Drilling firms up Pico Machay (June 08, 2005)

Reverse circulation drilling is outlining and filling in a resource at Absolut Resources‘ (ABS-V) Pico Machay gold project 450 km southeast of Lima, Peru.

Intersections are highlighted by one hole, which cut 33 metres grading 1.19 grams gold at 5.5 metres down hole, followed by 54 metres grading 1.24 grams gold per tonne beginning at 90 metres down hole.

Another hole in the same central zone cut 30 metres grading as high as 2.3 grams gold and one hole intersected an interval as wide as 77 metres grading 1.06 grams gold per tonne.

Other holes hit 3-43 metres grading 0.4-0.86 gram gold. Several holes cut more than one mineralized zone. One hole failed to cut significant gold.

The central zone has received the bulk of the drilling to date. The mineralized zone is within a 2-km-by-4-km alteration zone and is about 300 metres wide. Significant gold has been cut in widely-spaced drill holes over an 800-metre strike length.

Mineralization follows a ridge along the south side of a dacite dome.

Holes are continuing to test the central zone and other targets to the north and west.

One hole about 500 metres north of the central zone has cut 2.66 grams gold over 12 metres.

Gold values in the north are associated with the northern contact of the dacite dome and adjacent volcanic rocks.

All widths and grades were calculated using a 0.3 gram gold per tonne cutoff as well as up to 1.5 metres of internal dilution.

Absolut acquired an option to earn 75% of the Pico Machay project from London-listed Monterrico Metals by buying unlisted, Peruvian-based, Calipuy Resources. A 2% net smelter royalty is payable to Queenstake Resources (QRL-T).

The 18-sq.-km property consists of five mining claims.

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