Cata Preta drilling fuels trading in Black Swan Gold

The latest drill results from the Cata Preta property in Brazil’s Minas Gerais state have generated a flurry of trading activity in Black Swan Gold Mines (VSE).

The trading interest related to complete fire-assay results from drill-hole CP-121A, which included several, relatively narrow intercepts of uncut high-grade gold, as well as longer intercepts of lower-grade mineralization.

Black Swan says the results from this hole “continue to demonstrate the presence of widespread and locally bonanza-grade gold mineralization in an extensive, near-surface target horizon.”

The company says the hole averaged 11.85 grams gold per tonne (uncut) over 49.05 metres, with the true width being 43 metres. One small interval of the hole contained 580 grams gold. “Even if you take that out, the hole still averages about 5 grams, which is more than satisfactory for an open-pit deposit,” says President Arthur Fisher.

Two rigs are on site, continuing to test the target horizon and expand an earlier resource estimate of 1.4 million tonnes at 3.83 grams gold per tonne. The program is aimed at outlining a gold deposit minable by open-pit methods.

Fisher says the metallurgy should be straightforward, as the mineralization is free-milling. “Western Mining did some metallurgical work on this project in the early 1990s, before they pulled out of Brazil,” Fisher says, adding that those tests were positive and showed recoveries of more than 90%.

Black Swan has rights to earn a 50% interest in the property, as well as other properties in the country held by a Brazilian partner. To earn its interest, it must spend US$1 million on exploration (more than $600,000 has been spent), make minor cash payments, issue 8 million shares, and bring the project to the feasibility stage.

Gold mineralization at Cata Preta is described as being associated with swarms of quartz and quartz-tourmaline veins, locally carrying visible gold.

The veins are contained in a friable manganese-iron rich unit, referred to as “carvoeira.” The control of the mineralization appears to be close to a thrust plane between the upper carvoeira and underlying ferruginous quartzites.

Black Swan estimates that the potential target for the open-pittable, gold mineralized carvoeira “is in the order of 3 km on strike, and to an as yet unknown depth.”

To date, only 170 metres of this target zone have been drill-tested along strike, and to a maximum depth of only 130 metres.

Results from hole 21A are shown below, although Black Swan says the “true gold content of this intersection should be higher than reported,” as much of the gold is coarse-grained and the host rock is friable. (Some gold may have been lost in the drill-sludge and during sample preparation.) Intercept(m) Interval(m) Gold grade(g/t)

72.4-79.4 7.0 2.47

79.4-82.4 3.0 142.72

82.4-91.2 8.8 2.89

91.2-101.8 10.6 0.77

101.8-104 2.2 15.12

104-113.05 9.05 1.17

113.05-115.7 2.65 19.02

115.7-121.45 5.75 1.36