Oro gets little applause for latest results

As Oro Gold Resources (OGR-V) continues to push on its flagship property, Trinidad in Sinaloa Mexico, the company lost some market support.

Despite announcing that it has extended the HS zone, overall, results from Taunus South, Bocas Shallow, and the new Eldorado South zones, failed to inspire a market rally.

Highlights from the latest assays include:

• Hole 27 — 19 metres grading 5.2 grams gold (extended high-grade gold mineralization of the HS Zone 25 metres to the southwest).
• Hole 32 — 9 metres grading 3grams gold and 32 metres grading 1.1 grams gold (drilled in the Taunus South zone at  thesouthern end of the Taunus pit).
• Hole 33 — 7 metres grading 2.2 grams gold over and 38.7 metres grading 0.5 grams gold (discovered the new Eldorado South zone located 170 metres south of the Taunus pit).

While those results may seem impressive enough, the market was likely expecting more given past holes that returned such stand-out intercepts as 61.1 metres grading 8.5 grams gold and 23.6 metres grading 5.29 grams gold.

Midday in Toronto on Dec. 10 the company’s shares were off 11% or 6¢ to 48¢ on 625,000 shares traded.

But Vancouver-based Oro was finding positives even when the drill returned no gold.

It says hole 34, which was drilled below the HS Zone, didn’t hit gold but did intersect 34 metres of pyritic altered volcanic rock at a vertical depth of 300 metres. Oro says the presence of the altered unit offers the potential of a yet to be discovered mineralized zone at depth.

“Geologic results from hole 34 indicate good potential at depth and the shallow assay results from the new Eldorado South area over 170 metres south of the Taunus pit indicate excellent potential to make new discoveries in this area as well as add ounces to our gold resource base,” Oro’s vice president Frank Powell said in a statement.

The company currently has three drill rigs turning at the site.

With the year winding down, Oro laid out its plans for the upcoming year.

It says it will seek to expand the size of the HS zone; identify overall size and connectivity to the Bocas, Taunus South, and Eldorado South zones and test for new gold zones at depth beneath the HS zone.

The company is also targeting a resource estimate for Trinidad in the first half of 2010.
Trinidad encompasses an 80 km-long, northwest-trending structural corridor.

Thus far, the only compliant resource the company has is at Taunus where it has an inferred resource of 4,491,800 tonnes grading 1.39 grams gold for 200,930 ounces.

While Oro has a total of 11 projects in Mexico and Panama, Trinidad is its main focus.
The company has drilled 7,800 metres in 33 diamond drill holes and has identified five mineralized zones: HS, El Dorado, Bocas, Taunus South and El Tanque.