Aquiline extends near-surface gold at Calcatreu

The latest batch of thirteen holes from Aquiline Resources‘ Calcatreu gold-silver project in Argentina, has extended a zone of high-grade mineralization to more than 700 metres.

The holes targeted the Vein 49 deposit, and were highlighted by hole 143, which returned 14 metres (from 11 metres below surface) grading 9.1 grams gold and 70 grams silver per tonne. Hole 146, collared 55 metres to the southeast, cut 7 metres (from 41 m) running 10.8 grams gold and 160 grams silver. The hole also returned 11 metres (from 21) of 1.1 grams gold and 12 grams silver. Another 30 metres to the east, hole yielded a 7-metres section (from 71 m) running 9.8 grams gold and 125 grams silver. A 5-metre interval higher in the hole (from 46 m) runs 2.1 grams gold and 27 grams silver.

The remaining holes generally returned between 1-5 grams gold and 10-60 grams silver over widths from 2-20 metres. Aquiline says true widths in the angled holes are about 90% of those reported.

Drilling at Calcatreu continues with a second rig added to focus on shallow drilling of the Nelson Vein system immediately on strike to the south of Vein 49. Drilling will also test targets outlined by recent induced polarization surveying along strike of Vein 49.

Since drilling began last November, Aquiline has sunk some 5,896 metres, nearly half the planned 12,000 metres planned for the initial four-stage drilling program. Based on the encouraging results so far, the company expects to expand its drilling campaign.

Aquiline recently raised $6.9 million via the private placement of 5.75 million units at $1.20 apiece. Each unit comprises one share plus half a warrant. A whole is good for one share at $1.65 per share for 18 months from closing.

As agents for the financing, Pacific International Securities, Dundee Securities and Toll Cross Securities were paid commissions totalling $375,335 in cash plus 89,722 units at $1.20 per unit. The agents also received brokers’ warrants to buy up to an additional 402,500 units at $1.25 apiece for 18 months. The brokers’ warrants include one share and half a warrant, with a full warrant exercisable into one share at $1.70 per share for 18 months. All of the securities are subject to a four-month hold period expiring June 7, 2003.