Mar-West outlines gold find in Honduras

In just three short months, Vancouver-based Mar-West Resources (MSR-V) has outlined a minimum 750,000-oz. resource in the Sinter zone, an exciting new gold find at its San Martin concession in central Honduras.

The Sinter zone is a relatively young, well-preserved, high-level epithermal hot springs occurrence.

Of the 57 reverse-circulation drill holes reported to date, all have intersected near-surface, anomalous-to-ore-grade, flat-lying gold mineralization, which essentially blankets and parallels the topographic surface of a dome-shaped hill.

Drilling to date has tested a 700-by-600-metre portion of the hill, which measures a total of 900 metres in diameter and 170 metres in height. Based on results from the first 50 holes, the blanket-like zone averages a grade of 1.27 grams gold per tonne and a thickness of 19.8 metres. Robert Wasylyshyn, vice-president of exploration, said the deposit is fast-approaching 20 million tonnes.

“I think we can see 1 million oz., short of finding a feeder system,” Wasylyshyn told The Northern Miner during a visit to the Central American site.

The deposit remains open for expansion to the west, south and east. Holes in the northwestern part of the hill (FT-24, 25, 26 and 29) show the mineralized zone thins to 6 metres in this direction, with values ranging from 0.58 to 0.76 gram.

The most recently reported holes tested the southern perimeter of the zone, returning 35.1 metres averaging 1.04 grams in hole 56 and 9.2 metres averaging 0.59 gram in hole 57. The southeastern boundary was further extended by hole 53, which intersected 18.3 metres averaging 2.53 grams.

Mar-West owns an 80% interest in the San Martin concession, while Curion Ventures (CUV-V) holds a 20% working interest.

The find has not gone unnoticed by the majors and mid-tier producers. But with $4.5 million in its treasury, Mar-West is in no hurry to give up control of what could prove to be an emerging gold camp.

“We have to get a better handle on the property before making a deal,” explained President Simon Ridgway. “Prospecting in and around the San Martin concession is showing that there is a lot of smoke out there.” Mar-West has been engaged in the acquisition and exploration of mineral properties in Honduras for the past two years and recently expanded its exploration efforts into El Salvador and Guatemala.

The company holds 40 concessions, totalling more than 400,000 ha, in the Central American countries. In Honduras alone, Mar-West holds varying interests in 150,000 ha.

The San Martin property is a 2-hour drive from the capital city of Tegucigalpa, accessible by 80 km of paved road followed by 50 km of gravel road through the village of San Ignacio.

The forest-covered topography is moderate to rugged, with elevations ranging from a low of 650 metres to a high of 1,300 metres. The climate is described as subtropical, with a wet season running from June to October. The total annual rainfall averages 120 cm.

Hill structures

The 14,100-ha exploration concession covers an 18-km length of the Siria graben — a regional, northwest-trending fault block that has been the focus of geothermal and intrusive activity. A number of topographic dome-like silicified hill structures, related to hot springs activity, coincide with the projected intersection of the northwest-trending Siria graben and the east-west-striking Arenal fault.

The property is underlain by Paleozoic metasediments of the Cacaguapa schist, which are intruded and locally overlain by Tertiary-age porphyritic dacite and tonalite. Felsic tuffs and ignimbrite of the Miocene Padre Miguel Group are irregularly exposed.

Through its wholly owned Honduran subsidiary, Minerales Entre-Mares, Mar-West acquired the property by application in late 1995 on the basis of anomalous stream sediment samples.

The eastern part of the property had previously been explored for copper in 1983, and in 1991 Fisher-Watt tested the Palo Ralo area for its gold potential, drilling three holes in the valley and two in the hill.

Mar-West initially optioned Curion Ventures a half interest in the San Martin concession but later renegotiated that option to 20%.

To date, Mar-West has concentrated its efforts on Palo Ralo and the Sinter zone. Palo Ralo is a dome-like hill structure measuring 1,500 metres in diameter and 100 metres in height. Like the Sinter zone, it occurs along the east-west-trending Arenal fault (which can be traced along the entire length of the San Martin concession).

