MacMillan Gold tests Cerro de Oro

The last batch of six holes from a recently completed 4,400-metre reverse-circulation (RC) drilling campaign on the Cerro de Oro silver-gold project in Zacatecas state, Mexico, continues to yield encouraging results for owner MacMillan Gold (MMG-V).

The final six holes are highlighted by hole no. 54, which cut 41.1 metres (from surface) grading 120 grams silver and 1.4 grams gold per tonne plus 1.7% lead and 1.6% zinc. The first 10.7 metres from surface average 276 grams silver, 2 grams gold, 3.8% lead and 1.5% zinc.

The hole was among three to test the Maderito target discovered in May. Hole no. 52 cut 9.1 metres of less than a gram each of silver and gold; no. 53 failed to cut any significant mineralization.

The discovery hole at Maderito, no. 29, was designed to test the southwest contact between the altered volcanic rocks of the Santa Rosa Dome complex and the surrounding carbonate rocks. It yielded 30.5 metres of 13.6 grams silver and 0.8 gram gold, including 13.7 metres at 14 grams silver, 1.4 grams gold, and 0.2% zinc. The hole also cut a lower 1.5-metre section running 23.3 grams silver, 0.9 grams gold, and 8.1% zinc. Previous surface trenching cut up to 18 metres averaging 87 grams silver and 1.8 grams gold.

MacMillan plans follow-up drilling to determine whether a significant resource exists at Maderito.

Results are also in for two holes sunk on the San Leonides target in the centre of the Cerro de Oro valley. Hole no. 50 cut 9.1 metres (from 42.7 metres below surface) of 11 grams silver and 0.4 gram gold, including 1.5 metres of 33.7 grams silver and 1.4 gram gold. Hole 51 intersected 41.1 metres (from 65.5 m) running 28 grams silver and 0.2 gram gold, including 4.6 metres (from 70.1 m) of 102 grams silver.

Previous highlights from drilling at San Leonides include 7.6 metres grading 42.6 grams silver, 0.2 gram gold, and 0.53% lead, including 3 metres of 93.9 grams silver, 0.52 gram gold and 1.27% lead.

MacMillan says the holes continue to indicate the potential for a large, disseminated gold and silver deposit at San Leonides.

Meanwhile, the company plans to follow up on hole no. 23, which cut 3.6 metres grading 9.2 grams silver and of 0.3 gram gold on the South Contact target. Further drilling will test the target at greater depths. Additional drilling will test several other targets on the property; the company plans some diamond drilling to provide structural, grade and metallurgical information, especially in the contact zone targets.