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Written by David Yeager
The Concepcion del Oro gold district in the northern Zacatecas state of Mexico is no stranger to gold discovery. This region is home to some of the most significant precious metal discoveries in recent memory. With major companies like Goldcorp now firmly entrenched in the area, it is a very good place for junior exploration companies to be exploring.
Galore Resources Inc. (GRI - TSX.V), currently controls over 15,000 hectares of land in this prolific region. Their project, dubbed the Dos Santos project, lies directly north of Goldcorp's Camino Rojo acquisition and 35 km southeast of Goldcorp's Pe�asquito mine project. The property has excellent infrastructure, with a highway running through it and access to power on the property. With a massive land package secured, Galore has now switched its focus to systematically delineating and exploring the numerous high quality targets they have indentified to date.
El �lamo Target Drilling The most recent activity on the Dos Santos project has focused on an exploratory drill program aimed at testing mineralization on their El �lamo target. This sampling program, utilizing a conventional percussion track drill, was designed to test the extent of surface mineralization identified by a trenching program undertaken by the company earlier in the year. Terry Brown, VP of exploration for Galore explained to me that primarily he wanted to confirm that the surface mineralization was not simply a cap, but continued at depth. In total 35 holes were drilled to maximum of 32m and the initial results have been very promising.
As reported by the company in a news release on December 6th, Galore has received results for the first 15 holes of the El �lamo drill program. Overall the results are quite encouraging as significant gold mineralization has been confirmed at depth. The deepest hole reported, A25, hit an intercept of 4.47g/t gold over 12m (20m-32m) and actually ended in mineralization, leaving the prospect open at depth. The other highlight intercept was from hole A33 which hit 9.39g/t gold over 4m, starting at surface. Equally as significant is the fact that of the 15 holes reported 12 of them hit pockets of gold mineralization. This shows that the gold potential is widespread throughout the target area. The next round of results are expected by the company imminently and the data from the entire program will be used for planning a real exploration drilling program.
This will most likely include a far more significant drill program using reverse-circulation and/or core- drilling rigs in order to test the depth of mineralization even deeper. Currently the mineralized envelope at El �lamo sits at over 500m long, up to 110m wide and up to 32m deep. It remains open in at least two directions on surface and as previously stated also remains open at depth. Galore's exploration team is eagerly awaiting the results of a recently conducted ground magnetic survey on this target and others. They feel that the ground magnetic results, along with the results from the drill program will give them a better understanding of the underlying geology of the prospect. Investors should keep a keen eye out for the remainder of the results from El �lamo. Any more positive drill holes will have Galore entering 2012 poised to take advantage of the historically strong period for the junior exploration market between January and May.
Los Gemelos TargetAs good as the preliminary results have been at El �lamo there are other targets at Dos Santos that Galore will explore in the next year as well.
The first of these will be the Los Gemelos target. Literally translated it means "the twins," the target focuses on two small hills protruding from the desert pediment. There are several artisanal workings dotting the hills and trench samples have returned intercepts of up to 34.3g/t gold over 1.7m. Because of pediment cover over much of the target, the exploration team will rely on the results from the recently completed ground magnetic survey to pinpoint drill targets. Mr. Brown added that "Skarns usually have a nice contrast in the mag surveys."
Galore plans to drill between 20-30 holes into Los Gemelos starting in early 2012. As with El �lamo, Galore will utilize the circular track drill again for this program, keeping it very cost effective while achieving everything they want for a preliminary sampling program. Based on what they discover with the program they will move into a larger scale program hopefully sometime in late 2012.
The next 12 months promises to be a very busy year for Galore Resources. On their Dos Santos property alone they are attacking multiple high-quality targets with aggressive exploration. However, while Mexico remains their focus they are also currently moving forward with their other property located in British Columbia.
Taseko ProjectGalore currently has the option to acquire over 48,000 hectares in Southwest British Columbia. There is very good road access to the property which is only 5 hours south of Williams Lake and is only a short helicopter ride from Vancouver. The Taseko project is situated nearby several massive base metal deposits and historic precious metal mines. Most notably is the Prosperity project which is operated by Taseko Mines Ltd. (TKO - TSX). That property is estimated to contain 3.9 billion pounds of copper and 9.2 million ounces of gold in a billion tonne resource estimate. On Galore's property more than 18 different targets have been identified for further exploration. There is potential for both copper moly porphyries, with gold and silver, as well as precious metal vein systems on the property.
Currently, Galore is awaiting results from an aero-magnetic survey that was flown over the property. This will assist them in pin-pointing targets for further exploration. Management is also evaluating the possibility for strategic partnerships on this project as they seek to move it forward in a fashion that most benefits shareholders.
ManagementGalore Resources is led by a highly experienced team of industry professionals. Their VP of Exploration Terry Brown who currently oversees the Dos Santos project has been working in Mexico since 1992. Since then he's worked as Project Manager for Eldorado Gold and Alamos Minerals, VP Exploration for Duran Gold, and most recently, six years with Metalline Mining Co. as their VP Operations.
Adding to his expertise are Chairman William J. Coulter and President and CFO Michael W. Bryne C.A. who collectively have over 50 years experience in the resource sector. Together this team is building towards making discoveries on both Galore's projects.
Looking to the FutureThe next year promises to be a very busy one for Galore Resources. The results from the remaining 20 holes at El �lamo will be reported while the company plans to move right into drilling on the Los Gemelos target. Results from a recently completed ground magnetic survey on the Dos Santos project will help define targets for drilling programs for the Mexican project. In addition, they are continuing to work on their Taseko project in British Columbia, currently awaiting results from airborne geophysical surveys.
The most recent set of drill results from the company have seemed to spark the share price from trading near its 52 week low of $0.10 and continued success will only further drive the price higher. Now is the perfect time to look at Galore for your portfolio as tax loss selling is coming to a close and investors are looking for a fresh start in 2012. It truly seems that Galore is on track to fulfill their company motto of
"Explore. Drill. Discover."
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