MacMillan Gold finds silver and gold

MacMillan Gold (MMG-V) is finding that the Cerro de Oro gold and silver project in Zacatecas, Mexico is aptly named.

Nine reverse circulation holes were completed in the third phase of drilling completed in December and a further 27 holes, totaling 4,389 metres, have been drilled from February through until May. Significant gold and silver have been intersected.

The property is underlain by altered volcanic rocks of the Santa Rosa Dome Complex, near their contact with enclosing carbonate rocks.

Four holes were drilled in the southeast contact area. One hole returned grades of 1.14 grams gold per tonne and 44.5 grams silver per tonne over 3 metres. This hole also intersected 3% lead and 2% zinc over 1.5 metres. Similar grades of 1 to 3.1% lead and up to 2% zinc were found over 3-metre widths in several holes. One hole, abandoned due to poor drilling conditions, bottomed with 1.5 metres grading 24.3 grams silver per tonne; the last 6.1 metres graded 16.8 grams silver per tonne.

Two holes were drilled in the San Leonides target, 3 km west of the aforementioned area. Highlights of this drilling included 7.6 metres grading 0.5 grams gold per tonne and 29.3 grams silver per tonne. One hole was deepened, resulting in 94.5 metres grading 0.23 grams gold per tonne and 33.6 grams silver per tonne.

A magnetic survey, completed in December and an induced polarization survey in January aided in identifying targets for further drillholes. The geophysics program was conducted by Zonge Engineering and Research of Tucson. Subsequent to the geophysics, 7 holes were drilled in the San Leonides target; highlights from this drilling include: 9.1 metres of 0.37 grams gold per tonne, 39 grams silver per tonne, 1.41% lead and 0.80% zinc; and 4.6 metres grading 0.14 grams gold per tonne and 122 grams silver per tonne.

One drillhole failed to explain a magnetic anomaly. Another drilled at the southwest contact between the Santa Rosa Dome Complex and the enclosing carbonate rocks intersected 13.7 metres grading 1.41 grams gold per tonne, 14.0 grams silver per tonne and 0.17 % zinc.

Results from 18 holes have yet to be received. Drillhole samples were collected from each 1.52-metre interval downhole. Analytical firms, BIS Inspectorate Laboratories of Sparks, Nevada and ALS Chemex of Vancouver, collected samples on-site and completed sample preparation at their respective Mexican facilities. Diamond drilling is planned for this summer.