Early drilling positive at El Aguila

Initial drilling by Canyon Resources (CAU-X) at the El Aguila property in Oaxaca state, Mexico, has encountered near-surface gold and silver mineralization.

Canyon, earning a 50% interest in the property from Gold Resource Corporation — in turn, an affiliate of U.S. Gold (USGL-O) — drilled 31 vertical reverse-circulation holes over a surface showing of gold mineralization. Eleven of those holes returned significant gold values.

The showing consists of a number of massive quartz bodies in a silicified rhyolite unit. The recent drilling indicates a sub-horizontal manto type body from 4 to 24 metres in vertical thickness.

Four holes returned high gold grades, including intervals of 12 metres grading 10.1 grams gold and 86 grams silver per tonne, 14 metres grading 8 grams gold and 64 grams silver per tonne, 24 metres grading 4.9 grams gold and 20 grams silver per tonne, and 4 metres grading 14.6 grams gold and 74 grams silver.

The remaining holes had gold grades ranging from 1.5 to 3.8 grams per tonne over intervals of 4 to 20 metres.