Jun 08, 2012 (ACCESSWIRE-TNW via COMTEX) — New York, NY, June 8, 2012/Resource Newswire/ – Sierra Madre Developments Inc. and its partner Riverside Resources Inc. (“Riverside”) /quotes/zigman/478675 CA:RRI 0.00% have announced drill results including 20.9 meters of 1.01 g/t gold from the first two drill holes completed as part of the 2012 drill program at the El Capitan Target (a bulk tonnage oxide gold deposit), which forms part of the Company’s Penoles Project in Durango, Mexico. Drilling in 2011 tested approximately 60% of the strike extent of the zone and the objective of the current drill program (funded by Sierra Madre) is to test the down dip extent, possible extensions to the west and provide sufficient drill hole density for an initial resource calculation for El Capitan.
There are ten other targets on the Penoles Project including the recently announced Pinchanzo zone (as announced by the Company on May 23, 2012) and the previously mined Jesus Maria and San Rafael Ag- Au-Pb-Zn mines. The district is highly prospective with active mining operations nearby, and has proven to be a safe and cost effective region where projects can be efficiently developed towards production. Several geologists are presently onsite conducting a detailed evaluation of the Pinchanzo Target and significant results will be announced as they become available.
The first two holes of the new drill program at El Capitan, CDDH 12-01 and CDDH 12-02, were drilled from the same location in the central part of the known mineralized zone between CDDH 11-02 and CDDH 11-18. These two new holes returned some of the widest mineralized intervals encountered so far at El Capitan. Drill hole CDDH 12-01 was a vertical hole and terminated in mineralization at a depth of 123.1 meters. The second drill hole (CDDH 12-02) was drilled at an inclination of -80 degrees to explore the down dip extent of mineralization and intersected a 141.5 meter wide mineralized zone. Results from the first two drill holes are shown in the table below: (The true widths of the mineralized intercepts have not yet been determined.)
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|Drill Hole |From (m)|To (m)|Interval (m)|Au (g/t)|
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|CDDH 12 – 01|12.65 |123.1 |110.45 |0.365 |
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|Including |32.7 |123.1 |90.40 |0.430 |
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|Including |95.1 |116.0 |20.9 |1.011 |
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|A |13.55 |155.1 |141.55 |0.305 |
|CDDH 12 – 02| | | | |
|————————————————–|
|Including |120.55 |141.35|20.8 |0.727 |
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Three distinct, mineralized rock units have now been defined at El Capitan. The upper part of the mineralized zone consists of a porous, volcanic agglomerate cut by narrow quartz veinlets and hydrothermal breccias (averaging 0.2-0.5 g/t Au). At the base of the volcanic unit there is a shallow dipping, 10.0 to 35.0 meter wide silicified zone (averaging 0.7 to 1.5 g/t gold) and below this zone there is a sequence of oxidized shales that is also cut by quartz veinlets and hydrothermal breccias (averaging 0.2-0.6 g/t Au). The system is low sulfidation epithermal style with relative low silver values so far averaging about (1-4 g/t Ag) at the El Capitan body, but in other zones on the property there is high grade silver (100-500 g/t Ag) commonly with lead, zinc, and copper.
The results of CDDH 12-01 and 12-02 confirm that mineralization continues down dip from the area tested in 2011 and indicate that the upper part of the mineralized zone is almost flat lying. Although widely spaced, down dip step out holes drilled by Riverside in 2008 indicated the upper contact of the mineralized zone was shallow dipping the infill drilling in the main part of El Capitan shows that mineralization is in fact much closer to surface than had been anticipated. Drilling at El Capitan is continuing and assays will be released as they are received. Preliminary results of the 2012 program are considered significant because Argonaut Gold Inc. is currently heap leach mining the nearby El Castillo deposit (a low grade oxide gold deposit averaging 0.32 g/t gold with a cut-off grade of 0.15 g/t Au). El Capitan so far appears broadly similar to El Castillo in geology, geochemistry, and geomorphology, as both Castillo and Capitan are hills held up by low temperature silica. This is common for gold deposits in this part of Mexico and Riverside and Sierra Madre continue to explore for similar targets on the broader Penoles Project.
The Editors at Mining Review Online, an online periodical that provides news, updates and industry insights on undervalued and high growth potential resource companies have stated: “We are very encouraged by the results of the first two drill holes at El Capitan. They have returned some of the widest mineralized intervals encountered and confirmed the down dip extent of mineralization and intersected a 141.5 meter wide mineralized zone. The drilling confirms the robustness of this deposit and continues to increase the value of the deposit.”
The full editorial on Sierra Madre can be found at: http://www.miningreview.net/sierra-madre .
About Sierra Madre:
Sierra Madre is a TSX Venture listed junior mining company based in Vancouver, British Columbia, Canada. Management has extensive exploration and mining expertise and the Company’s business model is to acquire advanced gold and silver projects and build shareholder value by rapidly advancing our projects through the resource delineation stage.
Mining Review Online’s report on Sierra Madre can be found at: http://www.miningreview.net/sierra-madre .
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.
