Manhattan enhances Tambo Grande (August 02, 1999)

Preliminary drilling suggests the TG-3 anomaly on the Tambo Grande project in northern Peru could yield a deposit as large as the nearby TG-1, reports operator Manhattan Minerals (MAN-T).

All but one of the 12 holes for which assays are available encountered massive sulphide mineralization, with thicknesses ranging up to 311 metres. To date, 25 holes have been drilled on the TG-3 anomaly, which has a strike length of more than 1,000 metres and a width of 300-400 metres. This latest drilling has tested 850 metres of strike length and 350 metres of width.

Manhattan is earning a 75% interest in the project, 50 km from the Ecuadoran border and 107 km from the sea port of Paita. The remaining interest is held by state-owned Minero Peru.

TG-3 is 700 metres south of the TG-1 deposit. Based on 21 holes, past operator Bureau de recherches gologique et minires (BRGM) estimated TG-1 to contain a resource amenable to open-pit mining of 42.3 million tonnes grading 2.04% copper, 1.47% zinc and 0.36% lead, plus 37.6 grams silver per tonne.

The resource, defined in a 700-by-350-metre gravity anomaly, is contained within a larger 150-million-tonne pyritic body. Manhattan has added 41 of its own holes to those drilled by BRGM, identifying a significant gold component in the overlying oxide cap and a portion of the sulphides.

The town of Tambogrande overlies a portion of the TG-1 deposit, whereas the Piura River meanders over part of the TG-3 anomaly.

Like TG-1, TG-3 is a volcanic-hosted polymetallic massive sulphide deposit consisting of a large pyritic, stratigraphic mound, identified by holes 4 and 5 in the south and hole 3 in the north. The target is surrounded by copper-zinc mineralization, the grade of which increases with distance from the core, as evidenced in holes 6 through 12. There are distinct higher-grade zones and lenses within the overall body, specifically a copper-zinc-gold zone at the hangingwall and a copper-gold zone at the footwall.

On the anomaly’s northeastern margin, hole 3 intersected 99.5 metres (true width) grading 0.97% copper, 0.63% lead and 0.08% lead, plus 0.44 gram gold and 13.4 grams silver between 155.1 and 254.6 metres. The upper 14.9 metres of the interval averaged 0.97% copper, 3.29% zinc and 0.36% lead, plus 1.05 grams gold and 55.5 grams silver. The bottom 11.6 metres yielded 2.76% copper, 0.03% zinc, 0.06 gram gold and 3.4 grams silver.

Stepout hole 6, situated 70 metres north of hole 3, encountered 61.3 metres grading 1.01% copper, 1.01% zinc and 0.08% lead, plus 0.47 gram gold and 13.4 grams silver between 150.7 and 212 metres. The upper 25 metres averaged 0.7% copper, 2.13% zinc and 0.15% lead, plus 0.75 gram gold and 20.8 grams silver. The bottom 15 metres averaged 2.11% copper, 0.18% zinc and 0.01% lead, plus 0.13 gram gold and 7.6 grams silver.

A further 70 metres north, hole 8 intersected 14.2 metres grading 1.44% copper, 4.1% zinc and 0.11% lead, plus 0.74 gram gold and 53.1 grams silver between 149.6 and 163.8 metres. The hole returned 46 metres grading 0.66% copper, 0.61% zinc and 0.05% lead, plus 0.45 gram gold and 11.3 grams silver, between 182 and 228 metres.

Hole 10, about 70 metres north of hole 8, pulled 40.7 metres averaging 0.43% copper, 4.38% zinc and 0.22% lead, plus 1.23 grams gold and 52.1 grams silver between 171.3 to 212 metres.

Hole 12, collared 70 metres to the east between holes 6 and 8, hit 95.7 metres averaging 0.76% copper, 1.25% zinc and 0.07% lead, plus 0.38 gram gold and 20.2 grams silver between 150.3 and 246 metres. An upper 13-metre interval graded of 1.14% copper, 4.53% zinc and 0.25% lead, plus 0.66 gram gold and 54.7 grams silver.

Hole 4, drilled in the southern portion of the TG-3 anomaly, intersected 215.8 metres averaging 0.47% copper, 0.45% zinc and 0.04% lead, plus 0.61 gram gold and 9 grams silver between 178.4 and 394.2 metres. The upper 6.6 metres averaged 0.78% copper, 1.12% zinc and 0.26% lead, plus 0.82 gram gold and 18.4 grams silver. Near the bottom, 12.2 metres averaged 0.89% copper, 1.14% zinc and 0.04% lead, plus 0.92 gram gold and 34.4 grams silver.

Hole 9, nearly 70 metres southwest of hole 4, encountered four consecutive intervals of mineralization, including: an upper 46.9 metres grading 0.89% copper, 1.27% zinc and 0.13% lead, plus 1.07 grams gold and 30.8 grams silver between 153.3 and 200.2 metres; 12.3 metres of 1.48% copper, 4.6% zinc and 0.42% lead, plus 1.71 grams gold and 80.4 grams silver between 206.4 and 218.7 metres; 46 metres grading 0.94% copper, 0.84% zinc and 0.05% lead, plus 0.88 gram gold and 27.3 grams silver between 307 and 353 metres; and a lower 17 metres grading 0.78% copper, 2.22% zinc and 0.07% lead, plus 0.91 gram gold and 30.9 grams silver from 362 to 379 metres.

Stepping out 70 metres to the northeast of hole 4, hole 7 intersected 42.5 metres averaging 1.88% copper, 2.29% zinc and 0.15% lead, plus 1.3 grams gold and 46.2 grams silver between 197 and 239.5 metres, followed by 15.7 metres of 0.93% copper, 1.16% zinc and 0.12% lead, plus 0.94 gram gold and 31.2 grams silver between 312.5 and 328.2 metres.

Hole 11, 70 metres northeast of hole 7, intersected 9.2 metres grading 1.55% copper, 1.45% zinc and 0.13% lead, plus 1.15 grams gold and 38.5 grams silver between 214.3 and 223.5 metres.

The company has three rigs on-site, and drilling to define the mineralization at TG-3 continues. The TG-6 and TG-7 gravity anomalies will be drilled in the next two weeks.

Manhattan currently has 28.7 million shares outstanding, or 33.3 million on a fully diluted basis.