The holes are part of a Phase 1 diamond core drilling programme that commenced in September 2019. The goal of the programme is to define a high-margin project with scale that retains excellent leverage to rising metal prices. The drill holes were focused on defining and extending the higher-grade mineralised footprint in the northern corridor along the north-east trend.
Taj Singh, president and CEO, said: "We are very encouraged that we continue to intercept broad zones of mineralisation with excellent grades along the north-east trend in areas where there are significant gaps in previous drilling. We are also excited to announce, based on the excellent exploration results we have achieved to date, we are expanding our Phase 1 drill programme by approximately 20,000m. With over C$40 million (US$29 million) cash on our balance sheet we are very well positioned to not only complete this expanded programme, along with an updated resource and PEA, but also to advance and drill test our property-wide targets at Cordero."
The initial Phase 1 Cordero drill programme was planned for 30,000-35,000m of core drilling. Forty-eight holes totalling 17,500m have been completed to date. Based on the strong results thus far and following the closing of a C$25 million private placement on June 8, the company is expanding its Phase 1 drill programme to 50,000-55,000m.
The additional metres will be focused on two key areas: 1) targeting of broad zones of breccia-hosted mineralisation in the east and north-east of both mineralised corridors and 2) testing of the width, grade and continuity of extensive high-grade vein systems identified in and adjacent to historical artisanal underground workings during the early history of the Project.
Following a shutdown of exploration activities due to COVID-19, drilling activity is expected to commence by the end of the month with one drill rig. Further drill rigs will be added when the company is confident that health and safety risks can be managed effectively.