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Gold explorer Brigadier Gold (TSX-V:BRG / OTC:BGADF / FSE:B7LM) has announced the results of three drill holes made using diamond drill technology in the San Augustin Vein in Mexico’s Sierra Madre region.

These are part of a 5000 metre, 40 hole program in its Picachos Property, in Sinaloa. The miner reported 15.5g of gold per tonne over 1.6 metres at the San Augustin Vein. Assays have also been taking place on surface rock chip channel samples across the vein.

A sample of 45.63 gold per tonne was achieved between 76 and 77 metres. In addition, 82 g/t of silver was seen at this depth.

Reduced width of mineralised material

Michelle Robinson, the chief geologist supervising this project, said she was pleased that her vision of the project is taking place.

“As good as the assays were…the drill appears to have cut through old underground workings, reducing the potential reported overall width of mineralised material,” Robinson said. “With 40 holes and 5000 metres of drilling in this program, I’m confident we will continue to add significant value to the project.”

The drill program is currently active on hole number 18, having completed 2158 metres of drilling to date. The first 14 holes of the program tested approximately 225m of strike length in the vein, with holes 15-18 now testing Los Tejones, approximately 1km north of San Augustin, on the same regional east-northeast trending Cocolmeca shear zone.

Brigadier Gold says it is shipping a steady flow of samples to the SGS labs in Durango and says that further assays are expected imminently. We will continue to report on these as they occur.

Geology and other key factors

In terms of the geology, all of the first three diamond drill holes intercepted the mineralised fault contact between thickly laminated graphitic and pyritic argillite in the hangingwall and intermediate pyroclastic rocks correlated to the Tarahumara Foundation in the footwall. Mineralised portions of the fault are brecciated, and higher precious metal grades are evident in the cockade quartz breccias and crustiform quartz veinlets that occur in both argillite and in the volcanic rocks.

“To confirm high grade gold mineralisation in a vein system totalling 8km in length, within a property that hosts multiples of these systems is exciting and points to further discovery potential within the project,” said Ranjeet Sunder, President and CEO of Brigadier Gold. “Given Michelle’s intimate knowledge of Picachos, combined with a robust historical data set, we are confident that the prospective targets we have chosen will continue to yield strong results.”

These are just the first in a series of results we will be watching closely. We identified this explorer for a number of reasons: an experienced geologist who has a long track record in the Mexico gold and silver space, and who has had her eye on this property for a long time, was a big factor. The lack of any diamond drilling on the property to date was another, although there was already evidence of potential deposits not uncovered through historical mining activity.

Brigadier Gold still looks cheaply priced compared with peers also working in the vicinity, companies which have already yielded significant results. For more information, take a look at our deep dive on Brigadier Gold from 27 October.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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