Cerro Resources (ASX: CJO, TSX-V: CJO) in just scout drilling of three holes has identified a potential silver-lead-zinc strike at the Namiquipa silver project in Chihuahua, Mexico.
High grade enriched zone highlights include 0.82 metres at 1754.07 grams per tonne g/t silver equivalent from 166 metres, and 0.47 metres at 1388.9g/t silver equivalent from 164 metres.
Broader intersections held significant mineralisation, including 65.7 metres at 92.87 g/t silver equivalent from 260 metres, and 23 metres at 109.93g/t silver equivalent from 194 metres.
Cerro said that further drilling will continue to test the down dip and strike extensions, with geophysical and preliminary geological evaluations to date estimating the strike potential at 2.5 kilometres - over multiple veins.
The most important factor for the company is the identification of vein systems not previously reported, with initial system and grade indications highly encouraging.
To boost the speed of exploration, a second rig has commenced targeting vein extensions, with drilling to continue through the September quarter.
Initial drill holes have been designed to test potential extensions of the vein mineralisation from the historic La Venturosa Mine – which produced an estimated 14.4 million ounces of silver, 32,550 tonnes of lead and 43,530 tonnes of zinc from two prominent quartz/breccias vein systems.
Historic mining at Namiquipa consisted of underground mining along six main veins of quartz replacement breccias using at least seven shafts.
Mining took place over a strike length of 1,250 metres to a depth of 250 metres, with principal vein constituents in the sulphide zone are quartz, sphalerite, galena, fluorite, chalcopyrite with silver minerals and minor gold.
Namiquipa is a value add exploration project for Cerro in Mexico, with the company also focused on the Cerro del Gallo project in San Anton, with a 253 square kilometre tenement package across the world-class Mexican Gold-Silver Belt.
In the district between 1700 and 2004, estimated historic production is around 1.14 billion silver ounces and 6.5 million gold ounces.
CJO Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
