Greenstone enhances Libertad potential

Drilling and trenching by Greenstone Resources (TSE) on its Libertad concessions in Nicaragua have expanded the size of the Cerro Mojon deposit.

Reverse-circulation drilling has extended Cerro Mojon to the northeast, southwest and at depth. Two holes drilled to the northeast cut intervals of 27.4 metres averaging 1.27 grams gold per tonne and 129.6 metres averaging 0.53 gram. The best intersection at depth, more than 50 metres below previous drilling, averaged 6.33 grams over 24.3 metres. The company is also awaiting assay results from seven holes drilled to test the southwestern extension.

The latest results suggest the gold-bearing structures are richer and more continuous than previously thought.

Greenstone now believes proven and probable reserves at the deposit could rise to 1.5 million oz. from a previous estimate of 630,000 oz.

Northeast of Cerro Mojon, at the structure known as Crimea, trenching has returned 3.08 grams over 10 metres at CR-1, while CR-2 returned 2.34 grams over 30 metres.

Trenching was also completed on other promising targets including the wide alteration zones known as Cerro Gobierno and Santa Elena, though assay results are still pending. A second drill is set to turn on the property, and 12 drill pads have been constructed to test the structures.

Greenstone’s geologists have concluded that many of the new targets lie within a single, continuous mineralized corridor 15 km long and centred on the Cerro Chamarro target. The target is thought to be a conduit for the mineralizing fluids that have been deposited along the structural corridor. Because of its location and mineral potential, Cerro Chamarro will soon undergo trenching.

The company has identified 31 targets, including El Salto, Cerro Mojon southwest, Cerro Mojon, Cerro Mojon northeast, El Zopilote, Babilonia, Crimea, Santa Elena and Cerro Gobierno.