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Golden Goliath's recent drilling at Los Hilos in Mexico shows bulk tonnage deposit potential

Jan. 12, 2011 1:03 PM ET
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Junior explorer Golden Goliath Resources (TSX-V: GNG)(PINK SHEETS: GGTH-F) said Wednesday that recent drilling results from its Los Hilos project in Mexico show the potential for a bulk tonnage gold-silver deposit.

The company completed 25 diamond drill holes at the site totaling 3,441 metres to define mineralization at the Filo de Oro zone.
Golden Goliath said that drilling found bulk tonnage mineralization over an area 1390 m long, 540 m wide and 340 m vertical.

In addition, surface and underground sampling beneath the Filo de Oro zone returned assays including 759.5 g/t silver and 0.36 g/t gold over 1.25m, including 1565 g/t silver and 0.619 g/t gold over 0.60m.

The bulk tonnage potential is further sweetened by other higher grade veins encountered in drill hole LH-6c, which returned 47.6m of 2.05 g/t gold and 20 g/t silver, with a high grade section of over 2.85m of 4.58 g/t gold and 31g/t silver.

According to the company, the deeper potential for porphyry-related mineralization was also established as a result of drilling in the southern end of Filo de Oro, where holes such as LH-18 encountered 1.55 g/t gold with 14.4 g/t silver.

The Los Hilos/Las Bolas properties are under an option and joint venture agreement with Agnico-Eagle Mines (TSX: AEM)(NYSE: AEM).

"The fact that Agnico-Eagle made an offer to option the property prior to the completion of drilling, I believe, demonstrates the potential of the property and a confidence in the work we are doing," said president of Golden Goliath, Paul Sorbara.

"What makes the potential for the property most exciting, apart from the encouraging results and Agnico-Eagle's interest, is the fact that all the drill holes completed on Los Hilos were mineralized, mineralization was encountered near surface in all but one of the drill holes and mineralization is open in all directions."

Golden Goliath said that final drill results from the most recent program completed at Las Bolas are still expected. Las Bolas is roughly in the centre of the company's land holdings in the Uruachic Camp, an emerging new gold-silver district in Mexico.

As of 10:48am EST on Wednesday, the company rallied nearly 1.9% to trade at $0.27.

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