Argonaut Gold (TSX:AR) has announced it has completed a 22 hole reverse-circulation drill program totaling 5,139 meters at the La Colorada mine in Mexico.
As quoted in the press release:
The drilling was designed to test for the down dip extension of potential open pit mineralization at the El Creston deposit. The Company believes the results of the 2017 drill program, coupled with the results of 70 RC holes drilled during 2016 (see press release dated October 3, 2016) (the “2016 drill program”), have the potential to expand the El Creston open pit beyond its current design.
The recently completed El Creston drill program was mainly designed to convert Inferred Resource projected down-dip to a Measured and Indicated Resource. All 22 holes were spaced along the northern fringes of the historical El Creston pit and drilled to intersect mineralized zones that dip northerly below the currently designed pit limits. In addition to upgrading Inferred Resources and confirming Indicated Resource, the 2017 drill program was intended to further de-risk the project prior to the commencement of mining. Table 1 below illustrates the El Creston deposit Mineral Resource estimate year-over-year that was most recently updated at December 31, 2016 and shows the high conversion rate of Inferred Resource to Indicated Resource through the 2016 drill program as well as the ability to discover new Inferred Resource. The results from the 2017 drill program are not included in the Mineral Resource estimate.