Hot junior
Ownership of the Veladero lease, which comprises 13,000 ha in the Argentine extension of the El Indio gold belt, is split 60-40 between AG and
Drilling has been targeting the Amable target on the southeastern flank of the Cerro Pelado diatreme, about 2.5 km southeast of the Filo Federico diatreme and the NW target.
Recent highlights include hole 92, which intersected 105 metres averaging 7.67 grams gold and 52.5 grams silver per tonne starting at a down-hole depth of 94 metres. At a depth of 231 metres down-hole, the hole cut 47 metres grading 0.3 gram gold and 18.25 grams silver.
Hole 92 was collared 50 metres east of the mineralized zone between previously reported holes 76 (193 metres of 1.49 grams gold and 55.09 grams silver) and 80 (212 metres of 3.67 grams gold and 47.71 grams silver).
Logging identified alteration patterns similar to those detected from other drill holes in the area. Hole 92 intersected silicification to a depth of 185 metres, which then graded into argillic alteration at depth.
No less exciting are results from hole 93, which was collared 50 metres east of hole 80 and intersected 119 metres averaging 1.39 grams gold and 20.59 grams silver starting at a down-hole depth of 101 metres. Included in this interval were 46 metres of 2 grams gold and 21.3 grams silver starting at a down-hole depth of 103 metres.
Hole 93 cut a zone of silica-alunite and alunite-jarosite, which AG believes represents a structure formed by the intersection of northeasterly and northwesterly trending fracture systems. Some of these fractures might offset mineralized zones vertically.
Further drilling will test areas east, north and south of this location. Both holes 92 and 93 were drilled due west at an angle of minus 70.
The latest results would seem to indicate that mineralization is continuous in the sector intersected by holes 76, 80 and 92. What’s more, holes 92 and 93 have extended mineralization 50 metres to the east. Gold mineralization at the Amable target has now been outlined over a north-southerly extent of 440 metres and an east-westerly extent of 250 metres.
The company collared hole 91 on the eastern side of the Filo Federico target, about 330 metres southwest of previously reported hole 63 (0.79 gram gold and 50.2 grams silver over 34 metres). Hole 91 cut 64 metres grading 0.84 gram gold and 2 grams silver starting at a down-hole depth of 189 metres.
Gold anomalies within the hole hit peaks of up to 19 grams but were associated with thin, scattered zones structurally controlled alteration. The alteration was described as a sugary-type of silica, hosted in phreatic breccias.
The hole intersected what AG describes as “border and basement” breccias in the first 135 metres, and these in turn grade into phreatic and border breccias similar to those seen at Filo Federico.
AG’s geologists report that the gold mineralization accompanies alunite and silica-rich zones which exhibit lower-resistivity geophysical anomalies than what was previously targeted. As a result, the exploration area has been enlarged, AG states.
Meanwhile, AG has completed hole 94, which was collared 200 metres north of hole 93, and hole 95, which was collared 330 metres northeast of hole 79. Assays from both holes are pending, with hole 95 representing the first test for possible mineralization between Filo Federico and the Amable target.
The company has a diamond drill rig on site and the first hole is under way; it has been collared northeast of hole 90 and is being drilled toward the west at minus 50.
An additional reverse-circulation rig is being mobilized. To date, the junior has drilled 5,300 metres of reverse-circulation work since September. Another 700 metres are planned.
Be the first to comment on "AG extends mineralization at Veladero"