Business
Gammon Gold Announces Option Agreement to Acquire the Mezquite Property in Zacatecas State, Mexico
Gammon Gold Announces Option Agreement to Acquire the Mezquite Property in Zacatecas State, Mexico
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\nHALIFAX, Mar. 23, 2010 (Canada NewsWire Group) -- /CNW/ -- Gammon Gold Inc. (\"Gammon\") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce that it has signed definitive purchase option agreements on a group of properties called the Mezquite Project (\"Mezquite\") in Zacatecas State, Mexico.The Mezquite Project, in Zacatecas State, covers 460 hectares and is located 45 kilometres southeast of Goldcorp's Penasquito property and 22 kilometres northeast of Camino Rojo (Goldcorp recently announcing its acquisition of Camino Rojo) as shown on the attached location map. (http://files.newswire.ca/258/Mezquite_Project_Map.doc) Zacatecas is currently one of the most active exploration states in Mexico. The property lies on a 70 kilometre belt with over 27.4 million ounces of gold and 1,611 million ounces of silver, or approximately 57 million gold equivalent ounces at a gold-to-silver ratio of 55:1, in published reserves and resources in all categories. The property occurs along a major north north-east striking lineament running from the Concepción del Oro mining district to the Camino Rojo discovery that terminates a series of curvilinear thrust-belt related mountain ranges.The Mezquite property includes Cerro La Llorona, a hill that consists of an altered intrusive with two adjacent breccia pipes cutting into skarn-altered and silicified Caracol Formation, a favorable host-rock in the Concepción del Oro district as well as the colluvial-covered flat areas to the south. Gammon's initial geochemical sampling from skarns on La Llorona showed values up to 0.14 grams per tonne gold, 0.75% lead, and 0.58% zinc from the skarn alteration. Samples from the felsic breccia pipe showed values up to 0.35 grams per tonne gold, 0.14% lead, and 0.41% zinc in outcrop. The intrusive and related breccias pipes occur along the south side of the hill, suggesting that the alteration system is open to the south. The combination of altered breccia pipes and anomalous gold-lead-zinc geochemistry alongside a large covered valley is analogous to the exploration model for ore deposits in this very productive gold belt. The Mezquite project has excellent infrastructure, being located next to a paved highway and existing electric power access.The option agreements include a series of option payments that totals US$ 1.4M over a 3-year period.\"...