Having raised US$2.5 million, Mallon Resources (NASDAQ) and its 80%-owned subsidiary, Laguna Gold, are engaged in exploring the Rio Chiquito property in Costa Rica.
The program includes 8,000 metres of additional core drilling and the preparation of a bankable feasibility study.
Situated in the Arenal-Fortuna district, Rio Chiquito already contains a defined resource of 9.1 million tonnes grading 1.36 grams gold and 8.79 grams silver per tonne (or 400,000 oz. gold and 2.57 million oz. silver). Mallon hopes to enlarge the minable resource through drilling.
Epithermal stockwork and vein mineralization is hosted in Miocene-Pliocene volcanic and volcaniclastic rocks. The deposit exists within a large, arsenic anomaly, within which geochemical sampling has identified another five areas of gold mineralization for drill-testing.
The company plans to carry out a geophysical survey to enable it to select drill sites in the area adjacent to the main Rio Chiquito deposit, which is open to the south and at depth. Geophysics will also be used to evaluate the Agua Caliente prospect, 1 km to the south.
Laguna, which has a 90% interest in the property, has been active at Rio Chiquito since 1984, since which time 221 holes (17,800 metres) have been drilled.
The company controls 15 concessions covering 194 sq. km in the historic Arenal-Fortuna district.
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