MGG closing in on a 100 M oz silver deposit?? 100 Million Ounces of silver?? Maybe—read on.
MGG released the results of their first five holes of diamond drilling at the Alamos Project in Mexico. They tested three structures:
- the bulk tonnage potential of the Minas Nuevas target,
- the Piano-Key structural model, and
- the Promontorio vein zone.
Comments:
1) Hole AL17-001 at the Minas Nuevas target cut 17.65 meters at 96 g/t AG; great, that seems to confirm that M-N can be expanded both down-dip and along strike. Very good.
2) And hole AL17-003 was drilled to test the Piano-Key structural model; it intersected a blind brecciated vein at 185.5 to 186 meters that returned assay values of 0.10%Cu, 0.29% Zn and anomalous values of Ag. According to MGG, that validates the Piano-Key model since they found a blind vein and anomalous silver—they just need to drill more holes to find the higher grade mineralized zones. Is this a big deal? Yes, it very well could be since the vein system could be as big as the Quintera vein, but obviously this new vein was never drilled!
3) Finally, we have holes AL17-004 and -005, which were drilled into the Promontorio vein structure. These discovered a new mineralized structure that returned highlights of:
- 20.15 m of 154 g/t Ag, 0.5% Cu, 2.3% Pb, 6.8% Zn; or 694 g/t Ag Equivalent ("AgEq")* in Hole AL17-004.
- 3.15 m of 322 g/t Ag, 0.47% Cu, 1.65% Pb, 3.29% Zn; or 521 g/t AgEq* in Hole AL17-005.
Now we’re getting something of significance, imo. If you look at the Hole #4 intersection, it is 20 meters wide and if you examine the graphic below, one can see that Hole #5 encountered mineralization about 12 meters wide. Let’s just say that the vein is around 15 meters wide--the strike length of Promontorio has been traced on surface for 700 meters, and the depth of the parallel Azulacas vein is about 250 meters; doing some quick math indicates that there could be 100 M oz. of silver in the new vein!
Minaurum still has to report on the remaining 2/3rds of the diamond drilling program, so I’m hoping for continued success at Alamos.