Manhattan targets Candamena property for bulk-tonnage potential

With two drills on site, Manhattan Minerals (MAN-T) is attempting to prove up its Candamena gold-silver project in Mexico’s Chihuahua state.

The property lies 25 km southeast of Manhattan’s Moris mine, an open-pit, heap-leach operation.

Drilling to date has focused on an area of pervasive alteration associated with intersecting ring and radial fractures related to two rhyodacite intrusions in the southern margin of the Ocampo caldera.

A broad, low-level gold anomaly extends over a 760-by-640-metre area and covers a stratigraphic thickness of about 180 metres.

To date, 24 holes have been drilled, mostly low in the mineralized system.

The intrusives are mineralized with gold, silver and copper, whereas the overlying breccias and tuffs contain just gold and silver.

The first (previously reported) eight holes were widely-spaced along the base of the anomaly’s surface expression. Holes 96-9 to 19 tested the Joya zone to the west.

Significant results were encountered in: hole 9, which returned 111 metres grading 0.46 gram gold and 19 grams silver per tonne from a depth of 4-115 metres (including 33 metres of 0.8 gram gold and 23 grams silver) from 4 to 37 metres; hole 11, which returned 20 metres grading 0.7 gram gold and 7 grams silver, starting at surface; and hole 17, which returned 228 metres grading 0.66 gram gold and 5.4 grams silver (including 25 metres of 2.25 grams gold and 3.8 grams silver) from 148 to 376 metres.

The remaining holes intersected either lower-grade or anomalous mineralization.

At the Dolores zone, to the east, holes 20 to 24 were drilled as follow-ups to hole 3, which intersected 121 metres grading 0.75 gram gold and 39.2 grams silver (including 20 metres of 1.76 grams gold and 136 grams silver) low in the mineralized system.

Hole 20 was drilled 35 metres stratigraphically higher than hole 3, returning 195 metres of 0.9 gram gold and 36 grams silver (including 22 metres of 3.1 grams gold and 57.5 grams silver) from 31 to 226 metres.

Results for holes 21-24 are pending.

Tambo Grande

In related news, Bureau de Recherches Gologiques et Minieres (BRGM), an agency of the French government, has transferred its interest, rights and obligations in the Tambo Grande massive sulphide project to its subsidiary, BRGM S.A. Manhattan and BRGM S.A. intend to incorporate a Peruvian operating company, which will hold a 100% interest in Tambo Grande. Manhattan will have the right to acquire a minimum 50.05% interest in the Peruvian company from BRGM S.A.

Situated in northern Peru, Tambo Grande is host to Kuroko-style mineralization, with a near-surface resource outlined at 42.3 million tonnes grading 2.06% copper and 1.47% zinc, plus 30 grams silver per tonne.

Preliminary sample checks indicate the potential for gold. Three geophysical anomalies require drill testing.

Next door, at Manhattan’s wholly owned Lancones property, which adjoins Tambo Grande, the company will carry out ground geophysical work on potential massive sulphide targets outlined by an airborne survey.

To fund activities in Peru and Mexico, the company has entered into a $36-million financing with a group of investment dealers led by First Marathon Securities. Manhattan will sell 4 million special warrants at $9 each, with an option for an additional 500,000 special warrants. Each special warrant is convertible into one common share, or, in certain circumstances, 1.07 shares.