From SH:
Canaccord's write-up:
Oro Gold is a gold exploration company focused on exploring and developing mineral projects in Mexico. The company is
under the stewardship of Darren Bahrey, President and CEO. Mr. Bahrey was formerly in a senior role indentifying
exploration targets and acquisitions for Placer Dome Exploration in Mexico and Central America. The company’s main
focus is the Rosario gold belt in west-central Mexico.
• Last week, Oro Gold announced that diamond drill hole 41 at its 100%-owned Trinidad project in Mexico had
intersected 11.9 g/t Au over 40.9 metres hosted in a hydrothermal breccia below the historic open pit at the project.
This is the best result from the project since the 2008 discovery hole intersected 8.5 g/t gold over 61 metres. This result
infills an approximately 300-metre gap separating the HS and Taunus South zones in the high-grade zone at Trinidad
(Figure18) and is located about 200 metres south of the original discovery hole.
• The Trinidad property is 110 kilometres southeast of the coastal town of Mazatlan. The property covers about 61.5
hectares (five mineral claims). Trinidad is host to its namesake former open-pit, heap leach gold deposit
(Eldorado/Almaden) that produced a modest 51,692 ounces in 1996. The company is currently executing on a 10,000
metre drill program. Hole 43, designed to test for deeper targets and potential feeders below the HS Zone, is currently
being drilled. An NI-43-101 resource is expected to be completed in Q3/10. Drilling is also planned at a number of
other targets, including the Bocas surface showing which occurs about 400 metres north of the north end of the
Taunus zone. At Bocas, a surface trench sample from similar brecciated host rocks to Taunus returned 63 metres
grading 2.9 g/t Au.
• The Trinidad area geology is largely Tertiary sediments and volcanics, with associated granitic to gabbroic intrusives
that are structurally controlled over an 80 kilometre long northwest-trending corridor. Mineralization in the area is
deemed to be hosted in an oxide gold-rich low to intermediate sulphidation epithermal vein system. Work by Oro Gold
suggests a regional northwest-trending corridor could represent an extensional pull-apart basin. Some specifics
relating to the extensional setting are that breccia/conglomerate units host mineralized clasts and a later higher-grade
mineralized matrix. This could be an indication of multiple mineralizing events possibly associated with a long-lived
extensional environment. The 14 million ounce Fruta del Norte deposit (Kinross) has been interpreted to be associated
with an extensional pull-apart basin environment.
An analyst has not visited the properties held by Oro Gold Resources.
Investment risks
The commercialization risks associated with mineral exploration and development are high; thus, investment in the shares
of Oro Gold Resources is for risk accounts only. |
