Seafield grows Miraflores and market cap

Seafield Resources (SFF-V) released some long intercepts from its Miraflores deposit in Colombia and the market took notice.

The best assay returned 167.75 metres grading 1.05 grams gold, including 44.10 metres grading 2.94 grams gold. The company says the hole confirms the continuity of mineralization within the deposit at depth.

But that wasn’t the only strong result. A second hole, that was testing the breccia pipe at Miraflores to the southwest and outside of the current resource model returned161 metres grading 0.78 grams gold.

Seafield describes Miraflores’ mineralization as being characterized by a hydrothermal breccia pipe with free gold associated with cement materials and high grade structures where gold is associated with zinc, lead, copper and iron.

The breccia pipe has a drill-tested diameter of 250 metres by 280 metres at surface and widens and is open at depth. Drilling thus far has tested down to a vertical depth of 600 metres.

In May of last year the company released a resource estimate on the deposit that outlined measured and indicated resources of 24 million tonnes grading 0.9 grams gold for 1.2 million oz of gold and inferred resources of 12.3 million tonnes grading 0.9 grams gold for 354,512 total oz. of gold. Those numbers were generated using a cutoff grade of 0.3 grams gold per tonne.

That estimate was based on 22 diamond drill holes and 154 underground channel samples for 7,757 metres of drilling. Since then it has drilled another 7,485 metres in 13 diamond drill holes and it says those results will go into a resource update due out by the end of January.

The Miraflores deposit is part of the company’s 67.57-sq km Quinchia Gold Project which is in a historic artisinal mining district within the department of Risaralda.

The project sits on the Mid-Cauca gold belt, which also hosts AngloGold Ashanti’s (AU-N) 16 million oz. La Colosa deposit and Gran Colombia Gold’s (GCM-T) 12 million oz. Marmato deposit.

In Toronto on Jan. 25 the company’s shares were up 29% or 5¢ to 22¢ on 5.9 million shares traded. Its share price has fluctuated between 14¢ and 52¢ over the last 52 week period.

Seafield currently has 168.9 million shares outstanding and is sitting on roughly $13 million in cash.