Campbell Res. hits gold in Sonora

Reverse-circulation drilling has intersected gold mineralization at two prospects at the Santa Gertrudis property in Mexico’s Sonora state, as Campbell Resources (CCH-T) continues its effort to build reserves outside the property’s main mining area.

On the Greta prospect, 7 km southeast of the main open-pit operations, four drill holes tested the Ontario zone, a gold occurrence in a shallow-dipping silty limestone. One inclined hole, No. 306, intersected a 21.3-metre interval with a true width of 10.3 metres, grading 7.4 grams gold per tonne.

Three vertical holes drilled to follow up on that result graded 4.7 grams gold over 18 metres, 9.6 grams over 4.5 metres and 2.9 grams over 1.5 metres.

The company plans to drill five more holes to test the zone laterally. The zone is about 200 metres south of another occurrence drilled in late summer, where three holes intersected similar gold values.

Drilling at a prospect north of the mining area, called La Truena, is testing two shear zones in silty limestone. Intersections include 2.6 grams gold over 19.5 metres, 1.8 grams over 16.5 metres, 4.2 grams over 6 metres and 12.8 grams over 3 metres.

Five more holes are being drilled on the structures, which are open to the west.

Campbell earned $1.5 million (or 1 cents per share), on revenue of $16.2 million for the third quarter. For the first nine months of the year, Campbell earned $8.16 million (5.6 cents per share) on $53.3 million, up from $6.8 million (5.7 cents per share) on $49.1 million in the corresponding period in 1995.

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