Drilling expands Choco 6 tonnage

A second phase of drilling has further defined the Choco 6 property in Venezuela’s El Callao district.

Gold Vessel Resources (VSE), which is earning a half interest from a private Venezuelan company, is expanding an existing 5.4-million tonne resource which grades 1.3 grams gold per tonne.

Based on 79 holes (representing 7,420 metres), the resource is estimated at 6.3 million tonnes grading 1.67 grams. This includes a high-grade core estimated to contain 3.4 million tonnes at 2.6 grams.

The drilling was done on a 50-metre grid, with about 20% of the area tested on a 25-metre spacing. Most of the holes were limited to the saprolite zone, with only limited bedrock

penetration.

Gold Vessel plans to conduct further drilling to test the primary mineralization, as well as to bulk-sample the saprolite zone. Work is expected to resume in 2-3 weeks, following completion of a private placement for up to $1 million.

Preliminary metallurgical work indicates good response to cyanidation, with bottle roll tests returning recoveries of 90-95%.

To earn its half interest, Gold Vessel issued 3 million shares and is required to spend US$3 million on exploration and development. The junior must also pay US$3 million within 60 days of the completion of a positive feasibility study.

Gold Vessel currently has about 38 million shares outstanding (43 million fully diluted).