New York, NY, July 20, 2012/Resource Newswire/ - Sierra Madre Developments Inc. (TSX-V:SMG - "Sierra Madre" or the "Company") and its partner Riverside Resources Inc. ("Riverside") (TSX-V: RRI) have announced the results of two step out holes (CDDH 12-12 and CDDH 12-13) drilled approximately 50 meters to the east of the "Main Zone" of the El Capitan Target. El Capitan is a near surface, shallow dipping, oxide gold deposit exposed in the side of a low ridge that forms part of the Company's Penoles Project in Durango, Mexico.
Mining Review Online, an online periodical that provides news, updates and industry insights on undervalued and high growth potential resource companies stated: "These two step out holes confirm our belief in the potential of this project. Results indicate that the resource could be much larger than originally anticipated as CDDH-12 and CDDH 12-13 include some of the widest and best grade intervals encountered to date within El Capitan."
Mining Review's editorial on Sierra Madre can be found at: http://www.miningreview.net/sierra-madre.
CDDH 12-13 is a vertical hole drilled from a station approximately 50 meters east of CDDH 11-07 and intersected mineralization from surface to a depth of 131.15 meters. The entire hole returned an average grade of 0.555 g/t gold (including a 61.15 meter section that averaged 0.919 g/t gold) and was stopped in mineralization. CDDH 12-12 was drilled at an inclination of 60 degrees from the same pad and intersected mineralization from surface to a depth of 161.8 meters. The entire drill hole averaged 0.329 g/t gold and included a 29.31 meter interval that averaged 0.737 g/t gold. The true thickness of these mineralized intervals is estimated to be approximately 90% of the reported core lengths. Actual thicknesses have not yet been determined.
The following is a plan view map that shows the locations of all drill holes reported to date within the "Main Zone" of the El Capitan deposit:
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http://thenewswire.ca/client_files/2012-07-20-0.pdf
Mining Review Online further stated: "The value of the Company should increase as the size of the deposit increases. The Company's market price does not yet reflect this, which makes it a great opportunity."
Mining Review's editorial on Sierra Madre can be found at: http://www.miningreview.net/sierra-madre.
The eastern part of the Main Zone has returned the widest mineralized intervals encountered so far at El Capitan and mineralization appears to be open for expansion down dip of CDDH 12-13 and CDDH 12-11.
Assay results for CDDH 12-12 and CDDH 12-13:
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|Drill Hole |Inclination|From (m)|To (m)|Interval (m)|Au (g/t)|
|--------------------------------------------------------------|
|CDDH 12 – 12|-60 |0.00 |161.80|161.80 |0.329 |
|--------------------------------------------------------------|
|Including | |112.69 |142.00|29.31 |0.737 |
|--------------------------------------------------------------|
|CDDH 12 – 13|90 |0.95 |131.15|130.20 |0.555 |
|--------------------------------------------------------------|
|Including | |39.15 |100.30|61.15 |0.919 |
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Preliminary results of the 2012 program are considered significant because El Capitan appears very similar to Argonaut Gold's El Castillo Mine located approximately 90 kilometers south of El Capitan. Argonaut Gold is successfully heap leach mining El Castillo at an average grade of 0.32 g/t gold with a cut off grade of 0.15 g/t Au and El Capitan has even higher grades.
The results derived from Sierra Madre's drill program indicate serious upside potential. Preliminary bottle roll tests have indicated that the mineralization at El Capitan may be amendable to low cost cyanide leach extraction. To determine optimal leaching procedures Inspectorate Exploration and Mining Services of Richmond, BC has initiated systematic column leach testing utilizing approximately 1,200 kilograms of half core from the 2011 drill program.
For more details on Sierra Madre and its projects, please go to: http://www.miningreview.net/sierra-madre.
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SOURCE: Resource Newswire
Editor@Resourcenewswire.net
