Toronto-based Rayrock Yellowknife Resources, has just released a slew of results from drilling at the Bellavista sector of a joint venture gold project in Costa Rica.
The program is designed to prove up indicated reserves which stand at 6.9 million tons grading 0.10 oz gold per ton.
By spending $1.5 million on exploration, development and a feasibility study , Rayrock is currently earning 50% of Midland Energy Corp.’s (60%) interest in the Bellavista/Montezuma project.
Westlake Industries of Vancouver holds a 40% interest in the property which was held under option from Rembrandt Gold Mines. Until recently Rembrandt held a carried net profits interest. By first payback it could earn 10% of operating profits, 18% before second payback and 34% thereafter. But Rayrock’s exploration vice-president, David Hutton, says Westlake has recently bought Rembrandt’s interest.
After completing the first nine reverse circulation drill holes, Mr Hutton says drilling is continuing to establish reserves for a large tonnage of a low grade open pit operation.
Some of the best results from the Tebas, Atenas and Pochota Stockwork zones are as follows: Hole B-1 intersected a 131-ft section grading 0.10 oz. Hole B-3 intersected 39.4 ft of 0.129 oz including 65.6 ft of 0.094 oz. Hole B-7 intersected 39.4 ft of 0.116 oz while B-8 cut 13 ft of 0.146.
According to the company, results so far indicate that the stockwork-vein zones extend to depths of over 150-m (500 ft) and have widths of up to 40 m (130 ft). Average grades within the mineralized zone range from 0.06 to 0.09 oz gold per ton.
While grading is expected to remain at or below 0.1 oz, Mr Hutton says tonnage should increase substantially. “We are encountering extremely widespread mineralization,” he said.
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