Monarch spreads its wings in Venezuela

Favorable drill results have enabled Monarch Resources (TSE) to increase gold reserves at its Camorra mine and Canaima concession in the Venezuelan district of El Dorado.

At La Camorra, results have been received from the first nine holes of a 40-hole program designed to test the orebody to a depth of 500 metres. These range from a low of 2.6 grams per tonne over a minimum mining width of 1 metre in hole SL-103, to a high of 247.36 grams over a minimum width of 1 metre in SL-96.

Based on results from these holes and from underground development, reserves have risen by 38%, to 553,000 from 400,000 oz.

The deep drilling program also confirmed the existence of a previously drilled hangingwall vein and led to the discovery of a second vein structure. These zones are named the Vicky and Betzy veins, respectively, and a separate program will evaluate them further.

On the Canaima concession, 6 km east of La Camorra, initial results are in from an 11-hole program on the Main Vein system. Results vary from a low of 2.78 grams over 0.94 metre in hole SC-52 to a high of 13.85 grams over 9.52 metres in SC-53.

The latest results, coupled with those of an earlier, 17-hole program, have led to an 88% increase in reserves, to 433,000 from 230,000 oz. The Canaima deposit remains open at depth and along strike to the west. Additional work is planned, including deep drilling and underground drifting. In other news, Monarch’s Mexican subsidiary has signed a letter of intent to acquire two gold properties belonging to Exploraciones Del Altiplano S.A. de C.V.

One property, the Sabinas concession, comprises 431 hectares and is situated 170 km north of Durango (only 20 km northeast of Monarch’s Rodeo property). Sabinas is believed to be the high-level expression of an epithermal vein system which exhibits intense hangingwall silica replacement and quartz veining over a width of at least 500 metres. Gold values of up to 2.15 grams have been identified through rock chip sampling.

The second concession, La Virgen, covers 1,003 hectares and lies within the prolific Zacatecas mining district. Preliminary diamond drilling by Altiplano has confirmed the existence of narrow, bonanza-style gold mineralization in a zone known as the Escuadra vein.

Elsewhere on its Rodeo concession, Monarch has identified six targets from which rock chip samples have yielded values of up to 3.22 grams gold and 18.7 grams silver. Exploration is ongoing.