THE GLOBAL SEARCH FOR GOLD SPECIAL — SAGC beefing up Pimenton mine

Exploration and development of reserves at the Pimenton gold mine in Chile is progressing well, reports 56% owner South American Gold & Copper (SAG-T).

Comprising 2,660 ha, the property lies 215 km northeast of Santiago.

Two vein systems — the Lucho and the Maria Elena — are known to exist on the propspect, and both of these trend to the north.

The former consists of a series of six confirmed veins, with the possibility for several additional veins as a result of five drill-intersected structures. The system has been opened on five levels, from the 3600 to the 3430, and development work is advancing on the 3510, 3470 and 3430 levels.

Grades are averaging more than 20 grams gold per tonne and 1.5% copper over 0.77 metre. Geochemical surface soil samples indicate that the veins could extend 1,500 metres farther to the north. The gold-copper mineralization and accompanying alteration on the Lucho and Leyton veins continue to show increasing strength with depth.

Two stockwork structures running 4-8 metres wide and averaging 4-5 grams gold were encountered on the 3430 level, and both continue to show promise, SAGC reports. One of the structures correlates with two recently completed underground diamond drill holes, one of which encountered 8.95 metres grading 4.8 grams gold, while the other encountered 7.35 metres grading 5.75 grams gold.

Additional drilling on the stockwork in the Lucho area is planned.

Progress is also being made in driving a 140-metre crosscut east off the 3430 level at Lucho, the objective being to intersect five new structures identified by underground diamond drilling. A crosscut off the 3470 level will attempt to intersect these veins.

Diamond drilling off the 3470 and 3430 levels returned intercepts of 41.2 grams gold over 0.2 metre, 4.55 grams over 1 metre, 1.79 grams over 1.15 metres, 11.55 grams over 0.1 metre and 3 grams over 3.5 metres.

The other major vein system, Maria Elena, is 1,200 metres south of the Lucho system. The Maria Elena vein has been opened from the 3367 level down to the 3185 level. Exploration development headings into the mountain are now open on five levels. On the newly opened 3185 level, the Maria Elena vein has assayed 43.8 grams gold, 348 grams silver and 10.8% copper over 0.5 metre.

The 3355 and 3330 levels, opened last year, have been driven nearly 300 metres in total, with faces at both levels open to mineralization grading in the range of 30 grams gold, 30-45 grams silver and 1-2% copper over 0.3 metre.

SAGC has calculated the potential resource of the veins at Pimenton to be more than 900,000 oz. gold contained in 1.8 million tonnes. (This does not include the property’s stockwork potential.)