Rob McEwen, the man who founded Goldcorp (G-T, GG-N) and discovered one of the world’s richest gold mines at Red Lake in Ontario, is now turning his gold and silver exploration thumb to Mexico with encouraging results.
The gold mining magnate and chief executive of US Gold (UXG-T, UXG-x) is reporting high-grade mineralization over excellent widths from the company’s El Gallo project in Sinaloa state, Mexico.
Drill highlights include a step out hole 50 metres west of previous drilling, which returned 1,082.4 grams silver per tonne over 31.7 metres, including 6,046.1 grams silver per tonne over 4.6 metres and 10,461 grams silver per tonne over 1.2 metres.
Core drilling has confirmed conventional rotary drill results on top
of finding a new and deeper zone, the company reports.
Conventional rotary drilling along the east portion of the vein has returned 471.6 grams silver per tonne over 27.4 metres, including 1,320 grams silver per tonne over 1.5 metres.
Conventional rotary drilling has discovered a new high-grade area in the southwest part of the project, intersecting 886.5 grams silver per tonne and 5.7 grams gold per tonne over 6.1 metres.
Results for an additional four core holes include one which cut 1,082.4 grams silver per tonne over 31.7 metres, including 6,046.1 grams silver per tonne over 4.6 metres and 10,461.0 grams silver per tonne over 1.2 metres.
The total strike length has now been extended to 450 metres, with the mineralization open in every direction.
The three remaining core holes were designed to confirm the initial
conventional rotary drilling and to prepare a Canadian National Instrument 43-101 resource estimate.
US Gold believes Hole GAX008 is important because it may have intersected the top of a high-grade gold-silver ore shoot. The hole returned 1593.2 grams silver per tonne and 32.8 grams gold per tonne over 4.9 metres. The hole also extended the shallow dipping zone to the north, returning 370.5 grams silver per tonne over 10.5 metres and intersected a possible new zone at depth, 595 grams silver per tonne over 2.2 metres.
In addition, geochemical surface sampling in the project’s southwestern zone indentified a historical mine working that appears to be a continuation of the main mineralized structure.
“With each new drill hole El Gallo is looking more like a significant
high-grade discovery,” McEwen stated in a press release. “With this type of grade, our regional exploration will be increased drastically. US Gold is becoming an interesting exploration story.”
US Gold controls 550,000 acres immediately around El Gallo.
In Toronto at press-time, US Gold was trading at C$2.55 per share. The company has a 52-week trading range of 50¢-$3.73 per share.
The U.S.-based gold and silver exploration company focused on northeastern Nevada and north-central Mexico, has 79.1 million shares outstanding.
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