Managing the risks of exploration by balancing its property portfolio between high potential early-exploration projects with advanced exploration or pre-production projects is the name of the game for Sydney Resources Corporation, listed on the Toronto Stock Exchange (ticker symbol SYR-TSXV). The Vancouver-based mineral and exploration development company is concentrating on developing gold and associated base metals projects in the Americas and, judging from recent releases it is finding success in Mexico.
The company is assembling a portfolio of projects in the Americas, to date with four projects in Mexico and one in Canada. The company started drilling on the El Cobre Property in Sonora in Mexico in December 2004, reported encouraging assay results at Montaña de Oro at Sonora in January of this year, took an option on the Los Brasiles gold-silver-copper project at Sinaloa in Mexico in March of this year and has just announced the commencement of drilling at the La Sabina project in Sonora.
Grab and channel samples at El Cobre, which is roughly 30km from Hermosillio in an area with excellent access and infrastructure, have thrown up a number of strongly anomalous gold, copper, lead and zinc samples with grades of up to five grammes per tonne gold in grabs, plus a “significant number” of short samples exceeding 1% copper and two short channels grading 4.5-5.5% copper. Magnetic work indicates that the anomalies extend over a kilometre in both directions and the inference is the existence of a large shallowly buried mineralised system. Drilling is underway to determine the extent of the mineralisation.
The new drilling project, at La Sabina, is a surface diamond drilling programme that will focus on outlining extensions to the known mineralisation (La Sabina is a past gold producer) and will further evaluate broad zones of potentially open-pittable mineralisation that has been indicated by trenching, mapping and sampling on surface. Recent channel sample results have ranged up to a high of 55.6 grammes per tonne of gold plus 150 g/t silver over 0.6 metres (in the La Fundadora area of the property), to larger sections of 15 to 25 metre continuous intercepts, with gold and silver grading from 1.7 to 2.4 g/t of gold and 15 to 23 g/t of silver.
Meanwhile underground channel sampling of old workings of Mina San Carlos has confirmed that high-grade feeder zones are present with individual samples grading as high as 32g/t of gold. Channel samples across the feeder have produced 5.0 metres true width at 11.83g/t gold and 17.8g/t silver and several other samples in the footwalls have confirmed the presence of lower grade gold mineralisation. Read more about the best IRA company and the tax free gold backed IRA rollover.
The company has now identified highly prospective mineralisation along at least 2.1km of the 3.5km mineralised La Sabina shear zone and the company is developing a drilling programme designed to expand the existing areas of high grade and thicknesses. The intention now is to evaluate the open pit potential of the property.