Tuesday, 6 March 2012

Guerrero applies for 86,205-hectare property in Mexico

Guerrero Exploration (CVE:GEX) has applied for the 86,205-hectare Olinala property centred on a volcanic belt, the company said Monday.

The property, which is located in Guerrero state, Mexico, lies to the south of Cerro Dolores, a poly-metallic project owned by Goldcorp (TSE:G).

Toronto-based Guerrero said the Olinala property overlaps two volcanic belts with the potential for volcanogenic massive sulphide deposits.

Guerrero’s chief executive, David Stadnyk, said: "We are pleased with the ongoing extensive efforts of management in staking large surface exploration rights."

"The company is committed to finding a resource base through an aggressive exploration drill program on the Cerro Azul property, and a regional first pass sampling exploration work program on the company's Coatapec, Cibola and Olinala properties in Guerrero state."

Olinala also overlaps the eastern part of the Mixteca Terrane in Guerrero State. The geological area hosts many recent gold and base metal discoveries, including Cayden Resources (CVE:CYD), Torex Gold Resources (CVE:TXG) and the Los Filos Bermejal open pit mine with 248.6 million tonnes of 5.1 grams per tonne gold (g/t) and 40.97 g/t of silver.

Guerrero, which has the smallest market cap among the neighbouring publically trading companies in the area, has one of the largest land ownerships in the state.

Guerrero Exploration is a Canadian-based mineral exploration company with a focus on Mexican gold, copper and silver mining areas known as the Guerrero Gold Belt, Southern Mexican Gold Belt and the Sierra Madre Occidental Belt.

The Guerrero gold belt is located in the state of Guerrero, Mexico and has produced over 15 million ounces of gold to date.

It extends for at least 55 kilometres from the southeast to the northwest and remains open to exploration in all directions.

The company is earning a 70 percent stake in the Chapalota gold project through a joint venture deal with Riverside Resources (CVE:RRI).

Guerrero’s share price rose eight percent to 13.5 cents apiece on Toronto’s junior venture exchange Monday.

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