Gold producer Kimber Resources (TSE:KBR) reported on-going drill results from the Carmen deposit at its Monterde project in Mexico Monday, with another high-grade gold-silver intercept, prompting it to expand its drilling program.
The diamond core and reverse circulation holes were intended to expand and upgrade mineral resources potentially amenable to underground extraction.
Highlights include drill Hole MTC-117, which intersected 10 meters averaging 11 grams per tonne (g/t) of gold and 3.6 g/t of silver at a depth of 584 meters.
The hole intersected base metal veins similar to hole MTRD-476, but with lesser grades of lead, zinc and copper, the company said.
Kimber also said the intersection extends the Carmen structure, and confirms the geological environment in the structure is favourable for high grade gold-silver mineralization.
"Based on the excellent results of the Carmen Deep program this year, we have expanded the size of the original drill program from 30,000 metres to 38,000 metres adding a further 10 holes,” said CEO Gordon Cummings in a statement.
Kimber added drilling is expected to continue for the rest of the year, while the program may be further expanded, depending on results.
Meanwhile, drill Hole MTRD-474 was designed to test Carmen’s structure at depth on section 32, but due to deflection in the drill hole, it intersected the trace of section 33.5. The company said moderate grades were found.
“It is interpreted that the Carmen Zone at that location has been displaced by faulting and may be positioned elsewhere,” Kimber said.
Step out drilling will resume over the next four to six weeks around the discovery in holes MTC-117 and MTRD-476, to define the extent of the high grade, high sulphide mineralization in the area.
Kimber owns mineral concessions covering in excess of 39,000 hectares in the Sierra Madre gold-silver belt in Mexico, including the Monterde property, where three gold-silver mineral resources have already been defined. A pre-feasibility report is expected for Monterde this year.