Gammon sees underground potential in new drill results

Further drilling by Gammon Lake Resources (GAM-T) has returned high gold and silver grades at the Ocampo project in Chihuahua state, Mexico.

The company says this indicates potential for a deposit of sufficient grades to justify underground mining.

A new drill hole on the Brenda area (a formerly producing mine) returned a 3-metre length grading 10.88 grams gold and 633 grams silver per tonne.

A second hole on Brenda cut an 8-metre interval grading 1.6 grams gold and 54 grams silver and a separate 27-metre length that ran 1.16 grams gold and 64 grams silver. Both intervals were heavily influenced by narrower 3-metre intervals grading 3.49 grams gold and 102 grams silver and 4.67 grams gold and 267 grams silver, respectively.

Results were released last winter from the San Jose y San Juan area, southwest of Brenda, and the Aventurero area to the south. They also showed gold grades of between 5 grams and 25 grams and silver grades of hundreds of grams per tonne over intervals ranging from 1 metre to 10 metres.

The company thinks the presence of higher-grade mineralization at Brenda will improve the economic picture at Ocampo, which is the subject of a prefeasibility study. Recent metallurgical tests indicated good recoveries from column leaching, indicating that the proposed open-pit and heap-leach development may be economic.

The most recent resource estimate from Ocampo shows a measured and indicated resource of 21.7 million tonnes grading 1.44 grams gold and 57 grams silver per tonne, plus inferred resources of 5.8 million tonnes at 1.7 grams gold and 86 grams silver per tonne.