Promising drill results at Typhoon’s Fayolle

A 10-metre intercept averaged 7.14 grams gold per tonne at Typhoon Exploration‘s (TYP-V) 100%-owned Fayolle gold project in Quebec’s Abitibi region.

The same hole, no. 24, included 11.36 grams over 6 metres with visible gold specks hosted within an intensely brecciated zone and monzodioritic intrusions, the company reports.

In addition, hole 24 intersected a quartz-carbonate-cosalite vein with silver-tellurium and returned values of 109 grams silver per tonne, 2,433 parts per million bismuth and 248 parts per million molybdenum over 1.6 metres.

Two other holes also returned decent grades with hole 23 intersecting 1.54 grams gold over 3 metres, and hole 22 cutting 2.78 grams gold over 7 metres including 13.05 grams gold over 1 metre.

The results sent Typhoon’s shares up 5¢ apiece or 5.3% to close at 97¢. Over the last year, the company has traded in a range of 15¢ (March 4, 2010) to $1.71 per share on Sept. 20.

The intersections came from the southwestern portion of the Fayolle deposit, about 30 metres west of the previously reported hole 4, which returned 112 grams gold over 6 metres.

The new intersections confirm the lateral extension of mineralized lenses previously defined in holes 19 to 21, the company says, with the mineralized lenses oriented north-northwest and hosted within an important deformation corridor that is usually oriented east-west. The main deformation corridor is 2.5-km long by 1-km wide and open at depth.

Under an option agreement with Aurizon Mines (ARZ-T, AZK-X), the latter can acquire up to 65% of the Fayolle project by spending a total of $25 million. Of that, about $6.5 million has been budgeted for the current 50,000-metre drill program underway. So far nine holes have been drilled (about 2,000 metres) and assays are pending.

Typhoon has 19 million shares outstanding, $5 million in cash and no debt.