Thursday, 28th February 2008 (1776 views)

Results from the first two drill holes at the Caballo Blanco project in Mexico has returned gold grades including 0.76 g/t over 65.53 metres, the company behind the work has announced.

Canadian Gold Hunter said the 0.76 g/t grade was part of a breccia within a broader mineralised zone that graded 0.59 g/t gold over 119.1 metres. Drilling on this hole has extended the depth of this area to 293.5 metres.

The second hole at Caballo Blanco was drilled on the Cerro la Paila target within the Northern zone, a high-sulphidation gold system that covers over 20 sq km.

Low gold grades were returned from this hole, the company said. However, it added that "very encouraging" silver returns from the same hole indicate the presence of a high-sulphidation gold system nearby.

Overall, Canadian Gold Hunter plans to drill 28 core holes to test the Cerro la Paila zone to a total depth of around 7,000 metres. Based on soil and rock geochemistry, this zone has a strike length of 800 metres, the company said.

Caballo Blanco covers approximately 15,000 hectares in Veracruz state near the Gulf of Mexico.

 

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