BASE METALS — Redex Gold puts its eggs in Bolivian basket

It was partly the mineral riches of Bolivia that drew the conquistadores to South America almost five centuries ago, and the country’s mineral potential continues to prove attractive. Among the exploration companies currently intent on developing assets in the country is Vancouver-based Redex Gold (REX-V).

In the past two months, Redex has acquired a partially developed open-pit gold mine and an 11,020-ha mineral concession. It has also entered into a contract to take over a local company that holds interests in 12 other concessions covering 19,221 ha.

The company, formerly known as Consolidated Redding Exploration, now holds a total of 35 properties in Bolivia, comprising more than 100,000 ha. Of these, 18 are wholly owned, the remainder being held under earn-in agreements. All are under active exploration.

(Redex is also active in neighboring Peru and has retained geological consultants in Lima to assess mineral properties there.)

Chief among its Bolivian properties is the open-pit Iroco mine in the western department of Oruro. Positioned 3,700 metres above sea level and comprising 605 ha in concessions, the mine currently operates on a small scale.

The mine has a drill indicated reserve of 12.5 million tonnes grading 1.3 grams gold, or 520,000 contained ounces, and Redex plans to define more reserves by carrying out diamond drilling.

“Iroco is the major target of ours right now,” company spokesman Steven Cozine tells The Northern Miner. “We’re planning to do work on the ground, and we’re also entertaining joint-Venture proposals. We’re looking for a partner with major exploration experience in Bolivia.”

To co-ordinate Bolivian activities, Redex’s chairman and chief executive officer, Charles (Scottie) Bruce, opened an office in La Paz in February.

.SHistoric production

Iroco forms part of a district of polymetallic mineralization related to the San Jose volcanic complex. The district has produced silver and tin since pre-Colonial times.

Geologically, the area is composed of sedimentary rocks of Silurian and Devonian ages, consisting of graywacke. There is a low degree of metamorphism and deformation as a result of folding.

Redex has also entered into an option agreement to acquire the Joya concession, comprising 11,020 ha in the Precambrian Shield of eastern Bolivia. Joya is adjacent to the Llallagua I and II concessions, both of which the company has under option to Anthian Resources (ANR-V).

Anthian can earn up to a 70% interest in the properties by spending up to US$3 million over three years. Anthian has committed to an initial US$125,000 expenditure, to be completed before June 30.

Redex is earning a half interest in Joya from Takla Star Resources (TKR-A) of Edmonton, Alta. In return, Redex must spend US$75,000 on exploration and development before Aug. 31.

Mineralization at Joya is known to occur in schists and shear zones.

Enhancement of the available aeromagnetic data, using filtering and shadowing techniques, shows that the southeast-Trending Don Mario lineament passes through the centre of the concession.

The major fault zone is demagnetized over most of its length. There are two clearly defined targets on the property, where the lineament is intersected by northeast-Trending structures. Redex plans to begin an exploration program there immediately.

Meanwhile, at the Red 2 property, a 4-line-km induced-polarization survey will begin in June, followed by 300 metres of drilling. Drill results will be available early in the fourth quarter, followed by further drilling as indicated.

.SAdvanced work

“We did some drilling at Red 2 in March, and had three holes that were good enough to warrant more advanced geophysics,” Cozine says.

On the Llallagua properties, company geologists will be interpreting aeromagnetic data, and will follow with further geology and soil sampling.

After results are evaluated, trenching targets will be selected.

Mapping on Red 5 indicates veinlets and disseminated chalcopyrite in dacite dykes in the southwestern corner. Chip samples over 5 metres gave values of 37 grams gold per tonne, 232 grams silver and 3.7% copper. Because of the location of the find, the concession area was immediately increased by 400 ha through staking of a new concession called Red 5-A.