El Sauzal first drill results. Market cap (not fully dilutted) is $224M. This was 11 months after gold topped at $416 in early 1996. At the time of this release gold was near $350.
Francisco Gold Corp (C-FGX) - News Release
Preliminary results from El Sauzal gold project
1996-12-06 09:55 ET - News Release
Shares issued 13,234,925
Close 1996-12-05 $ 17.00
Mr P. Randy Reifel reports
Francisco Gold has received preliminary results from its El Sauzal gold project in Chihuahua State, Mexico. Currently, 70% of the phase I diamond drill program comprising 5,000 metres has been completed, with the remaining 30% to be finished within the next 10 days.
El Sauzal is an acid-sulphate gold system where surface sampling and geophysical (IP) surveys, in conjunction with geological, alteration and structural mapping, have outlined an oxidized zone of silica-alunite alteration measuring 700 metres by 550 metres with a vertical exposure of 180 metres. Approximately 2.6km of trenching cuts yielded 585 surficial rock chip channel samples averaging 2.2 grams/tonne gold.
Twenty drill sites were prepared covering the surface gold anomaly. El Sauzal's steep vertical relief restricted the ideal location for certain drill sites. The topographic limitation resulted in numerous low elevation drill sites, where several mineralized horizons will not be tested by the respective holes. Drill orientations were designed to provide approximate true widths of the various mineralized horizons. Significant intercepts of seven holes are provided.
West Zone
Hole SZ96-06 was southeast on the west zone. The hole was designed to test a surface channel sample which returned 63.0 metres of 1 gram/tonne gold. From 3.1 metres to 18 metres (14.9 metres), the weighted average gold value was 1.28 grams/tonne. A second intersection of 8 metres from 66.1 metres to 74.1 metres returned a value of 0.88 grams/tonne gold.
Hole SZ 96-07 approximately 75 metres SSW of SZ96-06 undercut a surface channel with 16 metres grading 2.06 grams/tonne gold. Only partial results are available for this hole. From 3.1 metres to 102.0 metres (98.8 metres), the weighted average grade is 1.82 grams/tonne gold. This includes a section from 3.1 metres to 23.6 metres (17.5 metres) grading 7.88 grams/tonne gold.
Hole SZ96-08 is on the west central side, 250 metres WNW of SZ96-06. The hole was placed to test the lower horizons from the known western limits. No surface sampling was carried out above this zone due to topographic limitations. The hole intersected 180.8 metres grading 2.14 grams/tonne gold from 3.1 metres to 190.7 metres excluding a 9.9 metre dike. Within the intercept is a section of 47.0 metres grading 7.45 grams/tonne gold (41.5 metres - 88.5 metres) and section of 14.0 metres grading 18.78 grams/tonne gold (53.5 metres - 67.5 metres).
East Zone
Hole SZ96-01 was drilled at the northern most exposure of the east zone and was designed to undercut surface channels which returned assay values of 3.8 grams/tonne gold over a 50 metre interval and 1.0 grams/tonne gold over a 53.0 metre interval. From 20.7 metres to 40.9 metres (20.2 metres) the weighted average gold assay was 3.05 grams/tonne and from 87.5 metres to 97.8 (10.3 metres) the weighted average gold assay was 3.09 grams/tonne gold. These two intercepts correspond to the above surface channels samples and lie 50 metres below the surface. A third intercept from 166.4 metres to 175.4 metres (9.0 metres) returned a weighted average gold assay of 1.64 grams/tonne. This intercept lies 150 metres below surface with no corresponding channel sample.
Hole SZ96-02 was located approximately 80 metres SSW of SZ96-01. It was designed to undercut a surface channel which returned an assay of 1.8 grams/tonne gold over a 35.0 metre interval. From 5.1 metres to 17.1 metres (12.0 metres) the weighted average gold assay was 0.84 grams/tonne. The hole appears to have been drilled below the main target zone.
Hole SZ96-03 was located approximately 100 metres SW of SZ96-02. It was designed to undercut a surface channel of 17.5 metres grading 3.0 grams/tonne gold. Only partial results are currently available but the drill hole returned an initial section from 9.4 metres - 38.5 metres (29.1 metres) which assayed 2.28 grams/tonne gold. Further results are pending.
Hole SZ96-04 is approximately 170 metres east of SZ96-02. It was designed to undercut two surface chip channel samples, 25 metres of 3.3 grams/tonne gold and 11.4 metres of 5.0 grams/tonne gold. Only partial preliminary results are available for this hole. The section from 3.1 metres to 44.5 metres (41.4 metres) averaged 4.63 grams/tonne gold.
The results received to date confirm that El Sauzal hosts multiple high grade gold zones related to permeable alunite horizons with a strong structural control. There appear to be up to six favourable horizons distributed over a 400 metre stratigraphic thickness of which, to date, only two horizons have been drill tested. The lateral extent of these horizons has not yet been defined by the drill program as it is not restricted to the surface exposure of the silica-alunite zone, as demonstrated by the IP survey. These geophysical surveys have been very successful in outlining both high resistivity and high chargeability anomalies and in defining targets for drill testing.
Subsequent holes completed with assays pending, have tested further sections of both the east and west zones, potential extensions to the west and north and a lower zone to the southeast. Based on the strong gold/alunite association evident from results to date, it is expected that significant intercepts will be reported in the outstanding assay data. The remaining holes scheduled to be drilled in the program will be directed to intersecting the full thickness of the west zone from a location near the topographical peak and to further testing of possible extensions to the north.
This first phase drilling program will be completed by mid-month. Assay results from the balance of this program will be available in early January. A second phase follow-up program will commence in January using smaller, more mobile drill rig equipment. This program will focus on developing a reserve base on both major zones (west and east) with further evaluation of the structural controls of the higher grade mineralization.
Regional
Within the 30km x 20km regional caldera structure, Francisco has identified 27 geological targets for reconnaissance work and detailed evaluation in its land position. Presently, exploration work is being conducted on two targets namely, Cuesta Colorada and Cerro Zopilote, within a 4km radius of El Sauzal. Similar to El Sauzal, significant zones of surface silica-alunite alteration have been discovered and the targets are being systematically advanced to the drill-ready stage.
During the past 30 days, the Mexican government issued to Francisco's 100% wholly owned subsidiary, Minas de la Alta Pimeria S.A. de C.V., official title to the La Brigida concession which covers the El Sauzal area. Francisco acquired, through staking, La Brigida together with other concessions totalling 200,000 acres in this emerging gold district. |
