GENCO NEWS:
Genco Resources Ltd
Symbol GGC
Shares Issued 25,718,789
Close 2006-01-25 C$ 2.11
Recent Sedar Documents
Genco decides to play Nazareno on La Guitarra
2006-01-26 15:11 ET - News Release
Mr. James McDonald reports
DEVELOPMENT OF THE NAZARENO ZONE AT LA GUITARRA MINE
Genco Resources Ltd. reached a decision on Jan. 24, 2006, to proceed with the development of the Nazareno zone at La Guitarra mine.
Initial Nazareno development
The first stage of development will be the construction of a 300-metre development drift and two 100-metre crosscuts to allow for underground exploration and diamond drilling of the four currently known vein sets in the Nazareno vein swarm. The work program will test the previously defined resource with the objective of increasing the mineral reserve and also open the area for future production.
Permitting is currently being finalized and it is expected that drifting will commence in the next 30 days. Development and exploration work are expected to continue throughout calendar 2006.
The Nazareno zone
The Nazareno vein swarm is located in the El Coloso region of the company's claim area, approximately 3.5 kilometres northwest of the La Guitarra mill and approximately two kilometres northwest of the nearest current workings. Development will allow access to the Nazareno vein swarm and possible future access to the parallel Soledad vein.
Highlights from previous drilling by Genco in 2003 include a four-metre intercept grading 1,102 grams per tonne silver in diamond-drill hole BDG No. NAZ08-03 (see table below).
Hole Int. Au Ag
No. m gpt gpt
NAZ03-03 0.88 3.55 25
NAZ04-03 1.88 3.44 150
NAZ05-03 1.66 0.11 346
NAZ06-03 4.00 0.27 1102
La Guitarra mine
La Guitarra mine is located in the state of Mexico, approximately 2.5 hours driving from Mexico City. The mine consists of 7,257 hectares of mineral claims covering the entire Temascaltepec mining district. The mine has an existing 340-tonne-per-day mill and extensive mining infrastructure. Since the company acquired the mine from Luismin SA de CV in 2003, it has invested in infrastructure improvement as well as increasing reserves and production. Production for 12 months ended Dec. 31, 2005, at La Guitarra mine is shown in the table below.
Q1 Q2 Q3
Tonnes
milled 10,596 10,951 11,990
Grade
silver
equiv.
gpt 764 655 614
Ounces
Ag 93,516 107,428 93,964
Ounces
Au 2,238 1,863 1,895
Ounces
Ag
equiv. 230,615 218,016 211,074
Q4 Total
Tonnes
milled 12,387 45,924
Grade
silver
equiv.
gpt 615 659
Ounces
Ag 136,729 431,637
Ounces
Au 1,278 7,274
Ounces
Ag
equiv. 208,754 868,457
Incentive stock options
The company has issued incentive stock options to various directors, officers, consultants and employees of the company as well as its wholly owned subsidiary, Servicios Para la Industria Minera SA de CV. The options are exercisable to purchase 1,156,845 shares for a period of five years at an exercise price of $2 per share.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933 or any state securities laws and may not be offered or sold within the U.S. or to U.S. persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
|
