Minaurum Gold (MGG.V) has now (finally) released a first batch of drill results from its exploration campaign at the Alamos silver project in Mexico. The results of the first five holes are now in, and although this is just a limited amount of holes, the results are actually pretty exciting.
The intercepts at Promontorio are really good (especially considering these are the very first holes the company is drilling here), and especially hole 4 is intriguing as it intersected 20.15 meters of 694 g/t silver-equivalent, consisting of 154 g/t silver, 0.5% copper, 2.3% lead and 6.8% zinc. Not only is an interval of 20 meters impressive, the mix of base metals and silver makes this interval interesting from both a base metal and precious metals perspective.
Just to give you an idea of how important the lead and zinc could be; on a 100% recovery and payability basis, the lead and zinc alone represent a dollar value of $278/t. Even after taking recovery rates and payability percentages into account, it’s pretty clear the by-products could cover all operating expenses, resulting in a zero (or negative) cost basis for the silver. On top of that, a width of in excess of 20 meters (although we don’t know the true width of the intercept) at these grades is extraordinary, and will allow for the use of more efficient underground mining methods.
Elsewhere, Minaurum confirmed the piano key model after finding anomalous values of silver, copper and zinc over a short interval. No exciting grades there, but the simple proof of the existence of blind veins is an important step forward in the company’s exploration theory.
And finally, Minaurum also drilled one hole at its Minas Nuevas bulk target. Although the wide high-grade interval at Promontorio was the real eye-catcher, intersecting almost 18 meter containing in excess of 3 ounces of silver per tonne isn’t too bad either, as this definitely validates the potential of this bulk tonnage target.
As said, these are the results of just the first few holes drilled by Minaurum, and only 1,342 meters of the planned 5,000 meters have been drilled by now. The remaining part of the drill program will focus on discovering and outlining new/more blind vein targets, as well as following up on the other targets on the Alamos land package. Minaurum will remain pretty busy in the next few weeks and months, and should be able to release a steady stream of news.
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The author has a long position in Minaurum Gold. Minaurum is a sponsor of the website. Please read the disclaimer
