Laguna works Costa Rican project

The first phase of drilling has been completed at the Rio Chiquito gold project in Costa Rica, and a feasibility study is in the works.

Laguna Gold, a division of Mallon Resources (NASDAQ), estimates the deposit contains 400,000 oz. gold and 2.5 million oz. silver.

A second phase of drilling, already under way, is aimed at extending the known deposit, which is open at depth and to the south. The first stepout hole to the south (25 metres beyond the known limit of mineralization) encountered 23 metres grading 2.7 grams gold per ton.

Metallurgical tests returned a 92% recovery rate when the material was ground to 72 microns.

The company has expanded its holdings in Costa Rica to 254 from 183 sq. km. These holdings are divided into two large blocks within the Arenal-Fortuna gold district in the north-central part of the country.