Drill results from the Paredones Amarillos gold property in Baja California Sur, Mexico, are proving encouraging for Baja Gold (TSE) and Echo Bay Mines (TSE).
The latter can earn a 51% interest in the property from Baja by spending US$4.5 million and paying US$300,000. It can increase this 60% by spending an additional US$2 million and paying US$1 million.
Echo Bay’s recent drilling includes 23 reverse circulation holes, 16 of which were drilled outside the known resource area on the property. A December, 1991, reserve estimate by consultant Derry, Michener, Booth and Wahl put the total resource in all categories at 8.94 million tons grading 0.051 oz. gold per ton, with about 60% considered proven and probable. All the holes encountered gold mineralization, the best four of which are in a cluster to the southwest of the known resource.
Hole P-94-005 intersected 173.9 ft. grading 0.055 oz. gold; P-94-006 intersected 101.7 ft. grading 0.053 oz; P-94-010 intersected 164 ft. grading 0.080 oz.; and P-94-016 intersected 108 ft. grading 0.095 oz. The best hole in the known mineralized zone is P-94-008 which returned 193.6 ft. grading 0.072 oz.
The drilling also indicates the mineralized zone is dipping at a shallower angle than previously thought.
Echo Bay expects to drill another 50 holes this year.
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