Vancouver — The results from a due diligence program have prompted
The 2,500-metre program tested for mineralization below the historical workings at the Lolon vein. At the same time, reconnaissance drilling was performed at the Challacollo Sur and San Francisco veins.
Collared at the northern end of the Lolon vein, nine of the holes defined a 600-metre-long section of high-grade silver mineralization. Highlights include the following:
– Hole 15 returned 350.9 gams silver per tonne over 8.6 metres at a down-hole depth of 128 metres;
– hole 16 cut 9 metres averaging 232.4 grams silver from 123 metres down-hole;
– hole 22 hit 15.8 metres grading 218.3 grams silver from 116 metres down-hole;
– hole 23 cut 290.4 grams silver over 11.5 metres at 37 metres down-hole;
– 800 metres farther southwest, hole 20 tested the Francisco vein and returned 1.4 metres grading 561 grams silver at 143 metres down-hole.
At last count, the Lolon vein held an indicated resource of 1.38 million tonnes grading 231.6 grams silver and an inferred resource of 4.7 million tonnes grading 244.2 grams silver. The latest drill results will be included in an updated resource calculation, which is expected later in the year.
Mineralization is hosted in rhyolites, dacites and andesites that are overlain by conglomerate, sandstone and shale. The property holds four structurally controlled north-south-striking veins that lie 100-200 metres apart and cover a length of more than 2 km.
Based on the drill results, Silver Standard has elected to proceed with its option to buy the project. Under the deal, the junior must pay US$1.5 million in staged payments to Sociedad Contractual Minera Challacollo (SCMC) over two years. The Chilean company retains a 2% net smelter return royalty on the property, which can be purchased for US$1.5 million
Challacollo lies 130 km southeast of Iquique at an elevation of 1,500 metres above sea level.
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