MNC intersects vein gold grading 17.1g/t gold at Colombian project
Colombian gold developer Metminco (ASX:MNC), soon to be renamed Los Cerros Limited, reports that preliminary results from the second drill hole (CHDDH002) of the maiden drill program at Chuscal has encountered multiple gold mineralisation intercepts.
The Chuscal target is part of the company’s Quinchia Gold Project, located in the Mid-Cauca Porphyry Belt of Colombia, which is an emerging as a larger regional gold play and includes the 3.9 million ounce Marmato Project.
The best gold intercepts of this second hole include 2m at 8.28g/t from 248m, and 0.5m at 17.1g/t from 333m within 7m @ 2.07g/t from 331m.
A 320m wide zone grading 0.43g/t Au was encountered between 32m to 352m associated with porphyry style alteration with intermittent zones of higher-grade epithermal veining.
The hole confirms the structural model with higher grades directly related to higher density sheeted epithermal vein gold overprinting lower grade porphyry associated gold mineralisation.
Metminco’s Managing Director, Jason Stirbinskis said, “As was the case with the first hole ever drilled at Chuscal, the partial results of the second hole have been illuminating.
“We now have an improved understanding of both vein gold and porphyry gold targets albeit that we have received assays from only two holes which cover less than 100m strike of the 900m long Chuscal gold in soil anomaly.”
Metminco previously mentioned the emergence of the horsetail faults as the conduit or plumbing for the vein gold.
It intends to now build on that initial conclusion with the interpretation of multiple corridors of mineralisation (as per the image below), as evidenced by ratio analysis of surface results and high grade gold intersections in holes 1 and 2, together with high grade sampling along the artisanal mined Guayacanes veins including 83m @ 7.3g/t Au.
The third hole (CHDDH003) has just been completed for a total depth of 302m with the objective of testing the two northernmost splays off the “horsetail” and the Corporacion diorite which has been previously mined by small scale artisanal mines. This hole has intercepted horsetail structure interpreted to be the conduit for the higher-grade vein gold. Assays for this hole are expected late December.
Given encouraging results from the first two holes, the company’s next hole (CHDDH004), will target multiple horsetail structures and artisanal mined breccia mineralisation. .
The drill rig is currently relocating to drill pad four which is roughly equi-distant between holes 1 and 3 to test the Tres Cuevas corridor including the Tres Cuevas breccia – another zone of historic artisanal mining activity and is expected to drill through multiple splays off the horsetail structure.
Hole 4 drilling is anticipated to conclude prior to the Christmas break, with assay results expected in mid-January.
The company also provided a corporate update conforming that the settlement date for the sale of the company’s Mollacas assets in Chile and repatriation of funds (approximately A$1.5 million) is expected to occur in December, while the prospectus for the 1 for 5 listed Bonus Option is expected to be finalised shortly.
Gold sector activity
Hot Chili (ASX:HCH) yesterday announced one of the best global drill results of the year and the company’s best drill intersection so far from the Cortadera copper-gold porphyry discovery in Chile.
The result from diamond drill hole CRP0020D recorded close to a 1 kilometre intersection from surface and confirmed extensive high grade copper and gold across the core of the largest porphyry discovered to date at Cortadera.
The results are comparable to Newcrest Mining’s (ASX:NCM) Cadia East Project in Australia and the Candelaria Underground mine in Chile.
Other news this week comes from Columbian gold developer, Continental Gold Inc (TSX:CNL), may be acquired by Zijin Mining Group Co Ltd bodes well for Metminco.
Zijin has agreed to acquire all of the outstanding shares of Continental at a price of C$5.50 per share, for an implied transaction value of C$1.4 billion.
Continental’s Buriticá Project is not far from Metminco’s Chuscal target at the Quinchia Project which is also near the 3.9 million ounce Marmato Project.
Analysts UK broking house, SP Angel, were upbeat about the news in relation to other miners active in that area of Colombia, including Metminco as well as Orosur Mining.