A soil geochemistry program in 1996 outlined several irregular, anomalous areas at Palo Ralo, with values ranging up to 1,240 parts per billion (ppb) gold.

Alteration zones

Mar-West and Curion completed five widely spaced holes in 1996, intersecting broad zones of alteration with sub-ore grade gold mineralization. Results included: 20.9 metres of 0.56 gram in hole 96-1; 16 metres of 0.65 gram, 31.5 metres of 0.73 gram and 3.3 metres of 5.39 grams in hole 96-2; 100.5 metres of 0.22 gram in hole 96-4; and 16.4 metres of 0.47 gram in hole 96-5.

Palo Ralo is a much larger, older hydrothermal system than the Sinter zone, and is underlain by pediment that is cut by fossiliferous silica zones.

Mar-West recently completed another six widely spaced drill holes into Palo Ralo. One of these tested an area where surface sampling returned plus 2 grams. Results of this drilling are pending.

The Sinter zone, 1.7 km east of Palo Ralo and on strike with the Arenal fault, attracted Mar-West’s attention last year, after road-building crews exposed intense hydrothermal alteration. Channel sampling along a fresh road cut averaged 1.49 grams over 50 metres. A further 800 metres to the west, similar anomalous alteration was encountered in a creek bed.

Follow-up soil geochemical sampling outlined a gold anomaly, with values of up to 1,526 ppb, coinciding with a good portion of the hill. Further channel sampling along road cuts yielded an impressive 105 metres averaging 1.62 grams.

In early May, after carrying out a limited program of mechanized trenching, Mar-West commenced a reverse-circulation drill program. By the time drilling was temporarily halted at the end of July, a total of 72 holes had been completed, including two twinned diamond drill holes

Hot spring vents

The Sinter zone consists of strongly argillic-altered schists and flat-lying quartz-chalcedonic veins underlain by unaltered pyritic schists. The zone is irregularly capped with anomalous siliceous sinter.

At the base of the hill, active sulphurous hot spring vents are precipitating siliceous sinter. Sampling in the immediate area of the vents has returned kicks of up to 0.5 gram gold, indicating the system is still depositing gold.

The alteration blanket is 40 metres thick, with a near-surface white zone of intense argillic alteration comprising between 10% and 15% of the deposit and a deeper, red zone of hematitic alteration.

Disseminated gold mineralization occurs within the alteration blanket and can sometimes take up the entire 40-metre zone. Gold values are cut off sharply at the underlying contact with the pyritic schist, though there is the occasional hit in the unaltered rock.

Wasylyshyn has attempted to locate the source of the gold mineralization.

Feeder zones tend to be richer in grade, with a greater depth potential.

Using a grade-thickness map, Wasylyshyn is able to show a good correlation between a thicker zone of stronger gold mineralization and the east-west-trending Arenal fault, and results from recent holes FT-58 and FT-60 confirmed this association. Hole 58 returned 35.1 metres averaging 2.23 grams, and hole 60 pulled 36.6 metres averaging 1.55 grams.

A technical audit to confirm the Sinter zone drill results was recently completed by the independent engineering firm MRDI. The California-based company twinned four holes, including two with a diamond drill rig. While the findings of the audit are expected to be released shortly, Ridgway said that there are no surprises, and confirmation was excellent.

Fluor Daniel Wright has been employed to do initial engineering scoping
studies. Preliminary metallurgical testwork performed by several interested mining companies indicated that the gold is amenable to heap leaching.

Recoveries ranged from 65% run-of-mine to 92% crushed.

Favorable topography

The rock is oxidized, with low mercury and no copper or arsenic.

Infrastructure is excellent, and topography works in the deposit’s favor. A flat valley, adjacent to the Sinter deposit, is ideal for a leach pad.

Because the deposit is right at surface and mirrors the topography, Ridgway described the stripping ratio as “basically cutting the grass.” Ridgway projects a preliminary operating cash cost of under US$175 per oz.

“It will be a very profitable mine,” he said.

