Compelo Energy - Latest industry news and analysis is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More

Leagold completes Bermejal underground drill program at Los Filos mine in Mexico

Leagold Mining has completed the Bermejal Underground drill program at the Los Filos mine in Mexico.

The program totalled 56,191 metres in 111 holes. Highlights of 10 new holes include 7.0 grams per tonne ("gpt") over 16.0 metres, 11.0 gpt over 8.6 metres, and 8.4 gpt over 10.6 metres. These results follow 86 holes previously reported. The remaining 15 holes are in the process of being sampled and assayed.

Leagold CEO Neil Woodyer stated: "The large-scale drill program commenced in April and has been completed on schedule. The program delineated several new areas of high-grade mineralization and has greatly increased the Measured and Indicated resources, based on data available as of August 31, 2017. A further update of the Bermejal Underground mineral resource estimate is in progress and is expected before year end. In addition, the Bermejal Underground ramp development has advanced 175 metres to date and is on track to reach the test mining area in Q2 of next year.

"Operations continue to benefit from improvements made earlier this year. The agglomerator and new overland conveyor will come on line in early 2018. With mine production of 173,551 ounces of gold up to November 30, we remain well positioned to achieve our full year production guidance of 185,000 to 200,000 ounces."

The Bermejal Underground drill program included 62 drill holes in the high-grade Central zone, 38 holes in the East zone, and 11 holes in the West zone. All holes intersected mineralization, and a total of 210 intervals of more than 3 gpt gold over a minimum of 3 metres true width have been reported to date. The multiple intercepts are due to development of oxide skarn mineralization along the intrusive contact, and also at the upper and lower contacts of a shallowly dipping sill that created the opportunity for the high-grade and wide zone of "sub-sill" mineralization.

The Bermejal Underground deposit is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres, providing extensive additional areas for further exploration. The Bermejal Underground mineralization extends approximately 1,600 metres along the strike of the intrusive contact and has a vertical depth extent of over 800 metres.

The Bermejal Underground ramp has advanced 175 metres and the portal has been completed with steel arches and a concrete floor. Although this is an exploration ramp, the development is fully dimensioned for production and permits for production are in place.