Aquiline tests Calcatreu depth potential

Drilling by Aquiline Resources (AQI-V) has cut a 5-metre interval (beginning 238 metres below surface) grading 15.2 grams gold per tonne at depth on the Calcatreu gold-silver project in Argentina’s Rio Negro province.

The hole, no. 259, tested the Vein 49 zone, and is the deepest hole on the project so far. The company says the hole demonstrates the potential for high-grade mineralization to continue at depth. Most of Aquiline’s previous drilling (some 174,000 metres in more than 170 holes) has been focussed on discovering and defining near-surface open-pit resources.

Aquiline is awaiting assay results for three other holes sunk at depth on the northern portion of the Vein 49 zone; the company plans another four holes designed to test 75 metres below those holes, or at an overall depth of 350 metres.

Encouraged by the latest result, Aquiline re-released some previously drilled deep holes, based on a higher cutoff grade of 3 grams gold. The six holes generally grade 5-11 grams gold and 20-183 grams silver over widths from 1-5 metres.

Aquiline says the review of previous drilling has defined a continuous, high-grade vein system at depth. The company says the veins appear increase in grade with depth, and are particularly rich in silver.

Based on the encouraging results, Aquiline has decided to amend the ongoing scoping study at Calcatreu to include a look at the potential of a combined open-pit/underground mining operation. The study is being prepared by Micon International, and is now due in September; it had previously been expected in mid-May. The study will also include a revised resource calculation for Calcatreu.

Aquiline says that work on permitting and all other aspects of advancing the project remain unaffected, and the delay is not expected to impact on the potential development schedule.

The latest deep hole is among the latest batch of 36 holes from Calcatreu; most of the holes were collared on the Nelson Vein system, south of the primary Vein 49 zone of mineralization. Aquiline envisages Nelson as a satellite open-pit operation to complement Vein 49.

Selected results form the Nelson system include:

• hole 224 1.8 metres (from 46.5 metres below surface) grading 3.5 grams gold and 167 grams silver;
• hole 231 6 metres (from 29 m) running 3.5 grams gold and 42grams silver;
• hole 239 5 metres (from 27m) of 5 grams gold and 38 grams silver;
• hole 245 2 metres (from 54 m) averaging 5.1 grams gold and 35 grams silver;
• hole 252 3 metres (from 16 m) grading 3.3 grams gold and 30 grams silver; and
• hole 257 12.2 metres (from 56 m) of 4.6 grams gold and 34 grams silver.

The remaining holes generally returned 1-5 grams gold and 4-36 grams silver over intervals measuring from 1 to 18 metres. Three of the holes failed to cut significant mineralization.

Shares in Aquiline were 12, or nearly 16%, higher at 88 in thin afternoon trading following the news on June 18.