Northern Crown hits Zapote gold

An 85-ft. intersection grading 0.10 oz. gold per ton is reported from the Guadalupe property in western Mexico.

It is the first hole reported in a 13-hole reverse circulation program on the property, situated north of the seaport of Mazatlan in Sinaloa state. Owner Northern Crown Mines (VSE) says the intersection is about 150 ft. downdip from Hole 93-Z-7 which intersected 90 ft. grading 0.11 oz. The two holes are on a wide quartz stockwork known as the Zapote zone, the most easterly section drilled to date.

Previous estimates put the drill-inferred resource in Zapote at 1.9 million tons grading 0.08 oz. based on drilling and sampling along about 820 ft. of strike, an average thickness of 75 ft. and a depth extent of 375 ft. Northern Crown is awaiting results from the remaining 12 holes before proceeding with a further 17-22 holes. Future work will consist of infill and stepout drilling in an attempt to confirm and expand reserves. President John Brock said the current 30-35-hole program is budgeted at $350,000 and that the company will likely spend upwards of $1.5 million on the property this year. Drilling is also planned for other prospective zones on the property.

Northern Crown has 6.1 million shares outstanding and $600,000 in working capital. The company will likely raise additional funds in the first quarter, Brock said.