Guerrero Exploration (CVE:GEX) announced Monday drill results from its joint venture Chapalota property in Sinaloa, Mexico, uncovering significant gold and silver mineralization in five of the nine holes of the program.
Guerrero is earning a 70% interest in the Chapalota project through an agreement with Riverside Resources (CVE:RRI).
Gold was intersected in the subsurface, Guerrero said, beneath and along strike of both the Leonas and Habas zones targeted by the drilling campaign.
At the Leonas area, gold was intersected in quartz veining and fault breccia at depth, below and along strike 125 metres to the south of the outcrop previously reported as returning rock chip assays up to 32.1 grams per tonne (g/t) of gold.
A further 900 metres to the southeast along the structural corridor, Guerrero said drillhole CH-11-07 returned a 30 centimetre interval at 101.5 g/t gold from 165.5 metres downhole. This intercept was found within an interval measuring 3.0 metres, grading 11.6 g/t gold and 3.3 g/t silver from 164.8 metres downhole.
Other notable holes from this target included CH-11-02, which returned 1.6 metres at 4.02 g/t gold and 1.5 g/t silver from 20.3 metres, including 40 centimetres at 11.4 g/t gold.
Meanwhile, at Habas, an interval returned 70.2 metres at 11.0 g/t silver with low level gold, including 2.6 metres at 52.0 g/t silver in hole CH-11-08.
The nature of the gold and silver mineralization observed from geological logging of the drillcore, and from associated trace element alteration geochemistry, is consistent with that of an orogenic gold mineralized system, the company said.
President and CEO of Guerrero Exploration, David Stadnyk, said: "We are very excited about the drill results from the Chapalota property. The drill program achieved exactly what we set out to do and that was to prove that gold mineralization persists at depth along structures mapped by the soil geochemistry at surface.
"A result of 101.5 g/t certainly merits following up and the focus of our exploration team will be to expand on these results with further drill testing to define the continuity of the mineralization."
The project is located in the Western Gold Belt on the western side of the Sierra Madre Occidental Region of Mexico, and is located near several past producing mines that are now being re-developed and expanded. Recent work with Guerrero, including IP and soil surveys refined six target areas, two of which have now been drilled.
There remain at least four drill target areas and three former mining areas that have not been drill tested on the property, Guerrero and Riverside said.