Vancouver — Having completed their merger, Dayton Mining and Pacific Rim Mining are preparing for a 7,000-metre drill program on the El Dorado gold project in El Salvador.
The combined entity, which retains the name
“The amalgamation has created an exploration and development company with a tremendous exploration asset, and ample working capital and future cash flow,” says President Catherine McLeod-Seltzer.
El Dorado is an epithermal gold project hosting 35 separate quartz veins which, combined, total 18 km in strike length. Historically, El Dorado has produced 78,000 oz. gold from the Minita vein system. The average grade was 9.6 grams per tonne. At last count, the indicated resource below the old workings amounted to 799,200 tonnes grading 13.7 grams gold and 97.9 grams silver.
The new drill program will initially test vein targets throughout the epithermal system.
In order to expand the existing resource, Pacific Rim has inked a deal to acquire the 35-sq.-km La Calera project, some 8 km to the west. The project hosts three principal gold-bearing veins. The best surface results came from the 1-metre-wide Santa Rosa vein; trench samples collected over a 500-metre strike length returned up to 30.8 grams gold.
Pacific Rim paid US$5,000 upon signing the La Calera deal and agreed to pony-up an additional US$15,000 after completing two months of due diligence. The junior must then spend US$375,000 on exploration and pay US$280,000 annually over four years. The owners retain a 0.5% net smelter return royalty, which Pacific Rim can purchase for US$200,000.
Says Chief Executive Officer Thomas Shrake: “We are intrigued by the exploration potential of the La Calera project, either as a stand-alone or as an add-on to El Dorado.”
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