Dec 16 2010
Yale Resources Ltd. (TSX-V:YLL) (FWB:YAB) has reported the discovery of a new gold/silver zone at the Guadalupe Property located in Zacatecas State, Mexico.
Holes 6 and 7 of the recently completed drill program successfully intersected multiple targets. Drilling at Guadalupe was performed by Yale on behalf of its partner Silver American Mining who is currently funding all work on the property.
Drill hole 7 discovered a previously unknown mineralized multiphase breccia with a weighted average of 1.31 g/t gold and 254.1 g/t silver over 18.6 metres including 11.50 metres with a weighted average of 2.09 g/t gold and 382.7 g/t silver. The highest silver and gold grades were returned from separate intervals of 1.3m with 3.26 g/t gold and 1.2m grading 920.0 g/t silver. The new mineralized zone is located approximately 50 metres north of the Santa Rosa Vein and is open in all directions.
Seven holes were drilled at Guadalupe totaling a combined 2,502.05 metres. Results from holes 1 and 2 were previously released in a news release dated Nov. 16, 2010. Holes 3, 4 and 5, located in the north end of the property, targeted a series of veins with numerous workings. Assays from outcrop and dumps in the area returned several assays grading greater than 200 g/t silver but the holes did not intersect any significant values.
The Guadalupe property contains two historically significant mines - the Santa Rita and San Antonio mines - and is located in one of Mexico's oldest mining districts, roughly 9 kilometres north of the Fresnillo (Proaño) Mine, the world's richest underground silver mine, operated by Fresnillo plc. Roughly 11 kilometres to the southwest of the Guadalupe Property is the Juanicipio Joint Venture between MAG Silver Corp. and Fresnillo plc.
Historic records containing references to the Santa Rita and San Antonio mines suggest that both mines were important and reached their height of production between 1910 and 1920 but were last in production in the 1980s.
To earn a 90% interest Silver America is required to pay Yale US $ 900,000, spend US $ 2,000,000 on exploration expenditures and issue 1,000,000 shares to Yale over four years. Cash payments will be due every six months and will increase to a final payment of US $355,000. Should the earn-in be completed Yale will retain a 10% participating interest in the property as well as a 2% NSR, which can be bought out in entirety for US $ 2,000,000. Yale will act as the operator for the project. The next payment due to Yale is on Dec. 30, 2010.
Source: Yale Resources Ltd.