Mexican Gold (CVE:MEX, FRA:4QW1) – Drilling Update: 77.2 Meters Of Mineralization In Resource Expansion Drilling
Mexican Gold’s announcement this week tells us the Las Minas property will be growing in both size and grade.
MEX is currently in its phase 2 diamond drilling program at its Las Minas property in Veracruz state. The program’s focus is to expand the resource at the El Dorado/Juan Bran zone, which currently hosts over a million gold equivalent ounces.
This week the company announced that it intersected long intervals of strong chalcopyrite, bornite and magnetite mineralization at the El Dorado/Juan Bran zone at Las Minas.
The news of long intervals of mineralization is significant. Gold occurs in magnetite and sulfide, especially chalcopyrite-bearing skarn. On the other hand, strong skarn alternation without appreciable magnetite or sulfide generally does not contain significant gold.
Hole LM-17-ED-40, located on the east side, intersected a 21-meters interval of chalcopyrite, bornite and magnetite mineralization at a depth of 83.0 meters and continuing to 104.0 meters. A second interval of 56.2 meters starting at 123.6 meters and continuing to 179.8 meters contains stronger mineralization.
The upper 21-meter mineralized interval is outside the outline of the mineral resource estimate, and the lower intersection extended the mineralization a further 23 meters below the resource lower constraint.
Mexican Gold has also completed two holes to test the western extension of El Dorado/Juan Bran. Hole LM-17-JB-19 intersected a 3.0-meter mineralized interval from 89.0 meters to 91.0 meters, and another 8.0-meter interval from 99.0 meters to 108.0 meters. Again, mineralization consisted of highly visible chalcopyrite, bornite and magnetite. The intersections extend the mineralization 65 meters west of the current zone mineral resource estimate footprint.
To put these holes into perspective, the current resource at El Dorado/Juan Bran encompasses 420 meters in width, 600 meters down dip, and 6 to 38 meters in varying thickness. LM-17-JB-19 contains 44 meters of unaccounted resource in thickness, and the step outs extend the resource 65 meters to the west. This hole, by intercepting above and below the existing model, shows that the resource could actually be more than double the thickness in certain areas.
From what we have seen visually, LM-17-JB-19 looks like the best hole to date.
There is no doubt MEX will continue to expand its tonnage – but we are more excited in management’s conviction that LM-17-ED-40 and its mineralization will also increase grade. We are excited to see what the assays report, and are expecting results in 2-3 weeks.
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