Glamis cuts high grade at La Hamaca

Reverse-circulation drilling on the La Hamaca prospect in Guatemala has returned some impressive gold grades for owner Glamis Gold (GLG-T).

Selected results form the first ten holes on the target include:

• Hole 1 5.2 metres of true width (beginning 141 metres below surface) grading 23.3 grams gold and 735 grams silver per tonne;
• Hole 2 0.9 metre (from 178.5 m) running 8 grams gold and 213 grams silver;
• Hole 4 2.6 metres (from 130.5 m) of 31.3 grams gold and 1,240 grams silver; and
• Hole 9 3.2 metres (from 99 m) averaging 13.8 grams gold and 373 grams silver.

The holes cut mineralization similar in grade and character to that in the veins at the Marlin project about 3 km to the south. Initial metallurgical testing suggests the ore is amenable to conventional processing. Further test work is planned.

The drilling targeted a steep, east-west trending quartz-calcite vein hosted by altered andesite. Drilling and outcrop sampling has outlined the vein along 280 metres of strike, within an 800-metre-long gold-in-soil anomaly.

Glamis plans another 7 reverse-circulation holes to test the vein to the east, west and at depth. Core drilling is also planned. Drilling will also target several parallel structures about 200 metres to the south.

La Hamaca is situated about 3 km north of Glamis’ Marlin project. It is the northern-most of five targets within a 6 km radius of Marlin.

For the balance of the year, Glamis plans to focus its activities on the other targets near Marlin. The targets’ geology, alteration and geochemical signatures are similar to those at La Hamaca.

Measured and indicated resources at Marlin total 53.9 million tonnes grading 1.7 gram gold and 24.4 grams silver per tonne. Glamis will develop the project as a combined open-pit and underground min, with annual production of 217,000 oz of gold and 3.3 million oz of silver over 10 years. The price tag weighs in at US$120.3 million. First production is slated for early 2006.

Glamis says it will look in to how the La Hamaca discovery will affect development plans at Marlin.