News: Santana Minerals starts drilling at silver, lead, zinc project in Mexico

Santana Minerals (ASX:SMI) has started a diamond core drilling program to test the northern extensions of the vein system at its Namiquipa Silver/Lead/Zinc Project in Chihuahua, Mexico.
   
This follows the company raising $1.95 million through a rights issue of 48,862,900 shares priced at $0.04 each in September.

Highlighting the prospectivity of Santana’s assets, Mexico is the largest silver producer in the world, producing 169.7 million ounces, or 20.7% of global production in 2013.
   
The 2,500 metre to 3,500 metre program will test the northern extensions of the Namiquipa vein system that was identified by a review of geological, geochemical and geophysical data.

This had recommended that a drill program of up to 17 holes be carried out to test the following targets:

- Zones of high IP chargeability associated with competent host rocks to the Northern extension area;
- A transect across the North-west off-set to associated ground magnetic low and coincident outcrop of quartz veins;
- Infill untested areas associated with IP chargeable zones; and
- Test zones associated with North-West faults which represent potential sites of silver deposition by the mixing of acid sulphate waters with magmatic fluids.
    
Namiquipa includes the La Venturosa silver mine that had historic production of 14.37 million ounces of silver, 32,550 tonnes of lead and 43,530 tonnes of zinc.

The company is also currently planning for drilling at the Cuitaboca silver-gold project, which it is earning an 80% interest in.

Santana had $1.18 million in cash and deposits at call as of 30 June 2014.

Santana Minerals will be presenting at Proactive Investors' 'Investor Luncheons' on 14 October in Melbourne and 15 October in Sydney. Seats are limited, register here to confirm your place: Melbourne - Sydney.