Pacific Rim bullish on Luicho

A further 525 cliff-face samples taken by Pacific Rim Mining (PFG-T) from the Luicho project in Peru are confirming the continuity of gold mineralization at the Luicho prospect.

The prospect, an epithermal stockwork system in silicified sandstone, is being sampled to outline target areas for later drilling. The current campaign of sampling on cliff faces complements earlier surface and tunnel sampling in the area of the Luicho sturctural corridor, a fracture zone 1,850 metres long by 250 metres wide.

Among the better results obtained by Pacific Rim in the most recent round of sampling were a 5-metre vertical chip-channel sample that graded an average of 19.58 grams gold per tonne, a 6-metre sample grading 8.74 grams, and an 11-metre sample grading 8.2 grams.

In May, Pacific Rim released results of its sampling program, which included channel sampling in existing workings and on cliff faces. The program showed average gold grades of 1.33 grams per tonne on the Northeast zone, 3.07 grams on the Central zone, and 1.29 grams on the South zone.

The new sampling brings the averages down to 2.92 grams in the Central zone and 1.15 grams in the South zone.

A 12,000-metre program of reverse-circulation drilling is expected to start in early July. A further 8,000 metres of drilling are planned, and the company is seeking approval from Peruvian regulators on an environmental assessment report covering a third phase of drilling.

Pacific Rim has an option — dealt to it by a private Peruvian company — to earn a 100% interest in the property, about 540 km southeast of Lima in the department of Ayacucho. The Peruvian company retains net smelter returns on production from the property — 2.5% to 3.5% on the first million ounces of gold, varying according to price; and 3% on any production in excess of 1 million oz. There are cash payments (to a total of US$25.6 million) payable on the first three anniversaries of the project’s legal transfer, which was last Nov. 25.

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