Corex rises high on Santana results from Mexico

Corex Gold (CGE-V) released its second stellar intercept in just over one week from its Santana gold project in Mexico’s Sonora state and furthered its market momentum in the process.

The latest hole assayed a highlight intercept of 87 metres of 1.04 grams gold, with a higher-grade intercept of 28.6 metres grading 2.16 grams gold.

News of the assay had the company’s shares up another 11% on Nov. 25 to 93¢ on 545,000 shares traded. The results come just seven days after it announced assays of 89.2 metres grading 1.16 grams gold from the project.

Corex’s share price was sitting at around 55¢ apiece before the latest drill results from Santana were released on Nov. 17.

Both holes come from what the company calls the Nicho zone and taken together, the company says, the two holes confirm a high-grade portion of a mineralized zone which is structurally controlled and at least 200 metres long and 50 metres wide.

It hypothesizes that a lower-grade mineralized zone surrounds the higher grade area and is defined by tectonic breccias.

Vancouver-based Corex says mineralization at the site is controlled within a gold-bearing structural corridor that is open in all directions and at depth. It believes the zone widens at depth surrounding the higher-grade core.

Drilling is ongoing at Nicho with an eye towards expanding the resource potential of the zone.

“Findings from these most recent drill results confirm the Nicho North target is open downdip and along strike to the northwest and southeast, and the gold mineralization is associated with a brecciated structural zone, associated with quartz and pyrite stockwork,” the company said in a statement.

A follow up drill program is planned in the early part of 2011 to extend this target area and build out the significant potential of the Nicho North zone.

The Santana project is about 50 km southeast of Alamos Gold’s (AGI-T) Mulatos mine which has reserves of 61.5 million tonnes grading 1.21 grams gold for a total of 2.4 million oz.

The company’s drilling in 2008-09 identified an 800- metre wide by 2.3-km long mineralized corridor of gold-bearing oxide material that it believes will be amenable to open-pit mining.