Junior gold company Timmins Gold Corp. (TSE: TMM) reported that in July it intercepted more mineralized zones from an ongoing drill program at its San Francisco mine, in Sonora, Mexico.
The Mexico-focused miner said the ongoing drill program could lead to a significant increase in the mineral resource at its San Francisco mine, as drill results have confirmed that the mineralized zones continue both beneath the currently planned pit bottom, and outside the perimeter of the planned pit limit.
It also could potentially lead to the discovery of additional satellite deposits within the existing land package, Timmins said in a statement.
The company completed 95 holes totalling 20,103 meters, in July. The 100,000 meter exploration program, which started in July, is expected to be finished by the end of the year.
Drill Hole TF-1312 drilled on the south wall intersected several mineralized zones, including 12.19 meters with a grade of 2.63 grams per tonne (g/t) of gold. Other notable results included TF-1309, which intersected 3.05 meters with a grade of 3.4 g/t of gold, including 1.52 meters at 6.275 g/t gold; and TF-1318, which returned 13.72 meters of 3.3 g/t gold, including 4.57 meters with a grade of 8.1 g/t.
Deep core drilling designed to find the main feeder system for the gold mineralization at the pit intercepted mineralization at a depth of 178 meters, continuing to a depth of 835 meters.
The company also said it found gold mineralization at the La Chicharra open-pit, which is about two kilometres away from the San Francisco pit. It plans to release results soon.
Timmins has hired a third party to complete an updated National Instrument 43-101 compliant resource estimate for the San Francisco mine, which will use assay results from over 85,000 meters of drilling carried out from June 30, 2010 to July 31, 2011.
Vancouver-based Timmins Gold’s San Francisco gold mine in Sonora, Mexico is a past-producing open pit heap leach operation forecasted to produce 100,000 ounces of gold annually at a cash cost of $489 per ounce.
The company’s shares closed at $2.68 on Monday on the Toronto Stock Exchange.