Wednesday, 19th March 2008 (6333 views)

Gold intercepts from the first drill hole to be completed at the Deadwood/Sunburst project in New Mexico have been described as "very encouraging" by the company behind the scheme.

Micrex Development, which is exploring Deadwood/Sunburst as part of a joint venture with Mountain Rio Resources, said the first hole is part of a planned six-hole programme.

Intersections returned from it include 2.60 g/t gold over 0.49 metres, 1.43 g/t gold over 0.49 metres, 1.12 g/t gold over 1.27 metres and 0.88 g/t gold over 6.36 metres.

Historical estimates for the site made before the Deadwood Mine was closed down during World War II included average grades of 3.95 g/t gold.

Micrex said the results were "significant", although it added that the drill programme will have to be completed in order to properly define historic mineralisation.

It added, however, that given the grades and thicknesses of mineralisation recorded so far, the Deadwood/Sunburst property has the potential to be developed into a large-tonnage precious metal system.

The Deadwood/Sunburst property comprises the Deadwood Mine, which was partially developed to a depth of 182.88 metres and the Sunburst claim, which was staked in the 1930s to extend the Deadwood veins but has remained largely undeveloped.

 

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