Espalau Mining samples gold prospects in Ecuador’s El Oro province

Channel sampling by Espalau Mining (EPU-M) at the Paraiso joint venture in Ecuador’s El Oro province has uncovered high gold values.

The Val d’Or, Que.-based company can earn a half interest in the project by spending an undetermined amount (estimated at $2-3 million). The remainder is held by an Ecuadorean company.

The samples were taken at 15-metre intervals in adits dug along two gold-bearing veins. So far, 176 of 300 samples have been analyzed by fire assaying.

A drift along vein 1 graded 53.7 grams gold per tonne over a 33-cm average width and a 250-metre length. A second drift along the same vein graded 101 grams gold over a 30-cm width and a 280-metre length. The two drifts are separated by a vertical distance of 20 metres.

Vein 2 graded 26 grams gold over a 40-cm average width and a 770-metre length. An extension of this vein graded, on one level, 150 grams per tonne over a 43-cm average width and a 55-metre length, and, on another level, 96 grams per tonne over a 42-cm average width and a 55-metre length. The two levels are separated by 71 metres.

Until now, the property has been worked by artisanal miners who produced 9,000 oz. gold last year. The property has never been drilled.

Meanwhile, on Espalau’s Muyuyacu property, also in El Oro province, similar channel sampling is under way. Espalau must decide by Feb. 28 whether it will exercise its option on the property, which is held by a different group of Ecuadoreans.

Following the planned sale of its subsidiary, Ross Finlay, Espalau will have about $5.5 million in liquidities, equipment and investments, which it will direct toward its projects in South America and Canada.