Monarch calculates Mexican gold-silver resource

Preliminary resource figures are adding momentum to the Saladillo gold-silver concession in Durango, Mexico.

Monarch Resources (MRE-T) estimates the San Sebastian prospect contains 1.6 million tonnes grading 2.98 grams gold and 238 grams silver per tonne (equivalent to 156,000 contained ounces gold and 12.5 million contained ounces silver).

The figure is based on 51 holes drilled over 7,200 metres to a depth of 75 metres on the Francine zone.

The Francine vein, with a mineralized strike length of 1,500 metres, is one of four parallel veins on the prospect.

The resource covers only 900 metres of the strike length, and mineralization is open to the west and at depth.

The company will continue to evaluate the open-pit potential of the Francine vein with additional infill drilling, metallurgical testing and engineering studies. The company hopes to commission a feasibility study by year-end.

Deeper drilling on the vein is also planned. Limited deeper drilling to date has been confined to the eastern flank of the structure, but the company hopes to test shallow mineralization in the western flank.

Evidence of this shallow mineralization was provided by an intersection with a true width of 4.1 metres grading 527 grams silver and 3.1 grams gold from hole 34, and 4.1 metres grading 357 grams silver and 13.4 grams gold from 43.

Hole 46 encountered 9.2 metres grading and 340 grams silver and 2.8 grams gold.

Monarch will continue to evaluate the potential of the three other vein structures. To date, trenching has been completed on the North and Middle veins.

The company controls 60,000 ha in five concessions northeast of Durango, where additional mineralized structures have been identified near the surface.