I just read the news release below on Palmarejo; I thought I should share it. Palmarejo’s property is adjacent to Paramount Gold’s property; they are really cooking. Palamarejo opened trading at .50 last December and is now trading over 3 bucks with a 200MM plus market cap. I was at the Cambridge House gold show and visited them. They are really excited about their potential in the area. The word is that Paramount has even better grades than Palmarejo. I missed the boat with PJO but I am really excited about Paramount at 1/3 the price of PJO stock. The other thing I like about Paramount is that they have access to a mill. When I spoke to Palmarejo they were in the planning process of their facilities. I think Paramount has a leg up in that aspect; I am look forward to seeing results from Paramount.
(COMTEX) B: Palmarejo Gold Announces Significant Widths of Gold-Silver Min ralisation at Depth in Las Animas, Guadalupe ( CCNMat B: Palmarejo Gold Announces Significant Widths of Gold-Silver Mineralisation at epth in Las Animas, Guadalupe ( CCNMatthews )
LONGUEUIL, QUEBEC, Oct 6, 2005 (CCNMatthews via COMTEX) -- Palmarejo Gold Corporation (TSX VENTURE:PJO) is pleased to announce further results from its Guadalupe Silver-Gold Project in the Temoris District, Chihuahua, Mexico.
The Guadalupe Project is approximately 7 kilometres southeast of the Palmarejo Project on the 100% owned San Carlos tenement and is within the Trogan exploration licence area held by the Corporation's 100% owned subsidiary, Planet Gold SA de CV ('Planet Gold').
Drill hole TGDH035D, drilled to intersect deeper portions of the Las Animas clavo, returned 29.5 metres * 2.84 g/t Au and 193 g/t Ag (5.81 g/t AuEq). This hole confirms the down-dip continuity of Las Animas and supports the exploration model that gold grades improve at depth. All results from holes TGDH023D to TGDH036D have been received and some highlights (at a 1 g/t AuEq cutoff and 1 metre internal waste) include:
- 29.5 metres * 2.84 g/t Au and 193 g/t Ag (5.81 g/t AuEq) (TGDH035D) - 6.5 metres * 0.49 g/t Au and 99 g/t Ag (2.01g/t AuEq) (TGDH029D) - 4.5 metres * 0.92 g/t Au and 131 g/t Ag (2.93 g/t AuEq) (TGDH023D) - 4.3 metres * less than 0.05 g/t Au and 356 g/t Ag (5.43g/t AuEq) (TGDH033D) - 3.5 metres * 1.44 g/t Au and 143 g/t Ag (3.64 g/t AuEq) (TGDH034D) - 2.5 metres * 0.66 g/t Au and 292 g/t Ag (5.15 g/t AuEq) (TGDH028D) - 2.5 metres * 0.88 g/t Au and 136 g/t Ag (2.97g/t AuEq) (TGDH030D)
This current drilling program is designed to test potential for high grade silver-gold mineralisation at depth along the Guadalupe structure. The results from TGDH035D confirm the Corporation's geological hypothesis of gold-silver occurrence at Guadalupe and give the Corporation confidence to expand its drilling program, subject to rig availability.
Diamond core drilling commenced on 23 June 2005 and 21 holes have been completed since the last announcement including 4 diamond tails of RC drill holes. The Guadalupe and Las Animas structures have only been tested to a maximum depth of 100 metres below natural surface.
The Guadalupe Project consists of a series of northeast dipping quartz veins that can be traced for 1,500 metres along strike. The northern portion of the structure is known as Guadalupe, the central portion is known as El Salto and the southern portion of the structure is known as Las Animas.
Drill holes TGDH024D to TGDH030D were drilled to confirm structural continuity between Las Animas and Guadalupe. All holes crossed the structure between 80 metres and 100 metres below surface. True width of the Guadalupe/Las Animas structure averages 8 metres. Mineralisation is characterised by quartz-vein breccia with high grade commonly localised near the footwall contact of the structure. Two mineralisation styles have been observed:
- Quartz-carbonate-base metals-Ag
- Quartz-carbonate-pyrite (A Au)
The quartz-carbonate-pyrite (A Au) style predominates at high levels in the main Guadalupe and El Salto structures. Visible gold, interpreted to be of supergene origin, has been identified at El Salto.
Hole TGDH035D targeted the Las Animas clavo at depth and intersected the main structure between 140 metres and 160 metres (below surface). The mineralised QVBX is 19 metres wide and dips 45 degrees to 65 degrees northwest. Gold values are higher near the hanging wall and footwall contacts relative to the central part of the structure, however Ag values are more uniform than Au throughout the mineralised interval. Both quartz-carbonate-base metals-silver and quartz-carbonate-pyrite mineralisation styles are present.
TGDH015D is a core tail of RC hole TGDH015 and shows the down-dip extension of the mineralisation encountered in drill hole TGDH016. Drill hole TGDH031D is a core twin hole of RC drill hole TGDH016. TGDH016 was abandoned and had bottom of hole mineralisation. TGDH031D not only twinned the RC hole but went beyond the RC hole depth to determine the extent of the mineralisation in the footwall splay.
Hole TGDH033D intersected a 4.35 metre wide zone of high Ag values (30 metres from surface) in a footwall structure oblique to the main Guadalupe Fault. This intercept supports the hypothesis that oblique footwall faults are significantly dilated and may contain high-grade silver mineralisation at shallow levels
Confirmation of high grades over significant widths at Las Animas permits confidence that additional clavos may exist at depth. Furthermore, numerous zones of high level clay alteration remain to be tested along strike to the north beyond the limit of existing drill coverage. Future drilling is planned to test down-dip and along strike of the main Guadalupe structure, and to further delineate the Las Animas clavo.
The technical information contained in this release was compiled in accordance with the Listing Rules of the Australian Stock Exchange Limited, by a competent person who is a corporate member of the Australasian Institute of Mining and Metallurgy and who has consented to the inclusion of such technical information in the form in which it appears in this release. The competent person is Kenneth M. Phillips, geologist of VOP Mining Services Pty Ltd who is also a director of Bolnisi Gold NL, the Corporation's majority shareholder. Mr. Phillips is a qualified person under Canadian Securities Administrators National Instrument 43-101 ("NI 43-101").
Posts: 22 | From: Ottawa | Registered: Jan 2005
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