Good grades, good widths, for Medoro in Colombia

Exploration and infill drilling that began in January have turned up the longest intersection widths to date at the Marmato project in Colombia, Medoro Resources (MRS-V) reports.

The drill holes are part of a 90,000-metre drill program scheduled to finish in mid-2011 at the project, which covers 1,198 hectares in the mid-Cauca gold belt in the Western Cordillera, 120 km south of Medellín in Caldas state.

Highlights from surface drilling in the Zona Alta and Echandia areas include hole 1214-A of 180 metres grading 1.04 grams gold per tonne and 4 grams silver per tonne, and 98.45 metres of 1.22 grams gold and 5.3 grams silver in hole 1239-A. The cut-off grade used was 0.3 gram gold per tonne.

Hole 1247 returned 113.45 metres of 0.79 grams gold and 3.6 grams silver, while hole 1248 cut 96.08 metres of 1.31 grams gold and 8.6 grams silver. Finally hole 1249 yielded 201.63 metres of 0.82 grams gold and 8.7 grams silver.

So far about 80 drill holes have been completed for a total of 30,037.93 metres, revealing that the gold zone is open to the southeast and northwest and to depth.

Ten drill rigs are operating from surface and one from underground. Another three underground drill rigs are to arrive in August, which will bring the total number of rigs to 14.

The Marmato project is one gold deposit made up of three contiguous license areas of Zona Alta, Echandia and Zona Baja, which cover 1,198 hectares in Caldas, Colombia.

At a cut-off grade of 0.3 gram gold per tonne, measured and indicated resources stand at about 245 million tonnes grading an average of 0.95 gram gold per tonne, for 7.5 million oz. of contained gold. Inferred resources add 76 million tonnes at an average grade of 0.92 gram gold for about 2.2 million oz. gold.

Medoro acquired Marmato in three stages. In October 2009, Medoro acquired the Zona Alta license through its share purchase of Colombia Goldfields. Then in early February 2010, Medoro acquired the Echandia and La Maria licenses through its share purchase of Colombia Gold and, in late February 2010, the Zona Baja license through its cash purchase of Mineros Nacionales S.A., a private Colombian company.

As part of the acquisition of Mineros Nacionales, Medoro took over the Mineros Nacionales’ underground gold mineat Zona Baja, which produces about 25,000 oz. gold per year.

In addition Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela, where it is trying to nail down an exploitation permit. Medoro also owns interests in gold exploration properties in Mali.

At presstime Medoro was trading at 57¢ per share and has traded in a range of 43¢-94¢ per share.