Glencairn cuts more gold at Limon

Vancouver — Glencairn Gold (GGG-T) has tabled encouraging results from its Santa Pancha vein system in Nicaragua. Drilling is part of a 55,000-metre, US$5 million program which includes drilling on Glencairn’s three main projects: the Limon gold mine in Nicaragua, the Bellavista heap leach gold mine in Costa Rica, and the Vogel gold project in Timmins, Ontario.

About 40,000 metres of this drill campaign is ear-marked for the Limon mine with the goal of converting some of the current resources into the reserve category. The historical inferred mineral resource stands at 539,400 tonnes grading 7.1 grams gold, or 123,200 contained ounces. This resource lies adjacent to previously mined areas and was estimated using historical assays from existing underground workings. The past producing mine cranked out about 1.2 million ounces from ore ranging in grades form 12-to-14 grams gold per tonne between 1941 and 1988.

Another part of the drill program is designed to test a minimum of 12 separate targets near the Limon mine, including the La India property 45 km to the east, and several other properties in the area. La India was in production from 1938-1957, producing about 400,000 ounces of gold. Glencairn holds one of the largest mining land packages in Nicaragua, comprising 813.8 sq. km.

The current drill results came from the Santa Pancha vein system which hosts a tabular zone of epithermal-style mineralization that varies from discrete quartz veins to more complex hydrothermal breccias. Results are as follows;

• Hole 3092 cut 5.6 metres averaging 5.2 grams gold per tonne, starting 100.3 metres down-hole. This included a 1.82-metre section that averaged 13.6 metres.
• Hole 3094 cut 3.5 metres, from 109.0-to-112.5 metres, that averaged 2.9 grams gold.
• Hole 3096 intersected 7.02 metres, from 123.9-to-131.0 metres, that averaged 3.6 grams gold. This included a 2.02-metre section that assayed 10.9 grams gold.
• Hole 3098 cut 2.35 metres, starting 68.05 metres down-hole, that cut 6.7 grams gold.
• Hole 3102 intersected 3.30 metres, from 158.7-to-162.0 metres, that averaged 3.5 grams gold.
• Hole 3103 cut 7.8 metres averaging 6.2 gram gold, starting 183.5 metres down-hole. This included a 2.9-metre section that assayed 14.6 grams gold.
• Hole 3104 cut 1.7 metres, from 213.0-to-214.65 metres that averaged 4.0 grams gold.
• Hole 3107 intersected 6.95 metres averaging 13.8 grams gold, starting 193.75 metres down-hole. This included a 1-metre interval that averaged 78.4 grams gold.
• Hole 3108 cut 3.0 metres averaging 3.0 grams gold, from 219.5-to-222.5 metres down hole.

Meanwhile, at the recently discovered Santa Rosa vein structure, also on the Limon concession, Glencairn has planned an initial 12-hole drill program. Progress has been hampered by a combination of contractor and ground-condition problems. The company is looking into alternatives to expedite drilling, including bringing in a second contractor.

At the company’s Vogel property in Timmins, Glencairn states that drilling is about 40% complete although assays from most of the holes have not yet been received, initial results have been mixed.

At the Bellavista mine in Costa Rica, several targets on the 90 sq. km property will be tested during the spring in a 3,000 metre program. Targets on Glencairn’s property include the strike extension of the nearby Montezuma mine which produced about 100,000 ounces gold during the period 1897-1916, from a vein averaging about 10-12 grams gold per tonne, according to available records.