Centenario Gold Corp. (CTG:TSX.V), fresh off the results of its maiden drilling program at its Eden gold-silver property in Mexico, announced it has outlined new drill targets across the property.
Eden hosts a series of high-grade, north to northeast-trending epithermal gold-silver vein structures. In one of them, Buenavista, Centenario has proven the existence of a 2.8-kilometer (2.8 km)-long mineralized corridor. In previous sampling, one area of the corridor returned gold grades as high as 239.9 grams per ton (239.9 g/t) and silver grades up to 1,390 g/t.
It was in a 650-meter section of this specific area that the company drilled the 11 holes of its initial campaign, each to a depth of 100–150 meters.
"The northern structurally controlled extension, and the upper and deeper portions of the Buenavista epithermal system, have yet to be tested," the company said in a release. "There are also important drilling targets across the other sub-parallel mineralized structures, especially the La Provedora prospect, located 1.5 (kilometers) east of Buenavista."
The information from the first drilling program confirmed that the Buenavista mineralized system is continuous at depth and along strike, Chief Executive Officer Alain Charest has said.
"The drill information will further help us to better vector in on the mineralized zones within the system," he noted.
The Catalyst: 11 Holes Already Completed at Vein
The company said it was proposing at least 11 new drill holes identified by drilling, sampling, and analyzing geophysical and soil geochemistry data at the project.
"During the last two months, the Centenario geological team has processed this new information and outlined several new targets to drill-test across the Eden property," the company noted.
Ten of the 11 holes already completed at Buenavista are spread across an area of 250 by 100 meters, just west of the old mine workings. Drill holes were located 65 to 150 meters from the trending high-grade Buenavista structure.
"The location and orientation of the drill holes were such that the upper and deeper portions of the east-dipping epithermal system have yet to be tested," the company said.
The upper 100-meter portion of the Buenavista structure extends directly down dip from where the high-grade gold and silver surface samples were obtained.
"The drilling that was completed did not test the upper 100 (meters) of the Buenavista structure," the company said. "The deeper portion of the Buenavista system, greater than 250 (meters) downdip from the surface exposure, also remains untested."
4 Mineralized Systems Identified
The Vancouver mineral explorer's highly prospective asset is in Mexico's historical Guadalupe de Los Reyes mining district. Centenario's Eden project spans 5,689 hectares and is comprised of three adjoining mineral concessions.
To date, the company has identified four mineralized vein-breccia systems at Eden. Along with Buenavista, its primary target so far, they are Paloma, Guadalupana and Provedora. Because Centenario has only drilled Buenavista and a small portion of it at that, numerous targets remain along the four structures and beyond.
"The company believes that the Eden property, as a whole, hosts a significant gold-silver system as proven by the exploration work completed so far," Centenario has noted.
The location of Eden bodes well for the project, too, the company said. Less than 8 kilometers to the south of the Buenavista mineralized corridor is Prime Mining Corp.'s (PRYM:TSX.V) Los Reyes gold-silver project. The mineralization and geology of the two projects are identical, Centenario said.
Los Reyes' latest resource estimate is 1,470,000 ounces of gold equivalent (1.47 Moz Au eq) in the Indicated category and 0.73 Moz Au eq in the Inferred category.
New Golden Bull?
Gold prices have started taking off, and some analysts are pointing to a new bull market for the yellow precious metal. It hit a new high Friday, Reuters reported.
In a March 21 article, Ron Struthers of Struthers Resource Stock Report wrote, "This could be the start of a super bull market in gold."
Spot gold was up 1% at US$2,397.84 per ounce as of 9:29 a.m. ET after hitting a record high of US$2,400.35, Reuters reported. Prices were up nearly 3% for the week.
Newsletter writer Captain Ewave recently analyzed the metal's movements and recommended being long on gold.
"Are gold and gold mining stocks on the verge of an explosive move higher?" he wrote. "Based on our analysis, the answer appears to be a resounding yes."
Streetwise Ownership Overview*Ownership and Share Structure
According to Reuters, management, directors, and insiders own 12.05%, or 5 million (5M) shares, of Centenario Gold.
From greatest to least percentage owned, these individuals are CEO, Vice President of Exploration and Director Alain Charest with 4.42% or 1.83M shares, President, Corporate Secretary and Director Douglas Fulcher with 3.01% or 1.25M shares, Chief Financial Officer Jonathan Younie with 2.19% or 0.91M shares, Director Kevin Milledge with 1.08% or 0.45M shares, Director Pablo Mendez Alvidrez with 0.99% or 0.41M shares and Director Mary Ma with 0.35% or 0.14M shares.
Retail investors own the remaining 87.95%. There are not any institutional investors at this time.
Centenario has 41.5M shares outstanding and 36.5M free-float traded shares. Its market cap is CA$1.04 million, and its 52-week trading range is CA$0.015−0.18 per share.
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Important Disclosures:
- Centenario Gold Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Centenario Gold Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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