Drilling by Echo Bay Mines (TSE) at the Paredones Amarillos gold project in Mexico continues to test the main resource area, where partner Baja Gold (TSE) has estimated reserves of 1.5 million contained ounces.
The deposit, situated in Baja California Sur, was previously estimated to host 8.1 million tonnes grading 1.75 grams gold per tonne, with contained ounces projected at 454,000.
Under an option agreement, Echo Bay can earn a 60% interest by spending US$6.5 million on exploration and paying US$1 million to Baja. Echo Bay expects to fulfil these requirements shortly.
The partners have budgeted an additional US$1 million for the 1995 program, which will cover further drilling in the main deposit and to the east, where geophysical and geochemical work has outlined a potential target.
The latest drill results from the main resource area are as follows: HoleIntervalWidthGold
(m)(m)(g/t)
114R3.0-15.012.01.09
19.5-45.025.51.34
120C 234.0-243.09.01.88
124R145.5-151.56.0 3.02
130C268.5-295.527.01.59
134C231.0-262.031.02.73
incl235.0-252.017.03.86
143R21.0-72.051.01.79
144R45.0-69.024.02.86
76.5-82.56.0 7.41
145R184.5-202.518.0 1.39
C-Core hole
R-Rotary hole
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