Timmins Gold Corp. (TSE:TMM)(AMEX:TGD)(NYSE MKT:TGD) said Wednesday that it has started an initial 5,000 metre core drill program at its San Onesimo project in Zacatecas, Mexico.
project consists of 5 claims covering a surface of roughly 6,400
hectares, and is located in a prolific mining district, the company said
- just 16 kilometres northeast of Goldcorp's (TSE:G) Camino Rojo project and 80 kilometres southeast of the gold giant's Penasquito mine.
targets were generated using a combination of prospecting, geochemical
soil sampling, induced polarization (IP) and ground magnetics.
led to the discovery of a "chargeability anomaly" located south of the
geological contact interpreted by the magnetic data.
coincides with a target identified by systematic soil sampling, the
company said. The target area is around 2 kilometres long by 1 kilometre
The drill program will include 11 holes at
a planned depth of between 400 to 500 metres, designed to test the
combined IP/magnetic/geochemical anomaly.
addition to the San Onesimo project, Timmins Gold also owns the TIMM
claims in Zacatecas, which consist of a 45,000 hectare claim package
next to Goldcorp's Penasquito project.
solely in Mexico, Timmins is in commercial gold production at its
wholly owned San Francisco gold mine in Sonora, an open pit heap leach
The company has forecast production at a rate in excess of 100,000 ounces of gold per year.
this month, Timmins reported record gold production in its second
quarter, despite downtime for the calibration of a new and larger
capacity tertiary crusher at its Mexican mine.
For the three
months that ended June 30, the company posted gold production of 23,203
ounces, up more than 39 per cent from 16,676 ounces a year earlier.
company also sold 23,499 gold ounces, representing an over 30 per cent
increase from the year-ago quarter. It maintained its full year output
guidance for 100,000 ounces.