Kimber Resources has built up a substantial gold/silver acreage position in Mexico that is best expressed via the company's flagship Monterde project (100%-owned), which lies in the heart of the massive (112 sq mile) Sierra Madre Gold/Silver Belt and upon which the company reported today, with exceptional results coming back from the two new test holes drilled to test for new mineralization on previously undrilled land just northeast of the existing Carmen deposit.
The Carmen deposit (in addition to Monterde's other two main deposits, the Carotare and Veta Minitas - total inferred resource estimates for the project as of May last year, and prior to new discoveries, project some 6.59M oz Au and 22.18M oz Ag) is the true focus of the project and this step-out onto additional acreage showing high-grade gold intercepts with abundant silver is indeed very promising news for KBX:
4.3 g/t Au and 166.6 g/t Ag over 6.9 feet
3.2 g/t Au and 222.0 g/t Ag over 4.9 feet
Some serious hits for Kimber on land that is just northeast of the Carmen deposit and the overall assay results are solid as well, indicating the structural mineralization here observed bears not only huge potential for further testing, but the chance of multiple structures. In fact, this view is supported by the proximal Cocos zone discovery (18.3 g/t Au and 374.3 g/t Ag over 23 feet - reported Jan 26, 2012) and the robust intercepts across the spectrum for today's reported drilling results.
The multiple intercepts of high-grade gold/silver, while not as dramatic as those listed above, are a very strong indicator that the underlying geological model for Monterde is sound. More importantly the localized model for Carmen and the newly identified mineralization, dubbed Carmen East, is mapped out in great detail by the assays (ranging from 0.2 g/t Au up to 1.6 Au in other data points, with anywhere from 24.0 g/t Ag, up to 80.4 g/t). Looking at the data sets side-by-side it's a pretty good bet to say KBX has their hands on a major find.
This adds handsomely to the company's already strong land position in Mexico, bolstering the value of the flagship site and improving the outlook for the flagship's main deposit. The increased output and work associated with new discoveries at Monterde benefit from the project's excellent logistics, with paved and gravel roads dovetailing out to state Route 16 from the nearby town of San Rafael (full service infrastructure base and the Chihuahua el Pacifico Railway runs right through it), leading over to Chihuahua. In addition to this good location, there is an extensive network of roads on the site, with ample access (especially around the defined resource and projected extensions).
President and CEO of KBX, Gordon Cummings, was ecstatic, citing the impressive intercepts from Carmen East and underscoring the evidence for multiple structures with the kind of gold/silver returns that will make shareholders eyes light up. Cummings stressed the need for further drilling in the Carmen East zone to extend these findings, confident that the same geological profile that has made Carmen so successful, will pan out in Carmen East.
The dollar has strengthened recently, as European sovereign debt overhang and the auspices of a Grexit (with Spain and Italy still causing major concerns) drive capital into the greenback (USD trading at a 22-month high against the Euro). But even as India's gold imports this month drop by more than half, the four month trough for the precious metal that has been money for some 5k years shows signs of filling, as Russia's central bank looks to add 100 tons of gold to the reserve this year alone.
For more information on prevailing activity at Monterde, or to learn more about this gold and silver developer, please visit the Kimber Resources website at: www.KimberResources.com
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