VANCOUVER (miningweekly.com) – Midtier gold producer Leagold Mining reported on Thursday that ongoing drilling of the Bermejal Undergound deposit at its Los Filos mine, in Mexico, has returned consistent high-grade mineralisation that holds the potential for a significant near-term resource upgrade.
The TSX-V-listed company, which will soon graduate to the TSX main board, reported programme highlights, including intercepting 7.2 g/t over 18.8 m, 6.8 g/t over 13.3 m and 26.3 g/t over 2 m from the oxide zone of the Bermejal Undergound deposit.
"These drilling results show the consistency of mineralisation along the contacts of the Bermejal intrusive and sill. Infill holes are tightening up the drill hole spacing and will enable an upgrade of the resource classification.
“These holes are also filling in gaps in the resource model which, when combined with the step-out holes, will increase the overall mineral resource. To date, 18 of the 20 holes drilled have intercepted high-grade mineralisation - this high success rate also indicates the potential for both the consistency and expansion of the deposit,” commented CEO Neil Woodyer.
Leagold is also progressing with engineering studies in preparation for Undergound development. Work to date has confirmed that Bermejal is a valuable mine development project that will enhance production and extend mine life at Los Filos, Woodyer said.
Leagold has to date completed more than 12 900 m (23%) of the 56 000 m Bermejal Undergound programme. A total of eight diamond drill rigs and two reverse circulation drill rigs are on site. The programme will be completed by year-end and these drill hole results will be incorporated in an updated resource estimate.
Meanwhile, Leagold also reported assays results for geotechnical hole BDG-04-16, which was drilled in 2016 into the oxide zone, below the intersection between the sill and the Bermejal intrusive contact. The company explained that assaying of this hole was delayed until further geotechnical testwork was completed. The hole returned intervals including 26.3 g/t over 2 m and 10.7 g/t over 7.8 m, providing further confirmation of the high-grade nature of the lower portion of the Bermejal Undergound deposit, the company advised.
Bermejal Undergound mineralisation currently extends about 1 600 m along the strike of the intrusive contact and has a vertical depth of about 600 m. The iron-oxide gold skarn mineralisation at Bermejal is like ore currently being mined at Los Filos Undergound.
The mineralisation occurs along contacts between the intrusive and carbonate host rock and step-out drilling provides extensive opportunities for identification and delineation of additional resources, Leagold stated. The mineralisation in the Bermejal Undergound deposit remains open in several directions.