LATIN AMERICA — CaribGold aims to upgrade resource at Jacinto

Another round of drilling is under way at the Jacinto gold property near Camaguey, Cuba, a joint venture between CaribGold Resources (CG-T) and a state-owned mining company.

The work is aimed at expanding and upgrading an uncut and undiluted resource of 2.3 million tonnes grading 5.83 grams gold per tonne contained within several quartz veins. CaribGold calculated this resource late last year following the completion of 5,600 metres of drilling.

Of this total, a diluted and cut resource of 1.6 million tonnes of 3.98 grams gold is within a preliminary open-pit outline being used for preliminary economic evaluation and to guide exploration.

CaribGold recently completed 2,200 metres of drilling to further test the main mineralized veins on the property. This work included 17 holes at El Limon and 10 holes at Beatriz. The Toronto-based junior has since begun drilling a further 2,000 metres at El Limon, where mineralization remains open at depth and along a strike length of 250 metres.

Of the 17 holes completed at El Limon earlier this year, some were infill while others deepened the vein vertically to 80 metres (or 120 metres downdip). Highlights (all true widths) include: 5.97 metres of 5.89 grams; 8.27 metres of 29.13 grams; 10.1 metres of 16.43 grams; 4.45 metres of 8.69 grams; and 16.3 metres of 6.18 grams.

The current program will explore the vein to a vertical depth of 100 metres or deeper, depending on results. Some of the holes will test for ore shoots along the Limon structure, which has been traced on surface for 500 metres to the west of known mineralization.

The 10 holes at Beatriz were drilled to ensure continuity of the mineralization and did not increase its size. Highlights (all true widths) include: 16.4 metres of 8.14 grams (starting at 50.5 metres down-hole); 2 metres of 37.91 grams (starting at 32.6 metres down-hole); and 2.89 metres of 31.10 grams (starting at 42 metres down-hole). Although two of the holes returned no significant values, some returned narrower intervals of lower-grade mineralization in the range of 1-4 grams.

Metallurgical work is under way at Jacinto to determine the leachability of the gold mineralization. CaribGold notes that the high-grade assays obtained from the property are caused by evenly distributed, fine-grained disseminated gold particles rather than nuggetty gold, which could produce inconsistent values. This also bodes well for amenability to leaching.

After the April drill program is complete, a new resource will be calculated and reported, along with the results from the leaching tests.