Golden Minerals told investors it has kicked off a reverse circulation (RC) drill program at its Rodeo gold-silver open pit mine in Mexico in a bid to expand the high-grade resource there.
The company also reported assay results from a further 20 holes (for 1,253 meters (m), from the ongoing diamond drill program at the project, which is looking for continued gold-silver mineralization to the north of the area currently being mined.
The RC program comprises 35 holes, for around 2,500m, and will also drill several exploration targets adjacent to the open pit.
"The diamond drilling continues to intersect gold-rich zones adjacent to and north of the current pit," said Warren Rehn, CEO of Golden Minerals in a statement.
READ: Golden Minerals sees strong 2Q results from gold and silver production at Rodeo mine in Mexico
"The mineralized parallel structures east and west of the pit will be tested further with the reverse circulation drilling. We expect to complete the drill program in September and should have all results in hand early in Q4."
Rehn said he expected that the mineral inventory increases to be incorporated into the mine plan later this year.
Highlights of the latest diamond drill holes include an intersection starting from surface of 78.7m at a grade of 1.06 grams per ton (g/t) gold and 10.1 g/t silver in one hole.
That includes an intersection of 13.9m grading 2.88 g/t gold and 4.3 g/t silver, again from surface.
Another hole hit 64.4m, from surface, grading 0.85 g/t gold and 8.6 g/t silver.
Production at the Rodeo mine in Durango State began in January 2021, with material being trucked to the company's oxide mill at the Velardeña properties around 115 kilometers away.
According to an independent NI 43 101 preliminary economic assessment from April 2020, the current expected mine life is 2.5 years.
Colorado-based Golden Minerals is a growing gold and silver producer, primarily focused on producing gold and silver from its Rodeo mine and advancing its Velardeña properties in Mexico and, through partner funded exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing selected mining properties in Mexico, Nevada, and Argentina.
Contact the author at giles@proactiveinvestors.com