On Feb. 17, 2020, Golden Tag (TSX-V: $GOG, OTCQB: $GTAGF) released results from its ongoing exploration program at its San Diego silver project in Durango, Mexico. Past exploration efforts were primarily focused on high grade narrow veins, and a significant bulk tonnage zone called the Fernandez Zone which was discovered in 2012, approximately 450 metres below surface.
Recent exploration efforts have identified a second bulk tonnage zone that exists 150 metres closer to surface and 50 metres south, and have discovered a few zones within the first 300 metres that could potentially make the deposit amenable to open pit mining.
These results are from the first exploration program since 2012, following up on a historical resource that left behind one of the largest undeveloped silver projects in Mexico.
A 2013 resource estimate was completed by SGS using 59 drill holes amounting to ~33,000 metres and reported over 115 million ounces of silver and 1.5 billion pounds of zinc in the resource estimate.
According to the 2013 report by SGS Canada, resources could potentially be expanded by 20 to 50 million tonnes grading from 100 to 150 g/t AgEq. from existing structures, as well as lateral and depth extensions.
The most recent exploration results are demonstrating this conclusion.
Infill sampling of historical drill holes is revealing increased bulk tonnage potential and improved grades. The results come from two historical holes: holes SD-11-42 and SD-11-40. A total of 852 samples were sent for analysis, taken approximately every half metre.
The recent work indicates a significantly expanded size of identified mineralized zones of bulk tonnage potential and in one of the holes, increased previously reported grades by 10%.
Hole SD-11-42, Discovery of Second Bulk Tonnage Underground Zone, in Proximity to 74% of the Existing Resource Envelope
Infill sampling from hole SD-11-42 identified a significantly larger area of mineralization compared to the area originally sampled which returned high grade narrow vein results. The new infill sampling revealed mineralization begins at 239 metres from surface rather than 445 metres and extends to a depth of 527 metres, including 175.30 metres of 88.54 g/t AgEq., in the Travador Structural Zone.
Table: 2021 Infill Sampling from SD-11-42
The historical result from hole SD-11-42 outlined two zones that contributed to the resource estimate: Trovador Zone with 7.03 metres of 249.22 g/t AgEq., and MS Zone with 4.97 metres of 339.55 g/t AgEq. These two zones occurred at a depth from surface ranging from 445 metres to 520 metres.
Historical Results from SD-11-42 (Included in Resource Model)
Hole SD-11-40 Achieves 10% Improvement in Grade
The second hole from the recent infill sampling from historic hole SD-11-40 resulted in an increase in the reported grade by 10% and revealed three new zones of mineralization which were previously unreported or unrecognized.
Table: 2021 Infill Sampling from SD-11-40
This recent sampling extended the Fringe Zone up-dip by 3.3 metres and more significantly resulted in a 10% improvement in the grade, intersecting 298.02 metres of 101.96 g/t AgEq. compared to the 2013 result of 294.73 metres of 92.22 g/t AgEq.
Table: Historical Results from SD-11-40 (Included in Resource Model)
The 2013 historical result occurred at a depth of 487 metres to 782.08 metres, while the 2021 infill sampling revealed three new zones with mineralization beginning at a depth of 267 metres extending all the way to 782 metres.
Further Drilling Results, Assays on the Way
To date a total of approximately 2,700 metres of drilling has been completed. A total of 1,787 samples have been sent to ALS Geochemistry for analysis with assays pending.
The current drill program has been amended to include the Trovador Structural Zone, and results from drilling as well as infill sampling, will be included in a future resource update.
The successful infill sampling program will be expanded to 2,500 - 3,000 metres of historical diamond drill holes, to further prove the geological, mineralization, and grade continuity across the defined mineralized areas on the property.
With more results on the way, further results have the potential to significantly increase the mineralization and provide further grade improvements.
News In Summary:
- Discovery of new bulk tonnage zone
- Improvement in grades, suggesting further potential improvements from sampling historical holes
- Potentially expandable in a number of areas
- Cash balance of $8 million
- One of the largest undeveloped silver resources in Mexico:
- Indicated Resources: 16.5 million tonnes grading 60 g/t Ag, 0.71% Pb, and 1.22% Zn
- 31.6 million ounces (Moz) silver, 55.52 Moz AgEq.
- Inferred Resources: 42.05 million tonnes grading 62 g/t Ag, 0.9% Pb, and 1.31% Zn
- 83.8 Moz silver, 159.9 Moz AgEq.
About Golden Tag Resources:
Golden Tag Resources Ltd. (TSX-V: GOG, OTCQB: GTAGF) is a junior exploration company exploring for high-grade silver deposits. The Company holds a 100% interest, subject to a 2% NSR, in the San Diego property in Durango State, Mexico. The San Diego property is located within the prolific Velardeña Mining District, the site of several mines having produced silver, zinc, lead, and gold over the past century. For more information regarding the San Diego property please visit our website at www.goldentag.ca. Golden Tag has no debt and cash balances of approximately $8 million.
Website: www.goldentag.ca
Twitter: https://twitter.com/tsxgog
Disclaimer:
*The author of this article was compensated for the creation of this article in cash, no options. The author does own shares. This article is meant to serve informational and marketing purposes only and not a technical report and does not constitute a buy recommendation. As always, please do your own diligence.
