BASE METALS SPECIAL — Three drills testing Campo Morado

A drill program employing three rigs is testing a massive sulphide target at the Campo Morado project in Mexico’s Guerrro state.

Owner Farallon Resources (FAR-T) says the 543-sq.-km property hosts more than 16 known precious-metals-rich massive sulphide showings and deposits.

The Reforma gold-silver massive sulphide deposit has received the most work, and contains extensive underground workings directed towards exploiting the oxide cap overlying the primary massive sulphide deposit.

The deposit strikes north-northwest, dips moderately to the southwest and is oxidized to a depth of about 50-60 metres below outcrop. Up to 60 metres thick, the stratiform deposit has been traced in underground workings for 1 km and is still open to depth and to the northwest. (Its extent to the southeast is unknown.)

Farallon increased its holding in the region by acquiring the 2,025-sq.-km Don Pedro concession. Once this concession is formally granted, Farallon will control 2,580 sq. km covering a 60-km strike length of the

precious-metals-rich belt.

Don Pedro was acquired to cover favorable extensions of the Telolopan Subterrane rocks from Campo Morado north to the Mamatla property held by Valerie Gold Resources (VLG-V).

Valerie is drilling at Mamatla. The first hole intersected 28.7 metres grading 2% zinc, 0.85% lead and 0.2% copper, as well 0.81 gram gold and 494 grams silver per tonne. TVX Gold (TVX-T) recently subscribed for 750,000 units of Valerie and is helping manage exploration work.

Previous work at Mamatla by a government corporation outlined a potential reserve of 5.2 million tonnes grading 0.4 gram gold and 445 grams silver per tonne, plus 5.9% lead and 17.3% zinc.