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Results from two holes stand out: one cut 8.9 metres grading 71 grams gold and 3,728 grams silver per tonne, whereas the other returned 12 metres of 19 grams gold and 1,395 grams silver.
These holes both cut the northwest-striking La Blanca quartz vein breccia. High grades were also cut in the west-northwest-striking La Prieta zone. Both zones dip southwest. Stockwork mineralization is found at the intersection of the two structures.
Other high-grade La Blanca intersections cut by reverse-circulation holes include: 9 metres grading 3.6 grams gold and 873 grams silver; 10.6 metres grading 3.1 grams gold and 436 grams silver; and 7.6 metres grading 4 grams gold and 403 grams silver.
Drilling at La Prieta is highlighted by RC holes that cut 6 metres grading 3.8 grams gold and 468 grams silver from surface in the footwall stockwork. Another RC hole cut the hangingwall stockwork, intersecting 9 metres grading 3.6 grams gold and 504 grams silver at 93 metres down-hole.
Delineation drilling is firming up an inferred resource containing 21 million tonnes grading 1.75 grams gold and 191 grams silver. The estimate was calculated last year using a cutoff grade of 1 gram gold-equivalent (65 grams silver were estimated to be equivalent to 1 gram gold) and gold and silver prices of US$375 and US$5.77 per oz., respectively.
The company is drilling the Rosario clavo (high-grade shoot) at 20-metre centres to firm up a resource capable of sustaining the first two years of an open-pit operation. Two RC holes recently returned 7.6 metres grading 5.3 grams gold and 444 grams silver at 151 metres down-hole, plus 12 metres grading 4.5 grams gold and 459 grams silver at 128 metres down-hole.
Drilling is attempting to define the known high-grade shoots to the status of indicated resource. Three RC rigs and three diamond drill rigs have been turning.
Meanwhile, two drills have been relocated to test the Guadalupe zone, 7 km to the south. Assays are pending for a number of holes.
Geotechnical work has begun, metallurgical tests are ongoing, and design work for a processing facility will begin shortly. Also, preliminary documents required for the environmental permitting application have been completed, and community consultation and negotiations are under way.
Shares in Palmarejo climbed 12% on June 15 to close at $2.02 following the release of drill assay data.
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