Energold proves up Dominican gold concession

Believing there is potential to double the current resource of 220,000 contained ounces, Energold Mining (EGD-V) has embarked on a minimum 50-hole drill program on the Higo gold concession in the Dominican Republic.

The program is focused on the Centenario deposit, which contains about 1.1 million tonnes grading 6.27 grams gold per tonne.

Higo is one of six concessions held (or applied for) by Minera Hispaniola, a Dominican company in which Energold can acquire a 100% interest.

Since October, Energold has completed 19 holes totalling 1,346 metres in the western and southern portions of the deposit, as well as 14 small-diameter holes comprising 349 metres in the periphery.

Initial results have proved encouraging. Hole HC-96-39 intersected 47 metres grading 4.67 grams between a depth of 26 and 73 metres (including 13 metres of 9.35 grams and 6 metres of 11.86 grams); hole HC-96-40 cut 30 metres of 2.51 grams (including a 14-metre interval grading 4.47 grams); and hole HC-96-41 intersected 41 metres grading 4.63 grams between a depth of 4 and 45 metres (including 9 metres of 8.2 grams and 6 metres of 11.87 grams).

Potential for expansion is indicated by hole HC-96-43, which tested the northern portion of the zone some 20-30 metres beyond its limits in an area previously believed to have been terminated by a fault. Beginning at a depth of 2 metres, the hole intersected 72.1 metres grading 3.58 grams (including a 20-metre interval grading 7.7 grams) and is believed to indicate a previously unrecognized northwest-trending structural control open along strike and to depth.

To test the structure’s potential, Energold will expand its drill program by at least 20 holes.

The southern boundary of Centenario was confirmed by holes HC-96-37, -38 and -42. Hole 37 intersected 8 metres of 1.76 grams; hole 38 returned 9 metres of 1.83 grams (plus 16 metres of 1.76 grams); and hole 42 cut 10 metres of 1.76 grams.

The western periphery was tested by drilling that returned 1 metre of 33.98 grams in hole HW-96-38 and 10 metres of 1.52 grams in hole HW-96-41.

An epithermal gold deposit, Centenario is hosted in steeply dipping quartz-barite veins and stockwork breccias. The company projects a stripping ratio of 1-to-1 for the shallow-lying deposit, and preliminary metallurgical tests indicate gold recoveries of 74% can be achieved by cyanide leaching.

Meanwhile, Energold is carrying out reconnaissance programs on several other concessions in the country, having already identified what it describes as “promising targets’ in the Ranchos Formation, which hosts the large Pueblo Viejo gold deposit.

The Vancouver-based company has 10.3 million shares outstanding, or 12.7 million fully diluted. Its largest shareholder, Eldorado Gold (ELD-T), has a 44% interest.