The first results from a recent discovery in Uruguay had B2Gold (BTO-T) shares climbing the charts on Tuesday.
B2 shares shot up 9% or 30¢ to $3.61 on 3.52 million shares traded after releasing assays from the country not typically known for hosting large gold deposits.
The results came out of two separate zones on the Cebollati property: Windmill and Southern.
Highlights from the Windmill zone included 24.9 metres grading 1.47 grams gold and 24.45 metres grading 1.36 grams gold. The best intercepts from the Southern zone were 27.35 metres grading 1.21 grams gold and 25 metres grading 3.06 grams gold.
Those results represent uncut values.
Beyond the solid width and grades, the property also benefits from having, what would appear to be, a significant amount of mineralization in an oxidized zone. Drilling thus far points to oxidation extending to a depth of 150 metres.
And the zone could have good horizontal reach as well, as surface mapping and high grade trenching indicates a mineralized structure that could extend over 2.2 km.
Mineralization at Cebollati is hosted by marbles and dolomitized marbles within a broad antiformal structure and is comprised of iron oxide replacement zones and related quartz-sulphide and sulphide veins.
While it is early, the company is describing the system as gold bearing replacement style mineralization at depth within multiple zones. It says that both galena and covellite are common accessory minerals along with the oxides scorodite and malachite. Supergene gold was observed in many of the holes to a depth of more than 100 metres down hole.
B2Gold can earn an 80% interest in the property by paying US$1 million and funding exploration through feasibility.
So far the company has finished drilling 19 holes, 14 of which have had assays returned.
Trenching and drilling is continuing at the property with two core rigs presently turning.
B2 has budgeted US$4.5 million of expenditures on the property for the year, which should get 8,500 metres of drilling done.
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