Golden Peaks drills at Sierra de las Minas

Having completed 10 diamond drill holes on the V-1 gold vein at the Sierra de las Minas property in northwestern Argentina, Golden Peaks Resources (GL-V) is moving its rig northwest to the Core zone.

The Core zone comprises gold-bearing quartz veins, which have been traced over a 900-metre strike length along the structure known as Vallecito. Trenching over a 50-by-0.5-metre quartz vein returned values of 4.6 grams gold per tonne over 1.5 metres, including 0.5 metre of 11.4 grams gold and 8.3 grams silver. Smaller veins in the same area returned values ranging from 0.5 to 9.1 grams gold and 4.1 to 28.2 grams silver.

In March 1999, eight diamond drill holes were completed on the V-1 vein. The shallow drilling intersected mineralization over a strike length of 100 metres. One fence of holes tested the mineralization to a vertical depth of 100 metres. The best intersection cut 38.4 grams gold, 239.56 grams silver and 1.58% copper over a 3-metre section. Encouraged by this, Golden Peaks tested the V-1 vein during the first 1,300 metres of its recent drill program. Assay results are expected before March.

Meanwhile, at the JV zone, 2.5 km northwest of the V-1 vein, the company has begun a program of line-cutting, mapping, trenching and soil geochemical sampling. Discovered late last year, the zone has been outlined over an area measuring 1.4 km by 800 metres. Of the 70 rock samples collected, 16 contained greater than 10 grams gold per tonne, the highest value being 290.7 grams. Also, 23 samples contained greater than 25 grams silver, with a high of 861.6 grams. The zone will be drilled later this year.

The sampling is part of an ongoing US$900,000 program focused on both the Sierra de las Minas and Los Dos Buhos projects.

Japanese-based Mitsubishi and Mitsubishi Materials are earning a combined 30% interest in the projects from partners Golden Peaks and Primo Resources (PRI-V) by spending US$1.5 million on exploration. Primo has elected not to participate in the latest exploration program, and its interest in the projects will be diluted in accordance with the previous joint-venture agreement.