Capitan Silver Corp. has generated significant attention following its announcement regarding the Capitan Hill Oxide Gold Deposit. This site is situated within the extensive Cruz de Plata project in Durango, Mexico. The company recently finalized an updated Mineral Resource Estimate (MRE), which indicates a notable increase in the inferred mineral resources at this promising location.
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Highlights of the updated mineral resource estimate
The latest mineral resource estimate (MRE) reveals that the inferred mineral resources at Capitan Hill now total approximately 39,795,000 tonnes.
This estimate features an average grade of 0.41 grams per tonne (g/t) of gold, equating to roughly 525,000 troy ounces of gold. This represents a substantial increase of 115% compared to prior estimates. This notable enhancement is calculated using a cut-off grade of 0.18 g/t gold and assumes a price of US$2,500 per ounce.
Details of the resource comparison
The recently released data shows that the updated Mineral Resource Estimate (MRE) includes an in-pit resource that accounts for 78% of the total gold ounces calculated in the previous block model. In contrast, the historical MRE reported resources limited to a depth of 150 meters with a cut-off of 0.25 g/t. This yielded 20,722,000 tonnes at an average grade of 0.46 g/t, equating to 305,000 ounces of gold. The updated estimate offers a clearer and more precise understanding of the mineralization present at Capitan Hill, owing to extensive drilling and modern geological analysis techniques.
Upcoming activities and ongoing exploration
Capitan Silver Corp. has outlined significant plans for the near future, with approximately 15,000 meters of drilling scheduled. Of this total, about two-thirds has already been completed. Currently, only a small portion of the assay results has been made public, with results from 31 drill holes still outstanding. Drilling is expected to persist into the coming months. Furthermore, the company has commenced a comprehensive geophysical survey across the entire property, with results anticipated shortly.
CEO’s insights on the findings
Alberto Orozco, CEO of Capitan Silver, expressed enthusiasm about the updated resource estimate. He stated that while the primary focus remains on silver, the significant findings related to gold at Capitan Hill enhance the project’s overall potential. Orozco remarked, “The growth we achieved with limited drilling highlights the quality of the system and the optionality it brings to our silver-focused district.” His comments indicate the considerable impact that this updated mineral resource estimate is expected to have on the company’s strategic direction and shareholder value.
Capitan Hill mineral resource summary
The company has conducted extensive Reverse Circulation (RC) drilling at Capitan Hill, totaling 12,209 meters across 49 drill holes. This drilling campaign focused on expanding the known oxide gold mineralization along strike and down-dip. Additionally, infill drilling was utilized to enhance the understanding of higher-grade mineralization situated at the volcanic-sediment interface.
The updated mineral resource estimate (MRE) significantly enhances the understanding of the Capitan Hill Gold Deposit’s footprint at depth. This improvement is detailed in geological maps and comparative cross-sections. The new estimate was developed using advanced modeling techniques and updated economic parameters, ensuring a thorough assessment of the potential for economic extraction. This careful methodology has led to a more reliable and comprehensive characterization of the resource.
The enhanced mineral resource estimate at Capitan Hill marks a significant development for the Cruz de Plata project. This increase in resources indicates a promising future for Capitan Silver Corp. As the company continues its exploration and strategic initiatives, it is well-positioned to succeed in the competitive mining sector.
