Right at the beginning of the year, the gold price surpassed the USD 1,900 mark – and significantly. That also gives gold explorers like Sonoro Gold (WKN A2QCST / TSXV SGO) Tailwind. And now the company is also presenting excellent drilling results from Mexico!
In particular, the results of the five drill holes in the Buena Suerte gold zone are tough and once again confirm the trend towards higher grades from the company’s Cerro Caliche project. The drill holes now reported will extend the zone’s strike length from 450 to approximately 600 meters, while remaining open on strike to the northwest and southeast. The southeast extension confirmed the lateral thickness of the zone of around 150 meters.
Strong gold grades
The highlights of the drilling on the Buena Suerte Zone were:
– 7.62 meters with 1.321 g / t gold and 18.78 g / t silver and an additional 12.19 meters with 0.964 g / t gold and 19.5 g / t silver,
– 12.19 meters grading 0.686 g / t gold and 2.09 g / t silver,
– 12.19 meters with 0.498 g / t gold (from 4.57 meters depth),
– 7.44 meters with 1.170 g / t gold and 2.4 g / t silver from a depth of 16.76 meters!
These are excellent results, especially when you consider that the resources so far proven have an average grade of 0.495 g / t gold …
Mel Herdrick, who is responsible for exploration at Sonoro, is accordingly delighted. Buena Suerta has now become a large area with significant resource potential, he said, and looks forward to including this area in the new resource estimate to be produced in the coming months.
In addition to results from the Buena Suerte Zone, Sonoro Gold reported results from three holes drilled in the Japoneses Zone that also returned potentially minable gold mineralization. All of the holes were drilled northwest of the resource reported by the Company in 2019. This is where the northwestern part of the Japoneses mineralized zone lies. So it may be possible, Sonoro said, to include material identified by these holes in the proposed, potentially larger, heap leach operation for the bulk of the Japoneses Zone.
The next results are already in the pipeline
And within the next two weeks Sonoro expects to be able to present the next results, the results of 15 wells by the end of 2020! These will include two core holes from the Cabeza Blanca zone and one from the Gualalupe zone, and results from four holes from the Veta de Oro zone, where the recently announced discovery of a new, higher-grade zone is over one kilometer towards El Rincón- Zone extends. In addition, the Company reports results from four backwash holes from the Japoneses Zone and two from the Buena Vista Zone, as well as results from two backwash holes targeting near-surface gold mineralization in the El Rincón – Veta de Oro Gold Zone where it extends an additional 500 meters southeast to the Abejas Zone.
Investors can therefore expect a veritable flood of results in the near future, which could potentially give wings to the share if successful and if the gold price remains strong. Especially since the drills on Cerro Caliche are already being started again today, with Sonoro initially concentrating on parts of the Veta de Oro vein trend and its expansion into the El Rincón vein zone. We will definitely report!
On the way to the start of production in 2021
The positive drilling results of the past weeks and months have led Sonoro Gold management to the conviction that a much larger heap leach operation than previously thought may be possible. The company is now planning a capacity of 20,000 tons per day. The goal is to be in production by the end of 2021. And in order to be able to meet this ambitious schedule, Sonoro took the necessary steps late last year: In November, McClelland Laboratories were hired to carry out independent metallurgy tests to confirm and expand earlier internal results, and in December, Micon International to Prepare an updated NI 43-101 standard resource estimate – which management believes will result in a significant increase in resources as recent drill results include both new discoveries and the expansion of new and previously identified ones Mineralized zones yielded.
Based on the reports from McClelland and Micon, D.E.N.M. Engineering to produce an Initial Economic Assessment (PEA) of the Cerro Caliche project. The company expects the resource estimate and metallurgy tests to be completed as early as the second quarter of 2021 and the PEA will follow shortly afterwards!
So it is an extremely busy year ahead of Sonoro Gold as both backwash and core drilling will continue through May. The focus will then be on establishing the heap leach operation while the backwash drilling continues.
As for the core drilling that the Company is targeting at suspected high grade gold zones, previous drilling has shown Sonoro that the heating zone it is suspected of is closer to surface than anticipated. The targets of the next core drillings are now much closer to or border on the near-surface oxide mineralization, so that they could potentially become part of future, cost-effective mass mining – of course only if Sonoro is successful with the drillings. If that is the case, it could have very positive effects on the profitability of the project!
2021 will be an exciting, decisive year for Sonoro Gold. Investors can look forward to further drilling results in the short term, as well as a new resource estimate, which should be significantly more extensive than before, and a PEA (Preliminary Economic Assessment) for Cerro Caliche. All of these are already factors that could bring the share to new heights, especially if the gold price environment continues to be positive. Should Sonoro actually start production at the end of the year – before that, however, there are still hurdles such as project financing – and be able to show that this is profitable, we believe a complete reassessment would be due! The risks are still very high, but in our opinion these are also the opportunities.
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In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that GOLDINVEST Consulting GmbH and / or partners, clients or employees of GOLDINVEST Consulting GmbH hold shares in Sonoro Metals and that there is therefore a conflict of interest. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares in the company at any time. In addition, GOLDINVEST Consulting GmbH is rewarded by Sonoro Metals for reporting on the company. This is another clear conflict of interest.
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