Vancouver – Looking to recharge its treasury for exploration and development of its Mexican operations, Genco Resources (GGC-V, GGCRF-O) has lined up a $25-million brokered private placement.
The company has engaged Haywood Securities and Salman Partners to sell up to 6.25 million units at $4.00 apiece. Units will consist of a common share plus a half-warrant with each full warrant exercisable at $5.25 for two years.
Recent drilling on its La Guitarra mine project in central Mexicos Temascaltepec Mining District returned an exceptionally high-grade gold and silver interval. Hole GDH-109 on the San Rafael-La Guitarra target cut 9.5 metres (from 353.5 metres downhole depth) of 10.9 grams gold per tonne and 574 grams silver per tonne including 3.3 metres running 31.2 grams gold and 1,478 grams silver.
Underground mining on the project has targeted the high-grade epithermal ore shoots hosted in the La Guitarra shear zone.
In mid-May, Genco tabled revised reserve and resource estimate for its La Guitarra mine. Proven and probable reserves stand at 528,700 tonnes grading 307 grams silver and 1.55 grams gold. Meanwhile the measured and indicated resource is tabled at 1.26 million tonnes of 70 grams silver and 0.68 gram gold plus an additional 19.8 million inferred tonnes at 156 grams silver and 1.38 grams gold.
At the current rated mill capacity of 340-tonnes-per-day, the proven and probable reserves are sufficient 4.4-years of mine life.
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