New zone at Penasquito

Vancouver — Western Silver (WTC-T), formerly Western Copper, has discovered a new polymetallic zone on its wholly owned Penasquito property in Zacatecas state, Mexico.

The zone, known as La Palma, is 1.5 km north of the Chile Colorado deposit. Western Silver reports that the discovery hole, no. 63, yielded six metres grading 20 grams gold and 485 grams silver per tonne, plus 4.53% lead, 7.13% zinc and 0.34% copper, at a down-hole depth of 276 metres, and that this occurred within a broader, 38-metre interval averaging 3.71 grams gold, 99 grams silver, 1.16% lead and 2.15% zinc. The hole, which was part of a 13-hole, 5,462-metre program drilled in February and March, was collared on a crescent-shaped gravity geophysical high that extends 500 metres to the west, toward the Outcrop breccia, and 500 metres to the south.

Moving back to areas of proven mineralization, three holes tested the Northeastern zone of the Azul Breccia, with hole 65 intersecting 501 metres grading 0.29 gram gold, 45 grams silver, 0.72% lead and 1.68% zinc. The mineralized zone has been defined by drilling over an area measuring 500 by 100 by 300 metres.

Holes 61 and 62 were drilled along the southern border of the Outcrop breccia. Both holes intersected narrow zones of mineralization, with the latter hole cutting a 2-metre interval of 3.36 grams gold, 871 grams silver, 2.31% lead and 2.65% zinc.

Targeting the southeast and northwest extensions of the Chile Colorado zone, hole 58 cut 2 metres grading 0.85 gram gold, 537 grams silver, 5.14% lead and 4.16% zinc, while hole 55 hit 279 metres averaging 0.44 gram gold, 31 grams silver, 0.19% lead and 1.32% zinc.

Testing the zone at depth, hole 26 was deepened to 1,002 metres from 404 metres. Collared in the south-central portion of the deposit, a 30-metre section ran 1.81 grams gold, 58 grams silver, 0.32% lead and 2.83% zinc at a down-hole depth of 404 metres.

A new calculation tabled earlier this year gave the Chile Colorado zone an indicated resource of 118 million tonnes grading 0.36 gram gold, 41.9 grams silver, 0.38% lead and 0.89% zinc. An additional 58.6 million tonnes grading 0.31 gram gold, 28.98 grams silver, 0.24% lead and 0.69% zinc are classified as inferred.

The zone remains open to the southwest and northwest.

Covering 32.5 sq. km in the historical Concepcion del Oro district, Penasquito hosts a 9-sq.-km mineralizing system, about 30 metres below alluvial cover. Modern exploration over the prospective ground began in 1994, when Kennecott, a subsidiary of mining giant Rio Tinto (RTP-N), carried out several geochemical and geophysical surveys, followed by 71 drill holes. This work led to the discovery of polymetallic mineralization rich in silver, two large breccia pipes, and numerous, as-yet-untested anomalies.

In 1998, Western Silver acquired the property as part of a deal that included eight projects scattered throughout Zacatecas, San Luis Potosi and Guanajuato states. The Dale Corman-led junior subsequently drilled nine holes on the property before dealing it to Peru-based Mauricio Hochschild & Cia in August 2000.

Western subsequently reacquired its 100% stake in the project after Hochschild dropped its option to earn a 68% interest. Hochschild spent more than US$1 million on exploration, mostly at the Chile Colorado prospect, where 11 core holes were drilled.