Sierra Nevada returns strong values

Drilling on the Promontorio property in Mexico’s Chihuahua state is returning encouraging values for Sierra Nevada Gold (VSE).

The third hole, drilled on the Veta Grande zone, returned an 82-ft. intersection grading 0.18 oz. gold and 3.07 oz. silver per ton, as well as 7.33% copper, 0.86% lead and 2.2% zinc. The hole included a 37-ft. interval grading 0.34 oz. gold, 5.1 oz. silver, 12.37% copper, 1.46% lead and 2.49% zinc.

The first two holes were drilled on the nearby Mina Vieja zone, returning: 140 ft. grading 0.058 oz. gold, 0.68 oz. silver and 0.46% copper in hole P95-01; and 60 ft. grading 0.15 oz. gold, 1.48 oz. silver and 1.2% copper in hole P95-02.

The Mina Vieja and Veta Grande zones, in addition to being intensely silicified, are related to two major fault systems that are believed to have acted as conduits for mineralizing solutions.

Historic work on the property includes small-scale mining dating back to the turn of the century.

Placer Dome explored the property in 1993 and 1994, drilling 34 reverse-circulation holes. The drilling returned values similar to those that resulted from Sierra Nevada’s recent work, but Placer opted to drop the property, reporting that potential reserves were not satisfactory.

Sierra Nevada’s current program of diamond drilling will include 20 holes, predominantly infilling around Placer’s work to flesh out a resource.

Mark Lee, chairman of Sierra Nevada, hopes to follow up the current program with underground development and drilling to define a reserve for a moderate-sized underground mine.

Sierra Nevada has just over 11 million shares outstanding and roughly $600,000 in working capital, which, Lee says, should be sufficient to complete this stage of drilling.