Stroud Resources Announces Commencement of Drill Program
TORONTO, Feb. 18, 2021 - Stroud Resources Ltd. (TSXV-SDR) ("Stroud" or the "Company") is pleased to announce that its drilling permit application has been approved by the Mexican Mining Authority for its Santo Domingo Silver Property ("Santo Domingo" or the "Property"), located in Hostotipaquillo Region of Jalisco, Mexico.
The Company expects to start drilling the week of March 1, 2021.
The Drilling Permit covers 13 drill pad locations encompassing 50 planned drill holes across the Property. The first phase of the drilling program will see 12 drill holes completed on three of the drill sites. These are expected to confirm our geological and mineral resource modelling of the Property. Geological modelling of Santo Domingo had identified additional mineralized zones running parallel to the previously announced Mineral Resource Estimate. (see Company news release dated November 20, 2017).
The current planned drilling program will also reach deeper into the hillside to sample the vein mineralization beyond where historical Spanish miners were active. It is our expectation that the grades of silver and gold in these zones should be higher as they have never been accessed. A second phase of drilling is also planned which will use the remaining drill sites to expand the mineral resources by drilling an additional 38 holes. The Company expects to prepare a new National Instrument 43-101 ("NI 43-101") Technical Report and a Preliminary Economic Assessment ("PEA") following the drill programs.
Should the initial Phase 1drill holes confirm the expected mineralization on the Property, the Company anticipates starting the second drill program in Q2 2021.
The Company had issued an NI 43-101 Mineral Resource Estimate and Technical Report on the Santo Domingo Property on November 20, 2017. This report is available online at SEDAR and on the Company's website.
Highlights from the technical report include:
- Measured and Indicated Mineral Resources increased to 25.74M silver equivalent ounces from 15.05M.
- Inferred Mineral Resources increased to 13.39M silver equivalent ounces from 10.68M.
- La Rayas vein indicates a mineralized zone that is 35 metres wide by 300 metres down dip and over 700 metres along strike.
- Guadalupe vein is typically 15 to 30 metres wide.
- Five additional veins have been identified which are part of the new drilling program, deeper into the hillside.
The Report confirms Measured and Indicated, and Inferred Mineral Resources as set out in the table below:
A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ee2b7f30-8181-40b4-a326-c1e2c9572af7
Cut-off grade was 45 grams per tonne silver equivalent over a three metre true width and a gold-silver ratio of 72:1 Continuity of mineralization was established by drilling on 50 metre centres, and using a specific gravity of 2.65
The Santo Domingo Property is located in the Hostotipaquillo region of Jalisco, which is steeped in a rich mining history. The Property falls directly along structure at the Santo Domingo Vein system and is representative of a host of old mining operations that are spread throughout the region.
Original workings of the Spanish dot the landscape throughout the Hostotipaquillo region, with numerous old workings, tunnels and adits found on the Santo Domingo Silver Property. These reach to a depth of 80 - 100 metres as the 16th century Spanish miners were limited by their technology. Investigation of these mine workings confirms how the adits were simply followed to only take the central high-grade ore. Historical reporting from around the region details the nature of the vein exposures. The early reporting suggests that mine cut off grades were in the order of 1 kilogram per tonne silver.
Stroud's exploration of the two main mineralized zones has drilled through many of the workings. These zones; La Rayas and Guadalupe, are a series of banded to breccia style epithermal quartz carbonate vein systems represented with miargyrite, galena, sphalerite, argentite and native silver and gold. La Rayas is 30 to 35 metres wide and Guadalupe is 15 to 30 metres wide. Both are parallel structures with greater than a 700-metre strike length and about 300 metre depth.
Stroud has drilled 44 holes on these two mineralized zones, with every hole encountering mineralization, which make up the existing 39M silver equivalent ounce mineral resource. The La Rayas and Guadalupe zones are within 150 meters of surface, and every indication suggests open pit capability for mining the ore.
The Property has not been explored very much beyond 100 metres from surface. Investigation of the old Spanish workings on the Property have pointed toward the presence of five additional mineralized zones running parallel to La Rayas and Guadalupe, deeper into the hillside. The Qualifying Technical report summarizes the drilling over the La Rayas and the Guadalupe zones, which are close to surface and were heavily mined by the Spanish miners.
Stroud management is excited by the new drilling program designed to explore beyond what the Spanish miners were able to reach. The program is designed to confirm the presence of the additional veins and verify the higher grades we anticipate are there.
Dr. Derek McBride, P. Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
About Stroud Resources Ltd.
Stroud Resources is a TSXV listed company focused on the exploration and development of its Santo Domingo epithermal silver-gold project in central Mexico.
For more information, please visit www.stroudsilver.com or contact Mirsad Jakubovic, Chief Financial Officer, Stroud Resources Ltd., Tel: (416) 888-8731, mirsad@cpamba.ca