Oro Gold hits high-grade gold in resource gap

VANCOUVER — A high-grade gold hit has connected two separate zones at Oro Gold Resources’ (OGR-V) Trinidad property in Sinaloa, Mexico.

The HS and Taunus South zones had been modeled separately to date because of a 100-metre gap. Now drill hole 41 has pulled some gold-laden rock from the middle of that gap.

Hole 41 cut 40.9 metres grading 11.9 grams gold per tonne, starting 202 metres downhole. The intercept includes a 4-metre segment that shows fine, visible gold; two samples from the high-grade segment returned grades of 89.6 grams gold and 104.6 grams gold. The core showed hydrothermal breccia from a low-angle, horizontally controlled unit. With this intercept Oro Gold has traced the breccia for 500 metres, from the HS zone through Taunus South.

Above the high-grade breccia interval, hole 41 also returned a 34- metre hit averaging 0.4 gram gold.

“This hole, with these kinds of results, could not be situated in a better place,” said Frank Powell, Oro Gold’s VP of exploration. “Not only does it fill in a big hole in the middle of our model with good grade, it also shows continuity over a considerable distance.”

Another recent hole at Trinidad probed the HS zone at depth and also returned promising results. Hole 34A intersected 34.5 metres grading 8.7 grams gold from 132 metres depth, making it the deepest intercept in the zone.

Oro Gold is working through a 10,000-metre drill program at Trinidad aimed at discovering new zones in the Taunus area, expanding known zones, drilling deep holes to find the high-grade source of mineralization, and probing several new targets on the property. Following several land acquisitions, the Trinidad property now exceeds 2,500 sq. km.

In 2009, the company pulled numerous high-grade cores from the ground at Trinidad. Some of the best intercepts included 5.3 grams gold over 65.9 metres, 3.6 grams gold over 81.8 metres, and 8.6 grams gold over 21 metres.

Last year, Oro Gold spent $2.5 million at Trinidad. For the first half of this year the company has budgeted $3 million for the project. Key goals include: to update the resource in the Taunus-Eldorado historic open-pit area using results from the current program, and complete an inhouse scoping study on the resource.

The Trinidad project is part of an 80-km-long, northwest-trending structural corridor. The Taunus deposit is hosted in a pull-apart basin within the corridor that contains oxidized, low-to-intermediate sulphidation epithermal gold mineralization.

Oro Gold’s share price gained 2¢ on news of the gold hit in hole 41 to reach 56¢. The company has a 52- week trading range of 13¢-$1.05 and 63 million shares outstanding.