Torex Gold Resources Inc. plans to significantly increase the exploration program at its 100% owned Morelos Gold Project in Mexico.
Torex currently has five drill rigs operating on the property and plans to increase that number to a total of eleven drill rigs by early in 2011.
The total meterage for the Company’s initial drill program on the Morelos property will increase from the planned 56,500 meters to a total of 100,000 meters of drilling to be completed by the end of June of 2011.
The Company also reported today that initial assay results from its infill and extension drilling programs at El Limon and Los Guajes West intersected gold mineralization that is consistent with the existing geological interpretations and the existing resource estimates and also suggests a potential to expand the resource in both areas. Initial drilling at the new Los Mangos target, located some 500 metres northwest of the Los Guajes West skarn-related Au resource (Figure 1), encountered significant intervals (up to 200m) of pervasive gold mineralization; typically in the 0.2 g/t to 0.5 g/t range but with some intervals of higher grades (e.g., T10-008C – 170-182m; 12m @ 1.358g/t Au; T10-008C – 386-395.3m; 9.3m @ 1.312g/t Au). The gold mineralization occurs within hypogene argillic alteration with quartz-sulfide veining and local silicification indicating the possible presence of a porphyry-related center of alteration and mineralization.
Very preliminary drilling (assays received for only two holes to date) south of the Balsas River encountered gold mineralization in skarn-related altered rocks with the best intercept (T10-011C – 352.4 to 363.8m; 11.4m @ 1.374g/t Au and 26.3g/t Ag) occurring with silicification and carbonate replacement of the Morelos Formation.
“We are very encouraged by the initial drill results at all four of the target areas tested to date. The definition and step out drilling at both El Limon and Guajes West intersected gold mineralization similar to that intersected in previous drilling. The ongoing definition and step out drilling is necessary to complete resource estimates required to finish our ongoing pre-feasibility study,” said Fred Stanford, President & CEO of Torex. “It is still early days, but drilling at both Los Mangos and south of the Balsas River is positive with typical skarn mineralization intersected south of the Balsas River and new porphyry type mineralization and alteration intersected at Los Mangos. The Company plans to double the number of drill rigs operating on the property over the next few months to enable the upgrading of the current resources and the addition of new ounces of gold,” he added.
Initial Drilling Results
To date, the Company has drilled a total of 15,427m during the initial phase of its 2010 drilling program. This total meterage includes 13,481m (47 drill holes completed and three in progress) in and around the known El Limon and Los Guajes resource area (Figure 1) and 1,946m (three drill holes completed and two in progress) in its exploration program in the El Naranjo area south of the Balsas River (Figure 2). The drilling program and significant assay results received to date are summarized in Tables 1 below and Table 2 attached, respectively.
|Table 1. 2010 Morelos Gold Project Drill Program Summary|
|El Limon||Infill/ Extension||8||2,312||2||281|
|Los Guajes West||Infill/ Extension||18||5,071|
|Los Guajes East||Infill/ Extension||10||1,223||1||118|
|Los Mangos||Step Out||6||2,493|
The Morelos Gold Project forms part of the Guerrero Gold Belt, host to one of Mexico’s most established gold mining districts. To date, the GGB has over 15 million NI43-101 ounces of gold in all categories, including Goldcorp’s 300,000 ounces per year Los Filos deposit and Torex’s Morelos Project.
Newstrike Capital holds the largest and most strategic mineral claims in the Guerrero Gold Belt. Newstrike’s management team was responsible for the discovery of over eight million of these gold ounces.