Oro Gold Resources (ORG-V, OGRSF-O) says that drill results from its Taunus resource expansion program in Sinaloa, Mexico, are prompting the company to expand its 2,000-metre program.
Assay highlights from the first two holes include an 11.55-metre intersection grading 2.19 grams gold per tonne on the northeast side of the abandoned Taunus pit and a 14-metre intersection grading 3.01 grams gold near surface on the south side of the pit.
“Given these results and the additional targets that we have identified in the immediate area, we are likely to increase the current two-thousand-metre drill program,” Oro Gold vice-president Frank Powel said in a statement.
An Oro spokesperson says the company is trying to get a second rig and will likely drill up to 5,000 metres in total at Taunus, which is located on Oro’s 65-sq.-km Trinidad property.
Oro also reported trench results, which included 48 metres grading 0.98 gram gold per tonne and 42 metres of 0.98 gram gold.
Last month, Oro reported an inferred resource at Taunus of 1.6 million tonnes grading 1.76 grams gold per tonne, or 91,915 oz. gold. The estimate used a cutoff grade of 0.5 gram gold per tonne.
Oro plans to put out another resource estimate by the end of the first quarter of 2008, which will include drilling done this year.
Oro shares rose 10% on the news to 83 on a trading volume of 19,000 shares.
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