Orex Minerals (CVE:REX) announced Monday the second batch of holes from its phase II diamond drilling program at its Coneto gold-silver project in Durango, Mexico, sending shares higher.
Hole BCO-11 yielded a high-grade Santo Niño vein intercept of core length of 3.30 metres grading gold 4.34 grams per tonne (g/t) and silver 612 g/t, for a gold-equivalent of 16.00 g/t, or silver-equivalent of 840 g/t.
Within this intercept, the company returned 1.20 metres grading gold 11.77 g/t and silver 1,655 g/t, for a gold-equivalent of 43.29 g/t, or a silver-equivalent of 2,273 g/t.
Meanwhile, hole BCO-11 also returned a La Bufa vein intercept of 6.40 metres grading gold 2.41 g/t and silver 129 g/t, for a gold-equivalent of 4.87 g/t, or a silver-equivalent of 256 g/t.
Within this, 2.40 metres grading gold 6.08 g/t and silver 187 g/t was drilled, for a gold-equivalent of 9.64 g/t, or a silver-equivalent of 506 g/t.
“This is the first reconnaissance drilling in the La Bufa Zone at Coneto. This high grade drill result proves that La Bufa is a promising target area and deserves more detailed drilling,” said president Gary Cope.
The results announced Monday were part of a phase II, 12,000 metre diamond drilling program.
Orex, together with its partner Fresnillo Plc, is managing the campaign. The two parties hold contiguous mineral concessions in the Coneto Mining District, which collectively total about 17,600 hectares and cover more than 50 known mineralized epithermal quartz veins.
The project is located in the Mesa Central, on the eastern flank of the Sierra Madre Occidental Mountains.
The Coneto district is located in the heart of the Mexican Silver Trend, which hosts some of the world’s largest silver deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, and Zacatecas mining camps.
Shares in Orex moved up almost 8 per cent to 48 cents Monday afternoon.