El Callao Mining confident of Lo Increible’s potential

Gold explorer El Callao Mining (VSE) is pleased with results to date from drilling on its Lo Increible No. 4 concession in Venezuela.

The junior is earning up to a 70% interest in the property, which comprises almost 25,000 acres on a northeast-by-southwest-trending series of gold-bearing shear zones.

The gold belt measures 5 miles long and 3,000-5,000 ft. wide, as indicated by some 86 historic hardrock gold mine workings.

The initial 34,000-ft. reverse circulation drilling program tested several surface targets partially exposed by old mine workings and surface trenches. Most of the work concentrated on La Victoria, an area at the southern end of the belt.

New results from La Victoria include: a 165-ft. intersection grading 0.047 oz. gold per ton in Hole LV-7; 70 ft. grading 0.097 oz. in LV-37; and 30 ft. grading 0.11 oz. in LV-39.

La Victoria includes at least three zones of gold mineralization dipping at about 40 to the southeast. Drilling to date indicates that these measure between 25 and 200 ft. in width and average 0.05-0.14 oz. gold. The zones extend at least 700 ft. to the north and 300 ft. to the south of the Victoria open pit, as well as 600 ft. downdip, with all three zones remaining open on strike and to depth.

Gold mineralization also remains open on strike and at depth on the zone known as La Experencia, about one mile to the north and along strike from La Victoria.

Positive drill results from four areas — La Victoria, La Experencia, La Cruz and La Loca — will be followed by further drilling in the near future. Selected results received to date are as follows:

Hole Interval(ft.) Width(ft.) Gold(oz./ton)

La Victoria

LV-5* 000-120 120 0.110

LV-6* 000-195 195 0.081

LV-7 135-300 165 0.047

LV-10* 065-145 80 0.099

470-565 95 0.082

LV-11* 055-145 90 0.078

LV-36 065-125 60 0.051

LV-37 210-280 70 0.097

LV-38 225-300 75 0.065

LV-39 095-125 30 0.130

LV-40 115-185 70 0.084

La Experencia

LX-4* 260-335 75 0.10

LX-15 590-645 55 0.054

LX-16 425-455 30 0.280

LX-44 005-550 50 0.130

LX-45 035-550 20 0.130

085-190 105 0.044

LX-46 000-400 40 0.075

LX-47 000-150 15 0.120

La Cruz

TL-30 130-150 20 0.230

410-455 45 0.100

LC-42 095-170 75 0.150

La Loca

LC-59 095-115 20 0.120

* previously released