Intent on sustaining its exploration initiative, Mar-West is keying in on structural intersections and looking for remnant chalcedonic sinter. A large grid is being established between the Sinter and Palo Ralo zones, and will be extended farther to the west, to a third domal structure identified as the Valley dome. Geophysical survey work will attempt to define target areas in preparation for deep drilling beneath the valley cover.

When drilling resumes in September, Mar-West intends to test the depth potential of the east-west-trending Arenal fault within the Sinter zone, stepping out towards the Palo Ralo prospect. The deepest hole to date is only 75 metres.

“Results from San Martin has made us focus on hot springs environments,” explained Ridgway. “We’re learning about structural controls on mineralization and using those ideas in El Salvador and Guatemala.” >From now to year-end, Mar-West intends to spend $1 million in Honduras, $500,000 in Guatemala and $350,000 in El Salvador.

Mar-West has 13.4 million shares outstanding, or 18 million fully diluted.

Drill results reported to date from the Sinter zone are shown below:

Hole	Dip	Interval(m)	Width(m)	Gold Grade(g/t)
01	-90	0.0-10.7	10.7	1.62
02	-90	0.0-19.8	19.8	1.35
03	-90	0.0-19.8	19.8	1.47
04	-90	7.4-47.2	19.8	0.92
05	-45	7.6-30.5	22.9	0.86
06	-55	0.0-21.3	21.3	1.73
07	-55	0.0-15.2	15.2	1.25
08	-55	0.0-18.3	18.3	1.54
09	-90	3.0-21.3	18.3	0.98
10	-90	3.0-24.4	21.4	0.80
11	-90	0.0-24.4	24.4	1.49
12	-90	0.0-33.5	33.5	4.77
13	-90	0.0-25.9	25.9	1.41
14	-55	21.3-38.1	16.8	2.53
15	-55	9.1-42.7	33.6	1.72
16	-55	7.6-36.6	29.0	1.21
17	-55	10.7-54.9	44.2	0.88
18	-55	3.0-33.5	30.5	1.28
19	-55	9.1-30.5	21.4	1.35
20	-55	4.6-25.9	21.3	0.64
21	-55	3.0-48.8	45.8	1.53
22	-55	15.2-22.9	7.7	0.79
23	-90	0.0-18.3	18.3	1.26
24	-60	1.5-18.3	16.8	0.67
25	-60	3.0-36.6	33.6	0.58
26	-60	15.2-35.1	19.9	0.76
27	-60	10.7-21.3	10.6	0.60
28	-60	13.7-50.3	36.6	1.01
29	-60	12.2-18.3	6.1	0.58
30	-60	9.1-22.9	13.7	0.66
31	-60	4.6-29.0	24.4	1.72
32	-60	6.1-25.9	19.8	0.68
33	-90	4.6-32.0	27.4	1.34
34	-60	15.2-35.1	19.9	1.10
35	-60	9.1-22.9	13.8	0.79
36	-60	3.0-22.9	19.9	2.07
37	-60	1.5-21.3	19.8	2.10
38	-60	6.1-24.4	18.3	0.99
39	-60	0.0-44.2	44.2	0.53
40	-60	.1-18.3	12.2	1.00
41	-60	1.5-25.9	24.4	0.81
42	-60	13.7-27.4	13.7	2.62
43	-60	13.7-25.9	12.2	0.65
44	-60	12.2-24.4	12.2	1.24
45	-55	16.8-33.5	16.7	2.27
46	-60	4.6-35.1	30.5	1.78
47	-60	3.0-47.2	45.7	1.45
incl.		3.0-25.9	22.9	1.95
48	-60	3.0-35.1	32.1	1.01
49	-60	6.1-38.1	32.0	1.31
50	-60	6.1-54.9	48.8	0.75
52	-60	3.0-16.8	13.8	1.19
53	-60	6.1-24.4	18.3	2.53
56	-60	0.0-35.1	35.1	1.04
57	-60	3.0-12.2	9.2	0.59
58	-60	0.0-35.1	35.1	2.23
incl.		0.0-24.4	24.4	2.81
59	-90	0.0-24.4	24.4	1.67
60	-60	6.1-42.7	36.6	1.55