Golden Peaks returns to drilling at Fortuna

Vancouver – Golden Peaks Resources (GL-T) has cut long intercepts of near-surface gold as it works towards a resource estimate at the La Fortuna project in Argentina’s Chubut province.

The company had planned to define a resource in late 2008 but delayed the calculation to allow for greater infill drilling. Now the company has embarked on a 6,000-metre drill program to supplement the roughly 30 km of drilling already done at La Fortuna.

Golden Peaks has concentrated its latest drill program on the T-11 and G zones of mineralization, roughly 700 metres apart and hosted in the same 2-sq. km system.

In the T-11 zone, hole 143 cut 28 metres grading 4.88 grams gold per tonne starting at 1.5 metres, including 3 metres grading 20 grams gold. Close by hole 142 returned 30 metres averaging 3 grams gold starting at 54 metres. The company has completed nine holes to date but has only received assays for two.

Previous drill results in the area include hole 10 that cut 68 metres grading 2.35 grams gold, hole 11 that intersected 38 metres grading 5.72 grams gold, and hole 105 that returned 55 metres averaging 2.44 grams gold.

The 2009 technical report on the project outlined possible epithermal gold and porphyry gold or gold-copper deposits in carbonate-quartz veins and disseminated sulphides.

Head geologist Kieran Downes explained over the phone that the company is also drilling the large breccia targets below the zones as identified by a controlled source audio-frequency magnetotelluric survey. The aim is to locate the root zones of the gold mineralization, which if hit could sharply change the project dynamics.

The 8,000-hecatre property is located roughly 1,300 km south of Buenos Ares. The area is described as remote but with reasonable access. Roughly 65 km of gravel roads link the project to national route No. 25, with the nearest town about 45 km south of the property.

The area is in the eastern foothills of the Andes mountains, with elevation ranging from 750 metres to 1,500 metres. Exploration has been carried out year round by Golden Peaks in the past, but the company has yet to decide whether it will drill in the southern winter this year.

Golden Peaks recently renegotiated the terms of acquisition for the project and will be paying a flat sum of US$6 million over five years rather than the old agreement which had payments in line with gold production. Despite the extended payment scheme the company already has full title to the project and no royalties outstanding.

Golden Peak’s stock price was up 8¢ on the latest news to close at 83¢. The company has a 52-week share price range between 28¢ and $1.19 and 43 million shares outstanding.