Centenario Gold Corp. (CSE: CTG) has provided an update on its initial drill program at the Los Reyes copper-gold skarn project in Chihuahua, Mexico, reporting copper oxide intercepts and evidence that mineralization extends vertically below the historically mined Jibosa and Tueda zones. The announcement, distributed via NEWMEDIAWIRE, comes as the company completes five holes totaling 1,140 meters and ships 344 core samples to ALS Labs in Chihuahua for assay. No assay results have been received yet, leaving the grade and economic potential of the discovery undetermined for now.
The drilling results are significant because they suggest the presence of a large intrusion-related copper-molybdenum system with skarn mineralization along the contact between a granodiorite intrusive and Lower Cretaceous limestones and shales. The project lies in a regional mineralized belt that hosts major historic mines such as Santa Eulalia, Naica, La Ojuela and San Martín, and the Los Reyes concession contains the only significant historical workings along the intrusive contact, with the remainder held by Mexican mining company Penoles. That geological setting is why the early drill results are being watched closely by investors assessing whether Los Reyes could develop into a substantial copper-gold deposit.
According to core logging notes, hole RYS26-01, drilled between the Jibosa and Tueda shaft zones, hit copper oxides about 75 meters below surface and intersected skarn and hornfels between 125 and 175 meters. The hole also tested a strong geophysical IP anomaly identified from work by IMMSA in the late 1950s, and was completed to 304 meters after overcoming drilling difficulties in a clay-rich contact zone. Hole RYS26-02, drilled just below the Jibosa shaft, reached the granodiorite-limestone contact at 75 meters and encountered strongly oxidized copper zones with abundant hematite and breccia textures. A detailed cross-section and selected drill core for that hole can be viewed in Figure 3.
Hole RYS26-03, which tested the northern extension of old mine workings below the Tueda zone, intersected more than 120 meters of pyrite-dominant sulphides with chalcopyrite, plus quartz-pyrite-molybdenite veinlets in hornfels. Hole RYS26-04 tested lateral continuity 170 meters south of Jibosa and hit an iron-magnetite skarn between 171 and 187 meters. Hole RYS26-05, located 200 meters north of Tueda, intersected the contact zone at shallow depths between 47 and 61 meters, with core logging still ongoing. A location map of the drill holes and sections is available in Figure 1, while Figure 2 shows a cross-section and selected core from RYS26-01.
The project benefits from strong infrastructure: it lies about 170 kilometers south of Chihuahua City along Highway 49, the main artery linking Chihuahua to Torreon and Monterrey, with power and rail nearby. The landowner, a local rancher, supports the exploration work. Centenario Gold, a Vancouver-headquartered mineral exploration company focused on gold, copper and silver projects in the Americas, is listed on the Canadian Securities Exchange. Further information on the company and its properties can be found at www.centenariogold.com. The full release is also available through NewMediaWire.
For readers and industry observers, the key takeaway is that while visual evidence of copper oxides and sulfide mineralization is encouraging, the economic significance of the Los Reyes project will only become clear once assay results are returned. The company has cautioned that mineralization on adjacent properties may not be indicative of mineralization on its project, and the qualified person has not verified information on adjacent properties. Until assays arrive, the results point to a potentially large system but leave open the central question of grade and viability.
