Dartmouth, N.S.-based Gammon Lake Resources (GAM-T) has launched a 65,000-metre drill campaign on its Northeast Ocampo gold-silver project in Mexico.
The holes are aimed at expanding and upgrading the project’s resource, which was tabled earlier this summer. Underground measured and indicated resources total 3.5 million tonnes grading 5.9 grams gold and 302 grams silver per tonne. Another 4.5 million tonnes grading 6.1 grams gold and 298 grams silver are classified as inferred resources (T.N.M., June 16-22/03).
The underground estimate employs a cutoff grade of 3 grams gold-equivalent, a gold price of US$300 per oz., and a silver price of US$4.61 per oz.
Measured and indicated resources in the surface portion stand at 2.4 million tonnes of 1.32 grams gold and 55 grams silver. Some 1.1 million tonnes averaging 1.12 grams gold and 47 grams silver lie in the inferred category. The cutoff grade is 0.4 gram gold-equivalent.
Gammon plans to sink about 45,500 metres from underground drill stations spotted along the ramp currently being developed. The holes aim to expand resources in the Aventurero, San Juan, Rosario and Las Animas zones down-dip, and convert inferred resources to measured and indicated. The work will also aid in completion of a feasibility study.
The company plans to expand its 4.5-by-4-metre ramp to 6 km from the originally planned 2.5 km, and expects to intersect the Aventurero zone by September. The San Juan, Las Animas and Rosario zones should be reached by year-end.
The balance of the holes in the current program will focus mostly on untested near-surface targets such as La Fe, Belen, Altagracia, El Penol, Santa Ana and Olvidada.
In all, Gammon hopes to outline a total resource of about 6 million gold-equivalent ounces.
Shares in Gammon were trading 37, or 7.6% of value, higher at $5.25 in afternoon trade in Toronto on August 22.
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