The latest drill results from the Santa Gertrudis gold property in Sonora state, Mexico, have augmented minable reserves for owner Campbell Resources (CCH-T), while, at the same time, advancing nearby deposits.
The results are part of an ongoing $6-million program on the 194-sq.-km property. An additional $700,000 has been approved for the second half of the year, based on the drill results to date.
The Santa Gertrudis heap-leach mine consists of a series of open pits. The company expects to produce 54,000 oz. gold this year by mining 1.1 million tonnes of ore at an average grade of 2.2 grams per tonne.
Drilling at the Toro, Manueles Norte, Ruben, San Ignacio and Centauro deposits have intersected gold values ranging from 0.6 to 7.1 grams gold over several metres, with higher grades over narrower widths. The best results include 7.1 grams gold over 2.9 metres from San Ignacio, and 4.5 grams over 7.5 metres and 1 gram over 3 metres from Manueles Norte.
Initial exploration drilling cut anomalous gold values at the Manueles South, Manueles West and Amanda target areas. The best results were from hole 7 on Manueles West, where 5 grams gold over 1.3 metres were intersected.
North of the mine site, drilling at the newly discovered Las Truena zone intersected gold mineralization in two parallel zones over a 350-metre strike length. Highlights include 3.8 grams over 4.9 metres from hole 7 and 2.1 grams over 9.2 metres in hole 6.
The company has begun drilling an extensive alteration halo on the Greta target, southeast of the mine area, while a second drill is conducting follow-up drilling on the Centauro deposit, within the mine area.
Meanwhile, a final feasibility study is under way on the Cerro Quema gold project in Panama. Production is scheduled to begin by the fourth quarter of 1997 at an annual rate of 50,000 oz.
The company also announced that its warrants have begun trading on the New York Stock Exchange. Each warrant entitles the holder to buy one common share for US$1.50 on or before Feb. 26, 1999, with 9 million warrants issued and outstanding.
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