Oct 21 2010
Farallon Mining Ltd. (TSX:FAN) announces the discovery of a new zone of zinc rich, polymetallic, sulphides at its G-9 mine in Guerrero State, Mexico.
The new zone, which has been confirmed by several drill holes, drilled from underground, is both significant for its size and location. This discovery is the result of an extensive underground drill program designed to specifically target nearby areas for new discoveries, in line with traditional polymetallic deposit formational geology and consistent with the Company's business model.
The zone is up to 30 metres thick and is 100 metres in length and is open in two directions - east and west. It is 60 metres below the current mine workings in the West Extension and North zones (more specifically, mining Area 7). The current estimate of the volume outlined by drilling so far is approximately 200,000 cubic metres. Highlights of intersections within this volume include 6 metres of 14.9% zinc and 20 metres of 7.6% zinc, showing that the new zone has both the potential for excellent grade and significant volume.
Additionally, a new lens has been discovered to the east of the Southeast zone and beyond current mine workings. This lens has also been confirmed by several underground drill holes and is open to the east, with grades increasing as drilling progresses further to the east. The lens is also at a lower stratigraphic horizon from the Southeast zone and includes intercepts of 3.2 metres of 16.2% zinc and 2.5% copper.
Dick Whittington, President and CEO, stated "These discoveries are exciting in two ways. First, they confirm the basis for the Company's business model - that we will continue to discover new zones of mineralization adjacent to current G-9 mine workings - which is so typical of polymetallic deposits being mined worldwide. Second, and more significantly, for the continued success of this thesis, both discoveries are at lower stratigraphic levels in the local felsic horizons at G-9. This is the first time that we have encountered mineralization at depths below current G-9 mine workings, and it opens up the possibility for more discoveries at this lower stratigraphic horizon. The Company will be aggressively pursuing both these discoveries to incorporate them into the resource base by year-end."
Dan Kilby, P.Eng., is the qualified person for Farallon Mining and he has reviewed and approved this news release. Sample preparation for Acme Labs is done in Guadalajara, Mexico and the analysis is done in Vancouver B.C. Samples analyzed by Acme Labs are assayed for gold by fire assay fusion with an ICP or gravimetric finish, with the latter method used for additional assays if ICP analysis reports grades higher than 10 g/t Au. Silver, copper, lead and zinc, as well as 20 additional elements, are determined for all samples by Agua Regia digestion followed by ICP-ES finish. In the case of silver, re-analysis using gravimetric finish is carried out when ICP-ES analysis reports a grade higher than 300 g/t Ag. In the case of lead and zinc, re-analyses using 0.1 gram splits are carried out if the ICP-ES results report grades higher than 4% Pb and 20% Zn. Re-analyses for copper are not required, due to the linear nature of ICP-ES assay returns over a wide value range that far exceeds the range of copper grades at G-9. If ICP-ES analysis reports zinc grades higher than 10% Zn, the samples are assayed for sulphur, by LECO furnace. Samples analyzed at the on-site laboratory are assayed for silver, copper, lead and zinc by Agua Regia digestion followed by an AA finish. In the case of silver, a second round of Aqua Regia digestion, followed by an AA finish, is carried out when primary analysis reports a grade higher than 300 g/t Ag. Multi-element analyses and gold assays are not currently carried out.
Farallon operates the G-9 zinc mine on its Campo Morado Property in Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground zinc mine with important by-product credits of copper, gold, and silver. G-9 has total cash costs1 in the lowest 10% of zinc producers worldwide. The Company is targeting production at an annualized rate of 120 million pounds of zinc and 15 million pounds of copper per year.