Lyon Lake finds more gold in Costa Rica

Quebec-based Lyon Lake Mines (LLL-M) has received encouraging results from its final round of drilling at the Canamazo concession, on the western part of the Beta Vargas property in Costa Rica.

The results are from the last six holes of a 52-hole program initiated earlier this year. All six were drilled at the Guaitilar East and Sinter areas, two of four gold-bearing zones tested.

Two of the three holes drilled in the Guaitilar East area hit wide zones of low-grade gold mineralization, while only one of the three drilled at the Sinter zone intersected significant mineralization.

Highlights from Guaitilar East include: 10 metres (from 6 to 16 metres) grading 1.28 grams gold per tonne and 6 metres (from 42 to 48 metres) grading 1.39 grams in hole 97-47; and 10 metres (from 16 to 26 metres) grading 2.01 grams in hole 49.

>From the Sinter area, hole 52 yielded 0.81 gram over 4 metres.

Work to date at Guaitilar East has identified three gold-bearing structures over a 600-by-300-Metre area. According to Lyon Lake, all strike north-south, remain open along strike and at depth, and (based on drill results) have an average width of 15.1 metres.

Zone 3 returned the most encouraging results of the three, and also contained the highest-grading interval. Hole 97-5 intersected 1.58 grams over 36 metres (starting from surface), the first 10 metres of which graded 6.56 grams. In all, seven holes hit significant mineralization in the zone.

The widest interval was encountered in hole 97-7, which was drilled in Zone 2. That hole hit 58 metres (from 22 to 80 metres) averaging 0.59 gram. Three other holes drilled in the zone also returned significant results.

Significant results from drilling at Zone 1 come from hole 97-19, which intersected 34 metres (from 16 to 50 metres) averaging 1.47 grams, including 12 metres (from 20 to 32 metres) grading 2.6 grams.

The company is currently carrying out additional sampling and trenching in an attempt to extend the zones to the east. In the autumn, a new drill program will continue testing the prospect; Lyon Lake hopes that results from this effort will make it necessary to increase plant capacity at the company’s Beta Vargas open-pit heap-leach mine, 4 km to the southeast. The mine is currently in the preproduction stage.

The Sinter area, 2 km northwest of Guaitilar East, has so far been tested by three drill holes and six mechanical trenches spaced over 600 metres. The trenching work revealed a gold-bearing structure with an average width of 30 metres.

The zone is reported to be the same gold-bearing structure previously identified at the Castillo area, 2 km to the east. Lyon Lake believes the two may be continuous and will test this theory with further trenching work.

The company holds a 90% interest in the 39-sq.-km Beta Vargas property; a state-owned agency holds a 10% net profits interest.