Dorato hits more high grade at Cordillera Del Condor

Vancouver – The first drill program ever conducted at the Cordillera del Condor project in northwest Peru continues to return high-grade gold intercepts for Dorato Resources (DRI-V).

Dorato has completed 25 holes at the Taricori target area. Results are available for the first 17, which were all drilled from three platforms spaced roughly 100 metres apart in an east-west line running down a steep hill.

The gold grade seems to improve as the drills march eastward. The latest four holes, drilled from the easternmost platform, returned several high-grade hits. Hole 14 returned 3.1 metres of 4.37 grams gold per tonne and 17.55 grams silver per tonne from 13 metres depth, followed closely by 4.5 metres of 1.02 grams gold and 13.5 grams silver.

Next, hole 15 cut 10.2 metres grading 4.63 grams gold and 12.93 grams silver from 13 metres downhole, followed by five intercepts each almost 2 metres long grading between 1 and 2 grams gold and 11 and 33 grams silver. Then hole 16 intercepted 8.8 metres of 1.19 grams gold and 23.27 grams silver from 20 metres depth, followed by three shorter intercepts including 6.3 metres averaging 22.67 grams gold, 65.71 grams silver, and 1.28% zinc.

The final hole from platform 3 cut 15.3 metres grading 2.51 grams gold and 22.37 grams silver, followed by 1.3 metres of 3.28 grams gold and 24.8 grams silver and 3.5 metres of 1.19 grams gold and 15.2 grams silver, all above 52 metres depth.

Earlier, two other holes drilled from platform 3 returned impressive intercepts. Hole 12 cut 18 metres grading 41.58 grams gold and 46.9 grams silver from 16 metres depth, while hole 13 returned 38.9 metres carrying 7.05 grams gold and 48.4 grams silver.

The best intercepts from the holes drilled at platforms 1 and 2 include 12 metres of 4.58 grams gold and 2.1 grams silver, 32 metres of 1.03 grams gold and 4.3 grams silver, 16.7 metres of 1.89 grams gold and 57.9 grams silver, and 8.7 metres grading 3.29 grams gold and 61 grams silver.

The next eight holes, for which results are pending, were drilled from two new platforms, each another 100-metre step to the east. Results received to date have traced the Taricori zone along 250 metres east-west strike and to 100 metres depth, but it remains open to the east and at depth. Underground artisanal workings in the area show mineralization reaching at least 200 metres depth and the prospective contact has been traced for 3 km on surface.

The Cordillera Del Condor geologic belt stretches across and along the border between Ecuador and Peru. On the Ecuadorian side, 20 years of modern exploration have identified 22 million oz. gold in several world-class deposits. The 13.6-million oz Fruta del Norte deposit, owned by Kinross Gold (K-T, KGC-N), anchors the discoveries. Some 30 km to the north Corriente Resources (CTQ-T) discovered the Mirador and Mirador Norte deposits, which together host 4.5 million oz. gold and 11 billion lbs. copper; Corriente was recently acquired by CRCC-Tongguan Investment. And Dynasty Metals and Mining‘s (DMM-T) Jerusalem deposit, home to a newly-built mine tapping into a 1.3-million oz. deposit, is just 600 metres away from Taricori.

On the Peruvian side, however, exploration has been very limited until now because of a lengthy conflict between Peru and Ecuador that resulted in a no-go zone along the border. That zone was recently opened up, allowing Dorato to stake the southern extension to the fault that hosts Fruta del Norte and Mirador.

Along that major north-south fault, deposits are generally located where the fault crosses an east-west structure, which is what occurs at Taricori. The same east-west structure also created Dynasty’s Jerusalem deposit.

And Dorato recently expanded its land package in the Cordillera Del Condor significantly, with a deal to earn full ownership of another 140 sq. km of mineral rights for $200,000 and 1 million shares. The new lands bring Dorato’s ground position to 950 sq. km; the company says it has “locked up” the prospective corridor and 75% of the ground has never been explored.

The company has already identified two other promising areas. Lucero, which sits roughly 7 km southeast of Taricori, is a bulk-tonnage porphyry target discovered through the coincidence of geophysics and prospecting. A trench at Lucero returned 25 metres averaging better than 3 grams gold. Dorato is working to obtain drilling permits for the area.

And at Cobrecon, some 20 km south of Taricori, rock and soil samples have identified a 29-sq. km area grading better than 500 ppm or 0.05% copper. The best rock samples have returned grades like 1.2% copper, with visible molybdenum. AngloGold Ashanti (AU-N), which held the area in 2004-2005, had planned to drill five holes at Cobrecon but pulled out of the region to focus on other areas before drilling commenced..

And to help focus in on other regional targets, Dorato is preparing to complete a 650-sq. km airborne geophysical survey.

Dorato’s share price has been on a bit of a wild ride since the company started drilling at Taricori in late 2009. It climbed from the 50¢ range to above $1.20, then fell back to 60¢ when the company’s drilling permit was mistakenly suspended. When the permit was reinstated Dorato’s share price climbed back above $1 and then started slipping with the rest of the market in recent months. On news of the latest results from Taricori it fell 16¢ to 62¢.

As of the end of Apirl Dorato had $14 million on hand. The company has 69 million shares issued, 91 million fully outstanding