Strong Drill Results At Depth Add Underground Potential to El Rayo
Soltoro Ltd. (SOL:TSX.V – $0.58 & 3VE – €0.409) announced results for the first three diamond drill holes of its 2013 drill campaign at the 100% owned El Rayo primary silver project in Jalisco Sate, Mexico. Hole RAY-12-152 showed excellent results with 91.3 metres of 129 g/t silver equivalent, including 11.2 metres of massive sulphide mineralization grading 537 g/t silver equivalent.
The 350 metres long hole tested the potential of the Las Bolas zone at depth. Currently this zone has an NI 43-101 compliant resource estimate of 59 million ounces of silver located near surface. This significant silver mineralization at depth provides Soltoro with an opportunity to define additional silver resources at Las Bolas.
The other two drill holes were completed north of the La Soledad West deposit (see map below). The drill holes were completed to test the down-dip extension of high-grade silver intersections encountered in diamond drill holes RAY-11-148 and RAY-11-149. Hole RAY-12-151 successfully encountered mineralization assaying 0.3 metres of 3,320 g/t silver further demonstrating the high-grade silver nature of the La Soledad West zone. Hole RAY-12-150 didn’t encounter mineralization due to hole deviation problems.
|Ag Grade |
|Pb Grade |
|Ag Eq Grade |
No Significant Intervals (2)
Note 1: Ag Eq – Silver equivalent includes Au, Ag and Pb and excludes Cu & Zn.
Note 2: Hole deviation problems, caused by a strong north-south-trending fault zone, prevented hole RAY-12-150 from reaching its intended target.
El Rayo Primary Silver Deposit
El Rayo is Soltoro’s main primary silver property. It has excellent access and infrastructure. Drill rigs may be driven right onto the property and can operate year round. Access to the Mexican power grid is readily available.
In December of 2011, Soltoro announced a Measured and Indicated in-pit resource of 77.4 million ounces silver for the project, up from 58.3 million ounces in June of 2011. The resource is based on approximately 13,341 metres of diamond drilling in 73 holes and 14,120 metres of reverse-circulation drilling in 104 holes in the Las Bolas, La Soledad, Highway Zone and El Rayo areas.
In 2012, Soltoro completed over 13,000 metres of diamond drilling at known deposits and newly identified mineralized zones. Based on these results,it’s fair to say that if the Company were to do a resource update today, it would prove up additional resources beyond the current 77.4 million ounces of silver.
2013 Drill Program
Soltoro is focused on defining open-pittable primary silver resources at El Rayo. The promising results from hole RAY-12-152, may add a new dimension to the property.
The three deep drill holes are currently being completed to the north, south and below drill hole RAY-12-152 to further test for sulphide mineralization along strike and at depth. On completion of these three drill holes, Soltoro will have better understanding as to the relationship of the sulphide-poor stockwork-type silver mineralization and the massive sulphide mineralization. These drill holes will assist in defining the extent of this sulphide-rich mineralized zone. Results for the three drill holes are expected in March.
2013 may become the year in which the underground potential of El Rayo is defined. Depending on results, the Company plans to drill a total of around 10,000 metres this year.
El Rayo currently has 77.4 million ounces, and Soltoro’s aim is to move it to the 100+ million ounces category. With over $2.5 million in the bank, Soltoro continues to drill test extensions to the known deposit areas at El Rayo in order to prove up further resources
Keep in mind that with a pure silver project that’s nearing the 100 million ounces resource mark, Soltoro is also an excellent buy-out candidate. Coeur d’Alene Mines owns 7.6% of Soltoro and recently completed a $300M senior note bond offering.
For more information on Soltoro, make sure to have a look at our Intro Report on the Company.
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