With drill results from a 55-hole reverse-circulation program in hand, Da Capo Resources (VSE) is working to recalculate the size of the resource for the Amayapampa project in Bolivia.
Da Capo is also incorporating results from core holes and channel samples from 145 underground crosscuts as it compiles the estimate.
The reverse-circulation work returned an average grade of 2 grams gold per tonne within the main mineralized area, while core holes, which were mostly drilled on the periphery of the zone, averaged less than 1 gram. Channel samples within crosscuts in the Main zone averaged almost 3 grams.
Gold mineralization at Amayapampa occurs both as free coarse grains and within pyrite in narrow-sheeted quartz veins and quartz-filled breccia.
Current underground development follows a swarm of parallel quartz veins in a zone about 50 metres wide, over a strike length of 600 metres and a vertical extent of more than 200 metres.
Ross Beaty, president of Da Capo, says the nuggety nature of the mineralization means that a great deal of sample data is required in order to determine a representative grade.
The company is carrying out a bulk-sample program, including 400-tonne blocks from three areas of the deposit, to provide additional gold grade and metallurgical data for a prefeasibility study.
Da Capo hopes to develop the property as an open pit with a centralized gravity-flotation mill. The mill could also be used to process material from the company’s Capa Circa project, 10 km to the south.
Results from metallurgical testing, as well as the new resource estimate, should be available in November. The company expects the prefeasibility to be completed in December.
At last report, Amayapampa contained a proven and probable geological resource of 4.1 million tonnes grading 3.3 grams gold.
Subject to completion of a positive prefeasibility, Da Capo expects to renegotiate its original agreement at Amayapampa to allow it to acquire a 100% interest.
As the deal stands, Da Capo can earn an initial 51% by forgiving a US$2.4-million loan that the company made to the vendors in late 1994. A further 19% can be purchased for US$3 million prior to March 1997.
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