Minera Alamos (MAI) announced the company is continuing optimization drilling at its Santana Project Pit.
The drilling continues to extend mineralization at the project, located in Sonora, Mexico.
Results include one hole intersecting 284.8 metres grading 0.69 grams of gold per tonne from surface and ending in mineralization.
The 19 hole program, totalling 4,039 metres of new drilling, was initiated in late 2020 and continued into 2021 running parallel to the construction of the Santana mine. The primary purpose was to further delineate the outer limits of the main Nicho pipe structure, which is slated to be brought into operation as the current starter pit at Nicho Norte becomes further advanced.
"In parallel with the construction and ongoing ramp up of operations at the Santana gold mine, we have continued our exploration activities throughout this highly prospective area. The current drilling, although designed for pit optimization work, continues to provide positive surprises, especially at depth, as we test the outer boundaries of known mineralized zones. As we grow our understanding of the system we look forward to additional positive developments while we prepare to open up the larger Nicho main zone for mining following the successful opening of the starter pit at Nicho Norte.
In addition and in parallel with mining operations, multiple operational optimization studies are underway as we glean information from the early mining, leaching and carbon loading activities at the Nicho Norte mine site.
A full update on the operational ramp-up and gold recovery will be provided in the coming weeks," said CEO Darren Koningen.
The program, to date, has been a success and demonstrated that the Nicho deposit remains open to the south and at depth.
Drilling results will be combined with those from previous campaigns into the maiden NI43-101 resource statement for the Nicho Complex expected around the end of the year.
The Toronto company's strategy is to develop very low capital expenditure assets while expanding the projects' resources and continuing to pursue complementary strategic acquisitions.
Minera Alamos is unchanged, trading at $0.52 at 12:30 pm ET.