifting, include 21.7 grams gold and 149 grams silver over 54 metres, and 8.91 grams gold with 63.5 grams silver over 53 metres.
Mexgold believes that a large alteration zone seen on surface may reflect the underlying high-grade mineralization and is eager to test the bonanza zone closer to surface. Underground, the company plans to extend the high grades along srike.
The company notes that historical reports of bonanza grades are commonplace at El Cubo. The property also contains medium grades of precious metals in veins as well as bulk-tonnage targets.
Meanwhile, drill-testing of the northwestern extensions of the La Loca vein returned average grades of 6.22 grams gold and 321 grams silver over 1.1 metres. Mexgold believes that the La Loca vein is part of the same system as the Villalpando structure which was the most productive vein at El Cubo.
Crews drilled 19 holes in the first round of drilling at the El Cubo-Las Torres mine and came up with 15 intercepts that grade higher than 2 grams gold equivalent cutoff, the lowest grade intercept being 1.2 metres of 0.3 gram gold with 127 grams silver from the San Nicolas zone.
Mined from the early 1800s, the vein has been followed north along more than 2 km of strike — beyond the historic workings onto the company’s recently acquired Las Torres concessions.
The drilling at El Cubo is part of an ongoing drill program of 60,000 metres launched last June as part of efforts to expand the resources to about 2 million oz. gold equivalent.
The El Cubo mine produced an average 58,000 oz. gold-equivalent per year over the past five years. The mill was expanded in 2001 and has since been operating below its 1,400-tonne-per-day capacity. Mexgold hopes to increase production to 100,000 oz. per year. Current metal recovery is 91-92% for gold and 85% for silver.
Once the mine is running at full capacity, the current cash costs of US$235 per oz. should drop to an estimated US$190.
At the end of last June, proven and probable reserves — estimated by using channel samples collected from drifts, crosscuts and raises — stood at 1.49 million tonnes grading greater than 3.81 grams gold-equivalent per tonne. The average grade is 5.36 grams gold and 162 grams silver per tonne over 1.26 metres.
An inferred resource of 1.19 million tonnes grading 5.21 grams gold and 345 grams silver per tonne remains in the pillars.
The El Cubo mine area contains about 40 mineralized veins, which are directly related to faults. The largest is the northwest-striking, steeply dipping Villalpando vein, which contains 40% of the known resources. Some of the mineralized veins strike northeast and dip 70-90. Veins are generally 1-2 metres wide, though several 10- to 20-cm-wide veins have been mined selectively, owing to their high grade. Weak stockwork veining and mineralized breccia zones up to 10 metres wide are present.
Mexgold bought the 45-sq.-km El Cubo project in March 2004. The project is operated by Minera de El Cubo, Mexgold’s local subsidiary.
In October, Mexgold struck a lease deal with
The Las Torres mine was a significant gold and silver producer for 27 years and has been on care and maintenance since 2003. There are three other past-producing mines on the property.
The Peregrina mine which lies adjacent to El Cubo’s mine workings, provides ramp and shaft access beneath the lowest workings at El Cubo.
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