Capstone Gold (CSG-T) has encountered some encouraging gold and silver values in the first two holes of a planned 14-hole, 2,500-metre drill program on its Copala project, 60 km southeast of Mazatlan in Mexico’s Sinaloa state.
The initial hole, no. 05-01, yielded 5.1 metres (beginning 121 metres below surface) grading 0.6 gram gold and 85.3 grams silver per tonne, including 2.1 metres (from 123.5 m) of 1.1 grams gold and 157.1 grams silver. The company says the hole was “diminished” owing to strong faulting.
Hole 05-02 returned 8.7 metres (from 126.5 m) of 2.3 grams gold and 233.1 grams silver, including the first 1.8 metres running 8.9 grams gold and 798.1 grams silver. Individual samples from the hole run up to 2,570 grams silver per tonne and around 35 grams gold per tonne. Capstone says the hole also indicates a true thickness of more than 10 metres for the Animas-Refugio quartz vein.
The holes cut the Animas-Refugio vein some 30 metres and 75 metres down dip of historical workings of the San Carlos mine.
The 51-sq.-km Copala project is home to several northwest striking epithermal veins with lengths varying from 2 km to 4 km.
Some 3,200 metres worth of drilling by previous operator Grupo Minero Bacis on the Animas-Refugio vein returned up to 11.8 grams gold and 2,534 grams silver over 3.2 metres.
The San Carlos mine workings stretch around 300 metres and are developed over a vertical extent of 125 metres. Underground channel sampling by Bacis in the lowest levels of the mine in the 1990’s returned up to 2.5 grams gold and 300 grams silver. The work also indicated an average true width of 4.5 metres for the Animas-Refugio vein.
The San Carlos mine is situated at the south end of a 2-km-long section of the vein, which is also the host to three other areas of historic underground workings on claims controlled by Capstone.
Capstone believes the initial drill results suggest that mineralization extends at depth. The ongoing drill program is slated to wrap up in November.
Capstone can take a 90% interest in Copala by spending US$1 million on exploration and development. The property is subject to a 1.5% net smelter return royalty.
The project is home to an historic measured and indicated resource of 719,220 tonnes running 1.9 grams gold and 246 grams silver per tonne. Another 1.7 million tonnes of inferred material grades 1.7 grams gold and 184 grams silver. The estimates do not comply with National Instrument 43-101.
Shares in Capstone were 11, or more than 10%, higher at $1.19 in mid-afternoon trading in Toronto following the news on Sept. 29.
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