Drilling firms up Pico Machay (June 20, 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 per tonne at a down-hole depth of 5.5 metres, followed by 54 metres of 1.24 grams gold starting at 90 metres down-hole.

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

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-by-4-km alteration zone and is 300 metres wide. Significant gold has been cut in widely spaced holes over a strike length of 800 metres.

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

Holes continue 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 cutoff grade of 0.3 gram gold per tonne, as well as up to 1.5 metres of internal dilution.

Absolut gained an option to earn 75% of the Pico Machay project from London-listed Monterrico Metals as a result of buying Calipuy Resources, an unlisted company based in Peru. A 2% net smelter return royalty is payable to Queenstake Resources (QRL-T).

The property comprises 18 sq. km.