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Corex Gold To Drill Phase 2 in Mexico
By James West
MidasLetter.com
Wednesday, July 15th, 2009
Corex Gold's (TSX.V: CGE) Santana Property in Sonora Mexico will see the start of a 3,000 metre, phase 2 drill program that will follow up on the resounding success of the first phase program, in which 15 of 16 holes intercepted mineralization, with the best intercepts as follows:
- Hole # SR08-04: 44.20 metres of 1.05 grams per tonne gold from 7.62 metres depth;
- Hole #SR08-05: 22.86 metres of 1.31 grams per tonne gold from 1.52 metres depth
and 35.05 metres of 1.37 grams per tonne gold from 56.39 metres depth;
- Hole #SR08-06: 42.67 metres of 1.51 grams per tonne gold from 36.58 metres depth
"It's a phenomenal success on the first round of drilling, and that's where all the risk was", said Corex CEO Craig Schneider. "Now its really expansion drilling, so we'll be drilling down dip and along the extensions of the discovery holes, plus we've got some very exciting step-out targets across a 2 km by 2km geochem signature."
Corex collectively holds rights to acquire a 100% interest in two contiguous mining concessions for total consideration of US$1,250,000 over three years and a 2% net smelter return (NSR) on one concession with each 1% NSR purchasable for US$1,000,000. In addition to the concessions under option, Corex has staked two additional contiguous concessions and all four are collectively referred to as the "Santana Property".
The Santana Property covers approximately 7,000 hectares and is located approximately 200 kilometers east-southeast of Hermosillo, Sonora, Mexico.
Sonora State is rapidly becoming one of Mexico's most prolific producers of gold, and comparisons to the Carlin Trend in Nevada continue to attract a global roster of exploration companies to the area.
Alamos Gold (TSX:AGI) operates the nearby Mulatos Gold Mine, which last year produced 151,000 ounces of gold at a total cash cost of US$389 per ounce. Continuous exploration by Alamos in the area immediately surrounding the Mulatos open pit has resulted in substantially increased reserves available to the mill, and several promising new discoveries.
Mexico is the world's second largest silver producer, and ranks 11th in terms of global copper production. The country's biggest gold mine, La Herradura in Sonora state is owned and operated as a joint venture between Newmont Mining (NYSE: NEM) and Mexican mining conglomerate Industrias Penoles.
Corex is the subject of a just-released research report by Industrial Alliance Securities Inc. based in Montreal, Quebec. According to Corex the firm was prompted to feature Corex because of the size potential and possibility of a multi-million ounce discovery on Santana.
"The focus is obviously our Santana project, which is proximal to Mulatos Alamos Gold," said Schneider. "And there are other large deposits in the broader area. The area has traditionally been seen as more of a copper molybdenum district, and this property has never really been looked at with 'gold' glasses on.
We commence a 3,000 metre drill program on August 15th. Two thirds of that will be directed at known targets, with the remainder going to test step outs and other zones."
Zuloaga Property
Corex also holds a 100% interest in the Zuloaga (39,878 ha) property located in Zacatecas, Mexico acquired through a staking program completed in 2006/2007. In January 2007, Corex entered into an earn-in agreement with Goldcorp Inc.'s Mexican subsidiary, Glamis Exploration S.A. de C.V ("Goldcorp"). Under the terms of the Earn-In Agreement, Goldcorp has the right to earn up to an 80% interest in the Zuloaga property.
The Earn-In Agreement provides for Goldcorp to earn a 70% interest in the Zuloaga Property by spending US$4,000,000 over a 5-year period and paying the Company US$150,000 over an 18 month period with US$50,000 due upon signing the agreement (received). Goldcorp has the option to increase its interest from 70% to 80% upon paying 100% of the expenditures associated with placing the Zuloaga Property or any part thereof, into commercial production based on a mine development project approved for all or part of the Zuloaga Property, with 20% to be repayable to Goldcorp from the Company's related project cash-flows, or arranging the proportionate share of a debt financing. Goldcorp is currently up to date with all its financial commitments and joint venture obligations.
Corex Gold's board of directors features some prominent names on the global mining scene.
Mr. Schneider joined Corex Gold Corp in November 2003, and has been instrumental in advancing the company to its current stage of development.Mr. Schneider has over 10 years experience in the administration and financing of junior companies, and holds a B.A from the University of British Columbia. Schneider was a founder of Magnum Uranium, a company formerly listed on the TSX Venture Exchange that merged with Energy Fuels (TSX:EFR) in July 2009
Patrick Downey brings over 25 years experience in the natural resource sector with extensive development and operations experience throughout the world, with a focus on South America. Currently he is President and CEO of TSX -- listed Aura Gold Inc. Most recently he served as President and CEO for Viceroy Exploration Ltd. prior to its acquisition by Yamana Gold. He was also President of Oliver Gold Ltd. where he successfully negotiated the merger to form Canico Ltd., which acquired the Onca Puma Nickel project in Brazil and was recently purchased by CVRD and is now in development.
The geologist overseeing the drilling program on the ground in Mexico is company director Bruno Barde, who received his BSc. Geology in 1978 and a Master Degree in Geology in 1981, both from the University of Geneva, Switzerland. Mr. Barde has over twenty years experience in the
management of large mineral exploration programs in Europe, North and South America. Previously he was VP of Exploration for National Gold Corp., and participated in the scoping study of the Mulatos Project, Mr. Barde served in various senior management capacities with Placer Dome Inc., including President of Placer Dome de Venezuela where he participated in the planning of the Las Cristinas deposit.
Alan Hitchborn has over 28 years of experience in exploration, development, and production. His past successes include 9 years at Placer Dome Inc.'s Bald Mountain Mine in Nevada, where his team added 3,000,000 ounces of gold in reserves and resources at a cash cost of less than US$5.00/ounce. Most recently another team managed by Mr. Hitchborn was responsible for the discovery and development of 2,000,000 gold equivalent ounces at the Monterde gold-silver deposit in Chihuahua, Mexico owned byTSX listed Kimber Resources Ltd - (NYSE AMEX:KBX, TSX:KBR).
Follow the company's progress online at http://www.www.corexgold.com.
SOURCE: http://www.midasletter.com/news/09071501_Corex-gold-to-drill-phase-2-in-mexico.php
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