Golden Tag Resources Ltd has told investors that diamond hole drilling at its San Diego project in Mexico had hit high-grade silver relatively near the surface and close to existing historical underground workings.
The firm reported assays from three holes, which were part of a program targeting bulk-tonnage mineralization at the property.
Notably, one hole hit 1,110 grams per ton (g/t) of silver-equivalent over a length of 0.65 metres (m) from 184.3m depth at the CSplay Zone, while another at the Fernandez Zone intercepted a length of 240.3m at a grade of 83 g/t silver-equivalent starting from 615.9m depth.
"We are pleased to have intersected high-grade silver within proximity to existing historical underground workings, relatively near surface," said Greg McKenzie, CEO of Golden Tag, in a statement.
READ: Golden Tag Resources hits high-grade silver equivalent at its San Diego project in Mexico
The company boss added that the hole at the Fernandez zone provided "additional knowledge and confidence within the upper section of the Fernandez resource, and we are encouraged to intersect grades 19% higher than the closest hole vertically located 50 m higher".
"The Fernandez Zone clearly demonstrates higher grades as depth increases, and consistently showcases very broad intervals of mineralization," he told investors.
Another hole at the Montanez Zone hit 11m from 446.25m depth at 149 g/t silver-equivalent.
The Toronto-based company holds a 100% interest, subject to a 2% net smelter royalty (NSR), in the San Diego project, in Durango state.
The asset is among the largest undeveloped silver assets in Mexico and sits within the prolific Velardena mining district. Velardena hosts several mines having produced silver, zinc, lead and gold for over 100 years. The project has an estimated Indicated resource of 31.6 million silver ounces at an average grade of 60 g/t and 438 million pounds of zinc, along with an inferred silver resource of 83.8 million ounces at 62 g/t and 1.2 billion pounds of zinc.
Contact the author at giles@proactiveinvestors.com