Alio Gold has discovered two new breccia targets within an area 1.5km west of the Ana Paula deposit, which is located in Guerrero, Mexico.
The discovery was made during surface mapping operations as part of the regional exploration programme at the Ana Paula project.
The company has currently completed approximately 1,300m of the planned 3,800m surface drilling programme, which is being conducted in order to test the known extension of the breccia below the proposed open pit.
Alio Gold CEO Greg McCunn said: “The discovery of two new breccia targets outcropping at surface and within close proximity to the existing mineral resource is an exciting development, and shows the potential of our 56,000ha land package.
“The surface drilling to test the known extension of the breccia below the proposed pit is designed to allow us to more fully understand the nature and extent of the mineralisation ahead of drilling from underground.”
Construction on the decline is currently in progress and the company expects to commence drilling from underground in the third quarter of this year.
Alio Gold has so far completed two of a planned six diamond drill holes and has commenced work on the third using a diamond drill rig.
The company has also been preparing higher-resolution geological mapping of areas close to the Ana Paula deposit as part of the regional exploration activity.