San Diego Drilling Confirms Vertical Continuity of Main Silver Zones
MONTREAL - Golden Tag Resources Ltd. reported results from three holes (SD-11-40, 44 and 38) from a 12-hole, 10,400-meter exploration program on the San Diego Property, Durango State, Mexico. The San Diego project is a joint-venture with Golden Minerals Company.
True Widths are estimated to be 50% of core length for SD-11-40; 75% for SD -08-35 and SD-11-44; and 85% for SD-11-38.
Holes SD-11-40, 44 and 38 focused on testing the vertical continuity of the principal veins between shallow surface holes and the 300 to 400 m down dip intersections in holes SD-08-34 and 35 completed in Phase 4 in 2008 at vertical depths of 300 to 600 metres below valley bottom. All three holes intersected the targeted veins. Drilling has confirmed that mineralization exists in a central corridor from surface to 500 to 600 metres at depth. Of significant importance is that these holes have tested further to the south of any previous drilling, which has resulted in the discovery of three new zones of mineralization to the south referred to as the "South Skarn", "Trovador" and "Lorenzo" zones, thought to occur in a "South Corridor". The horizontal widths of these zones are substantial and together are currently estimated to reach close to 250 m of total width. The new mineralized environment to the south is hosted in hornfels-altered packages of grey limestone and skarns and occurs as stringer zones and carbonate replacement zones.
These zones, while containing generally lower grades, are of much larger widths, which could potentially provide the project with targets amenable to a Bulk Mining approach, one of the objectives of this Phase 5 of exploration. Results presently in the process of being compiled from the remaining holes of this phase, namely holes SD-11-41, 45, 46, and 37A have tested this new South Corridor area and will allow for further correlation and projection of the applicable zones. Results will be released in the near future as they become available. The zones currently have the potential to extend over a vertical distance of 400 to 600 metres and a horizontal distance of approximately 250 metres. Mineralization remains open at depth and on strike.
These new discoveries compliment and are in addition to the earlier success on the property, which lead to a NI43-101 compliant Resource estimate that reported Indicated Resources of 0.371 million tonnes (MT) grading 245 g/t Ag, 1.80% Pb, 1.33 percent %Zn and 0.339 g/t Au representing 4.25 Million Ounces of Silver Equivalent; and Inferred Resources of 21.63 MT grading 110 g/t Ag, 1.84 % Pb, 2.21 % Zn and 0.134 g/t Au representing 214.3 Million Ounces of Silver Equivalent. The Joint Venture partners are confident that both the new southern zones and the continued exploration of the Principal veins in the central corridor may lead to a marked increase in Resources. A new Resource evaluation will be addressed in early 2012. The Deposit offers potential for both selective mining of narrow, high grade veins, and, the bulk mining of wider stringer and skarn zones. Tables and results have been compiled using estimated costs of mining and cut offs of 60$/tonne for bulk mining and $90/tonne for selective mining.