Promontorio takes shape under Sierra Nevada

Drill results are enabling Sierra Nevada Gold (VSE) to prove up the Promontorio property in Mexico’s Chihuahua state.

The California-based company has completed eight core drill holes, testing previous work by Empressa Minera Can Mex, a Mexican subsidiary of Placer Dome. At least 20 holes will be drilled in an attempt to confirm Can Mex’s potential resource estimate of 3 million tons containing 350,000 oz. gold and 200 million lb. copper. The estimate is based on results from 34 reverse-circulation holes drilled in 1993 and 1994.

Sierra Nevada is testing the Veta Grande zone, which is estimated to contain 1.7 million tons averaging 0.12 oz. gold per ton and 6% copper. The latest results are from hole 96-2, which intersected 54 ft. grading 0.07 oz. gold, 2.85 oz. silver and 5.22% copper, including an interval grading 0.15 oz. gold, 6.21 oz. silver and 11.69% copper over 20 ft. This hole was a 50-ft. stepout to the south of previously reported holes 96-1 and 95-3.

Hole 95-3 intersected 82 ft. grading 0.18 oz. gold, 3.07 oz. silver and 7.33% copper, including 37 ft. of 0.34 oz. gold, 5.14 oz. silver and 12.27% copper. It was drilled as a twin to Can Mex hole P-27, which cut 64.9 ft. grading 0.12 oz. gold and 7.74% copper.

Hole 96-1 was steepened and drilled downdip of hole 95-3. It intersected 55 ft. grading 0.1 oz. gold, 3.88 oz. silver and 7.98% copper, including 25 ft. of 0.12 oz. gold, 6.66 oz. silver and 15.01% copper.

A fourth hole has since been completed north of holes 96-1 and 95-3, and results are pending.

Sierra Nevada can acquire the Promontorio property by making staged buyout payments totalling US$5 million over 10 years.