Silvermex Resources (TSE:SLX) saw its shares rise more than 16 percent Tuesday after it announced further underground drill results from five holes at its producing La Guitarra property, located in the Temascaltepec Mining District of Mexico.
The company said the latest results show the presence of a significant new ore extension on the main La Guitarra Vein, returning assays with bonanza grades of gold and silver.
“We are very pleased with the bonanza type intercepts we are seeing in this new section of the mine,” said CEO Duane Nelson.
“Never before have we seen gold grades over 300 g/t over such wide strike lengths and depths like this. We have already started to modify our mine plan to focus on developing this area. We are confident we can access the upper portion of the high grade ore body by the third quarter of this year.”
Highlights of the latest results include drill hole LGS-57, which intersected 147.473 grams per tonne (g/t) gold and 607.703 g/t silver over 3.2 metres. This includes a 1.45 metre interval of 306.99 g/t gold and 1,033.60 g/t silver, translating to a silver equivalent grade of 18,225.040 g/t.
Other notable intersections include drill hole LGS-56, which returned 5.35 metres of 18.059 g/t gold and 67.694 g/t silver, including 1.25 metres of 55.422 g/t gold and 158.036 g/t silver, translating to a silver equivalent grade of 3,261.683 g/t.
Drilling has shown the potential extension of the ore shoot 150 metres in depth and 100 metres in strike with the ore shoot still open to the northwest and at depth, the company said.
This indicates that significant mineralization extends below the deepest recorded mining on the La Guitarra Vein.
In addition, the Doncellas Vein in the hanging wall of the La Guitarra vein continues to return significant mineralization, Silvermex added.
Silvermex Resources is focused in Mexico and its portfolio of projects ranges from early stage exploration to production. Its core asset is the producing La Guitarra silver-gold mine.
Shares were up 12.8 percent on Tuesday afternoon at 48.5 cents.
