EXPLORATION ’95 — Delgratia program begins in Nicaragua

A wholly owned subsidiary of Delgratia Developments (VSE) intends to explore six areas, described as having “drill target potential,” on the Murra concession in Nicaragua.

Murra is one of 11 concessions held by Delgratia in various parts of the Central American country. The combined land package covers more than 1.1 million acres and includes two concessions with known reserves. These are the Coca Mina concession (with 13 million tons averaging 0.5 oz. gold and 0.77 oz. silver per ton, plus 3.4% zinc) and La Reina (an underground mine with 630,000 tons at 0.18 oz. gold).

The 300,000-acre Murra concession is in the Neuva Segovia district, 155 miles by road from the capital city of Managua.

The southwest-northeast-trending Murra belt, which is about 50 ft. wide and at least 196 ft. long, extends diagonally across the property and beyond its boundaries. This belt encompasses the known surface prospects and underground workings on the Murra concession, including the San Albino mine, the San Gregoria, Paredes and El Rosario districts, Mineral Carvi and Cerro Chachagua. Work crews are now on site. The first target is the San Albino mine, a former producer on the western edge of the concession which lies within a 14.7-by-5-mile system known to host at least 12 veins.

Systematic sampling of underground workings and outcropping veins is under way in an effort to determine drill targets. Initial drilling is aimed at evaluating the potential of near-surface mineralization for open-pit mining. Delgratia’s work program will include geophysics and geochemical sampling to determine the strike and depth extension of the Rosario vein. This target, in the northeastern part of the concession, contains 70,000 tons grading 0.68 oz. gold. The vein extends 3,937 ft. along strike but has not been tested below 50 ft.

At the southern end of the concession, Delgratia intends to sample the drainage system of the Quilali district to trace the source of its placer gold. This 20,000-acre portion of the concession was an active gold placer producer between 1930 and 1960, with numerous small shafts and tunnels dug to reach deeper gold areas. It is believed the alluvial gold was controlled by the drainage system of four rivers, all flowing southward from the Murra belt. Work is also in progress at La Reina, a concession 78 miles from Managua. The main adit of this past producer has been cleared, and grab samples taken from the East vein face have returned values averaging 0.25 oz. gold over 26 ft. The West vein returned values averaging 0.34 oz. over 24.6 ft. Dewatering of the lower level (300 ft. below the main adit) is expected to begin shortly. Exploration on the underground workings is aimed at confirming and evaluating the potential for extending known reserves.

In Venezuela, Delgratia plans to continue work to advance El Pauji, a concession in the Kilometre 88 district.