Portions of the mineralization are hosted by the Caracal formation, the same formation that hosts the deposit at Goldcorp’s Camino Rojo project, which is located 26km southwest of Mezquite with measured and indicated resources of 3,445,000 gold ounces and 60,708,000 silver ounces.
The drilling also discovered extensively anomalous, but low-grade gold-zinc mineralization in a breccia pipe on the east side of a quartz diorite intrusive.
Based on these results, the company is planning a follow-up soil geochemical survey prior to launching a follow-up drilling program slated for the first half of 2011.
Gammon Gold senior vice president of exploration and business development Peter Drobeck said that the company is encouraged by the mineralization discovered in hole BMXT-07, as it exceeded its expectations by discovering high-grade mineralization essentially on-surface and which appears to be disseminated in character.