El Callao drilling returns more gold at Lo Increible

Drilling on Lo Increible in Venezuela continues to return gold values for El Callao Mining (VSE), which is earning up to a 70% interest in the property.

Infill work within the Victoria zone is aimed at defining a portion for immediate mining.

Under a year-long contract, the Vancouver-based junior will mill 8,300 tons per month at Monarch Resource’s nearby mill. This is expected to result in 16,000 oz. for the year, at a profit of about $200,000 per month. El Callao hopes to receive a mining permit before June. Revenue from production, to be paid in local currency, will be used to fund further work. Recent drill results include a 145-ft. intersection grading 0.13 oz. per ton in hole 12; 120 ft. grading 0.19 oz. in hole 13; and 50 ft. in hole 14 grading 0.29 oz.

Among the intersections were high-grade intervals which the company believes may represent two oreshoots that could be minable from underground once open-pit mining winds down.

The Victoria zone measures 1,000 ft. along strike, up to 160 ft. in width and 600 ft. in depth. It remains open in all three directions.

El Callao has not released a resource estimate for the zone, nor has it calculated the smaller resource it plans to mine while exploration continues. Recent drill results from the property, situated in Bolivar state, include: Hole Interval Width Gold

(ft.) (ft.) (oz./ton)

RCI-01 85- 250 165 0.059

incl. 235- 250 15 0.12

RCI-02 0- 120 120 0.077

incl. 20- 40 20 0.18

RCI-03 30- 100 70 0.1

incl. 45- 65 20 0.2

RCE-04 15- 170 155 0.061

incl. 35- 40 5 0.22

RCI-05 80- 165 85 0.19

incl. 80- 100 20 0.57

RCI-12 0- 145 145 0.13

incl. 15- 40 25 0.33

RCI-13 25- 145 120 0.19

incl. 35- 60 25 0.54

RCI-14 115- 165 50 0.29

incl. 115- 150 35 0.35

RCI-15 85- 90 5 0.84

RCI-17 170- 230 60 0.095

incl. 220- 230 10 0.17

RCI-18 155- 170 15 0.27

RCI-21 25- 45 20 0.44

RCI-22 155- 175 20 0.3