Vancouver–A new resource estimate for the San Agustin polymetallic property in Durango, Mexico, has doubled the project’s indicated resource and added 74% to its inferred count for owner Geologix Explorations (GIX-T, GXEXF-o).
San Agustin is now home to 122.2 million indicated tonnes grading 0.41 gram gold per tonne, 12.3 grams silver, 0.49% zinc and 0.06% lead. Inferred resources add 92.9 million tonnes grading 0.36 gram gold, 12.5 grams silver, 0.48% zinc and 0.07% lead.
Most of the resource is categorized as sulphide mineralization. Specifically, the sulphide portion of the resource currently sits at 100.4 million indicated tonnes and 81.1 million inferred tonnes. Metal grades are fairly consistent between the oxide and sulphide portions of the deposit, though the oxide zone carries a slightly higher level of silver.
Geologix optioned the property from Silver Standard Resources (SSO-T, SSRI-q) in 2006. The agreement required Geologix to pay Silver Standard a set amount for each ounce of gold and silver defined in a resource estimate based on its first 15,000 metres of drilling.
Geologix kept that first 15,000 metres of drilling confined to a small area. As such, its first resource estimate was not large — 60.8 million indicated tonnes grading 0.49 gram gold and 53.4 million inferred tonnes grading 0.42 gram gold — but more than half of the gold ounces were already in the indicated category.
Work since the option-agreement drilling has therefore focused on stepping out from the initial, small zone of focus, which is what enabled the company to post such a considerable increase to the San Agustin resource.
Mineralization at San Agustin is spread through a dacite complex. Disseminated gold and silver mineralization is hosted in a seritepyrite altered, locally brecciated, massive to flow-banded dome with some quartz veining.
Geologix graduated to the main board of the Toronto Stock Exchange in mid-October. The company recently traded at around 41 in a 52-week trading range of 36.5-$2.90, and has 51.3 million shares issued.
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