EXPLORATION ROUNDUP — Lyon Lake hits gold in Costa Rica

In the first five holes drilled on the Canamazo concession in Costa Rica, Lyon Lake Mines (LLL-M) has intersected low-grade gold values.

Prior to the drilling, Lyon Lake conducted a geochemical survey on soil and rock covering a gold showing previously investigated by another company.

About 1,000 metres of diamond drilling have been completed, and initial results confirm the presence of a gold-bearing structure up to 50 metres wide.

Hole 1 was stopped at 85 metres because of technical problems, but not before it intersected the gold-bearing structure over a 50-metre width.

Hole 2, collared 150 metres southwest of the hole 1, was also stopped early (at 22 metres) because of technical problems, and core recovery was just 52%.

However, each 2-metre sample assayed returned gold values, the best being 0.81 gram per tonne.

Hole 3 was drilled from the Hole 2 collar, but at a steeper angle. The best 2-metre core sample value was 2.91 grams gold, while the average over the 38 metres of mineralization was 0.6 gram.

Hole 4 was collared 100 metres northwest of holes 2 and 3. In it, several 2-metre sections graded close to 1 gram gold.

Hole 5, collared 300 metres northwest of holes 2 and 3, hit 2-metre intervals of 0.78 and 0.74 gram gold.

The results were sufficient for Lyon Lake to schedule 5,000 metres of reverse-circulation, beginning this month.

The Canamazo concession lies immediately north of Lyon Lake’s Beta Vargas property, which is being put into production. Beta Vargas has reserves of 2.9 million tonnes grading 1.3 grams gold.

Lyon Lake considers Canamazo a possible satellite operation for Beta Vargas, since it is about 10 km by road from the site of the Beta Vargas mill site.