One hole in the Breccia zone ended in mineralization after cutting 95.5 metres grading 0.49 gram gold and 19.5 grams silver per tonne. Included was a 65-metre interval of 0.6 gram gold and 24.2 grams silver.
Hole 77 cut 12 metres grading 0.09 gram gold and 74 grams silver per tonne at a down-hole depth of 105 metres; then, at 423 metres down-hole, it cut 16.5 metres grading 0.4 gram gold and 51 grams silver.
The highest silver grade, 181 grams per tonne, occurred in the Breccia zone at a down-hole depth of 129 metres and over a width of 6 metres.
Drilling in the East zone included a hole that graded 3 grams gold over 21 metres. A few others graded 1-1.2 grams gold-equivalent (gold plus silver) over 19-51 metres.
A total of 54 holes (8,500 metres) tested five zones, including at least 16 in the East zone, seven in the Breccia zone, four in between, seven between the East and Moyan Alto zones, and six in the area around the past-producing Shahuindo mine.
The property is underlain by sediments locally intruded by intermediate-to-felsic intrusive rock. The rocks are folded; mineralization commonly trends parallel to the anticline axis.
Four zones have seen most of the drilling: the Principal (or San Jose) zone occurs along the brecciated contact of sediments with a quartz feldspar porphyry; the East zone is hosted by sandstone; and the South zone geology is similar to that of the Principal zone.
In early March 2004, the Shahuindo project hosted an indicated resource of 25.8 million tonnes grading 1.07 grams gold (based on a cutoff of 0.3 gram gold per tonne) and 23.97 grams silver per tonne. There is also an inferred resource of 8.6 million tonnes grading 0.92 gram gold and 22.54 grams silver.
This drilling has extended the strike of the East zone by 1 km. In addition, 150 metres of strike length were added to the Breccia zone. A distance of 500 metres separates the two zones.
A new resource estimate, incorporating the new data, should be completed by the end of March.
A geochemical anomaly west of the San Jose zone with a strike length of at least 1 km has been trenched in one location, more than 400 metres west of the western-most drill hole. Continuous 5-metre-length samples resulted in 190 metres grading 1.6 grams gold and 18.6 grams silver per tonne. This zone will be tested further.
The Algamarca mine, a past producer which turned out 1.5 million tonnes grading 2% copper and 680 grams silver per tonne, is in the southwestern part of the property.
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