Chesbar set to drill at Anacoco gold concession

A $2-million exploration program is set to begin on the gold properties held by Chesbar Resources (CBI-M) in Venezuela’s Bolivar state.

Once permits are in place, the junior plans to follow up previous results from three gold zones in a 95-sq.-km land package in the Anacoco area.

The drilling will be financed by Barrick Gold (ABX-T) under an agreement that allows that company to buy $2 million worth of Chesbar shares at $1.50 per share and a further $3 million worth at the market price or $1.50, whichever is greater. Chesbar traded recently at $2.25 per share.

Surface sampling has outlined three areas of shallow gold mineralization, each of which is 1,000-1,500 metres long and 300-800 metres wide. At the South zone, trenching returned widths of up to 71 metres grading 2.3 grams gold per tonne, whereas subsequent drilling yielded up to 32 metres grading 7.2 grams. Trenching results from the Central zone ranged from 0.66 gram over 12 metres in the west to 2.02 grams over 48 metres in the east.

A geophysical survey has outlined an induced-polarization anomaly stretching 1 km south of the South zone. To the north, the gold-bearing zone continues for another kilometre. The anomaly is open in both directions.

Chesbar will manage the exploration program until $5 million has been spent, at which point Barrick can elect to finance a feasibility study. On completion of the study, Barrick will be entitled to a 60% interest in the properties.