Capitan Mining Announces Peñoles Drill ResultsBy Lorenzo Núñez | Fri, 05/21/2021 - 12:09
Capitan Mining announced drill results for its Peñoles Project, in the state of Durango as part of their 2021 Capitan gold zone program.
Holes 21-CARC-21 to 28 have the objective of defining and expanding known, near surface mineralization in the Hanging wall zone and locate new zones of mineralization in step-outs towards the southwest. It also will expand and better define the on-strike extensions of the known mineralized zones outside of the current drill defined area. In addition, it will delineate the extents of high-grade ore shoots in the Main Capitan zone, reported the company.
The Eastern holes 21-CARC-23 and 27 were collared within the east-central portion of the Capitan Main target area and were designed to test the down-dip extension of the main Capitan Hill zone on sections 50 and 000 respectively. Hole 21-CARC-23 unfortunately ran into technical issues after intersecting the Hanging wall zone. It returned multiple low grade gold equivalents values before being terminated. While Hole 21-CARC-27 returned multiple, low-grade intervals for most of its length, said Captain Mining.
In addition, Holes 21-CARC-24 and 26, both successfully intersected their respective targets, with each returning multiple intervals of low-grade Hanging wall style mineralization in the upper portions of the hole, over significant widths, and intervals and grades more typical of Capitan style mineralization in the lower portions. 21-CARC-24 included 10.7m of 0.56 g/t Aueq, while 21-CARC-26 had a gold equivalent of 111.3m of 0.17g/t Aueq and 33.5 m of 0.37 g/t Aueq, according to the press release.
"I'm pleased to report that all of our reported drill holes to date have intersected gold mineralization, highlighting the significant scale of the mineralized system at our Peñoles project. We are well underway to expanding the mineralization from the existing inferred resource at Peñoles with mineralization remaining open in most directions and at depth. With our recently announced private placement completed, Capitan Mining is fully funded for the next year," said Alberto Orozco, CEO of Capitan Mining.
The Peñoles Project Development Boost
MBN previously reported that Capitan Mining had closed a US$3.2 million non-brokered private placement, which will be used to further develop its Peñoles Project in Durango. Capitan had to issue 16 million common shares at C$0.20 (US$0.16) each, which gave it a gross profit of C$3.2 million (US$2.63 million). The strategic investment was provided by Michael Gentile, CFA, and is expected to be used primarily to further explore and develop the Peñoles project and for capital and corporate purposes.
The Peñoles project has the objective of expanding resources and has the potential to significantly increase the resource in the short term, as stated by Orozco in an interview with MBN, where he also mentioned that Mexico needs more quality projects that have a certain degree of maturity and can be developed into mines.