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Gammon Gold Inc. announced that it has signed the definitive purchase option agreements on the Los Jarros Properties, in Chihuahua State, Mexico.
“I am very pleased that we have completed the definitive option agreements on the Los Jarros concessions with Valdez Gold Inc. (“Valdez”). The addition of this project to Gammon’s existing land package gives the Company a commanding position in the greater Ocampo / Pinos Altos / Concheno district. These holdings allow Gammon to extend exploration from the Ocampo and Venus projects to prospective ground between these two properties and our existing land package, as well as new ground in this large district.” stated Peter Drobeck, Senior Vice President of Exploration & Business Development. He continued “Valdez completed substantial exploration on these properties in the 1990’s, resulting in the definition of a disseminated epithermal gold occurrence in the southern part of the property. This target area, the actual ‘Los Jarros’ occurrence, consists of a central rhyolite dome with surrounding silicified breccias.” Historical drilling by Valdez in 1999 cut strongly anomalous gold not only along the flanks of the dome, but also in a breccia complex on the south side of the dome system. The best drill hole from the breccia cut a long intercept of highly anomalous gold: 105.6 metres grading 0.56 grams per tonne gold from 1.5 metres depth, including 26.1 metres grading 0.70 grams per tonne gold from 81.0 meters depth. The gold mineralization in the breccias complex is disseminated in character, with all samples in the first 109 metres of the drill hole falling between 0.20 and 2.12 grams per tonne gold. Other intercepts in the dome margin also discovered substantially anomalous gold in what appears to be a structurally‐controlled setting. Selected results of Valdez’ past drilling are summarized here. Apart from the disseminated epithermal target in the southern block of claims, the Los Jarros properties control the potential northwest strike extent of the Concheňo vein system (being developed by Frisco Mining). Valdez’ historical work had identified three unexplained stream‐sediment gold anomalies within the land package. Gammon intends to explore the entire Los Jarros Project aggressively in the coming dry season. The Company plans to conduct a detailed geologic mapping program on the southern Los Jarros prospect, followed up by drilling extensions to the anomalous mineralization discovered to date, and to mount a regional reconnaissance program on the remainder of the property to determine if viable exploration targets emerge. |
