Vancouver’s Bear Creek Mining Corporation (TSX-V: BCM) (OTCQX: BCEKF) (BVL: BCM) reported significant high-grade intercepts at its Mercedes mine in Sonora, Mexico — most notably including a rich interval of 62.59 g/t gold and 92.92 g/t silver over 7.2 metres.
The junior precious metals producer announced the drill results on Wednesday and the highest grade intercepts are attributable to the site’s Marianas deposit. These additionally include 47.7 g/t Au over 1 metre and 18.4 g/t Au in a 2.1-metre interval.
“We are very excited by the results of this underground drilling program, which have returned intercepts with gold grades substantially higher – in some cases up to 30 times higher – than the currently defined resources of the deposits in which they occur,” said Bear Creek’s Director Andrew Swarthout.
Bear Creek acquired the Mercedes mine from Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) in April last year. A technical report filed at the end of December 2021 indicated that the site contained 575,000 ounces of measured and indicated gold and 5.14 million ounces of silver.
“We are also seeing geological evidence including hydrothermal textures and higher gold and silver grades as we proceed to the north along the main Mercedes structure, which supports our belief that the source of mineralization in the Mercedes district may occur in the unexplored northern extensions of this important structure,” he added.
Marianas deposit map with new drill results outlined in yellow. Image via Bear Creek Mining
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Bear Creek says it is important to note that the new drill results are from outside of the Marianas deposit’s current reserve boundaries, which confirms that ore-grade mineralization is currently open to the north and at depth.
The company closed an $8.2 million private placement in mid-July and will be using the funds for exploration and development of the Mercedes mine and general corporate purposes.
Bear Creek’s revenue dropped by approximately 55 per cent year-over-year at the end of Q2 to $19.9 million. The company produced 9,212 ounces of gold and 39,827 ounces of silver during the quarter.
Other Canadian gold producers with operations in Sonora include Magna Gold Corp. (TSX-V: MGR) (OTCQB: MGLQF), owner of the state’s San Francisco mine; Alamos Gold Inc. (TSX: AGI), which owns the Mulatos open-pit heap leach gold mine there; and Sonoro Gold Corp. (TSX-V: SGO) (OTCQB: SMOFF) (FRA: 23SP), a company that owns and operates the Cerro Caliche and San Marcial gold and silver mining operations in the state.
Bear Creek shares rose by 3.37 per cent Wednesday to $0.46 on the TSX Venture Exchange but have been on a steady decline since the beginning of this year, dropping by over 47 per cent.
rowan@mugglehead.com
