Greenstone expands its Libertad concessions

A US$1.5-million exploration program at the Libertad concessions in Nicaragua is bearing fruit for Greenstone Resources (TSE).

Four new zones of gold mineralization have been identified, two of which have the potential to increase minable reserves at the Mojon deposit to 1.5 million oz.

Two trenches, 300 metres and 420 metres southwest of the Mojon, have encountered near-surface mineralization and extended the length of the structure by 500 metres. The first trench averaged 1.45 grams gold per tonne over 18 metres, while the second averaged 1.32 grams over 12 metres.

Two drill holes confirmed the presence of mineralization at depth in the Southwest Extension zone. The first hole averaged 1.46 grams over 12.2 metres, beginning at a depth of 57.9 metres, while the second cut a 21.3-metre interval averaging 2.76 grams at a depth of 50.3 metres.

Greenstone will carry out additional drilling to prove up resources and reserves in this extension zone.

Meanwhile, two holes have intersected wide structures east of, and downdip from, the Mojon deposit. Although no assays were available at presstime, holes 45 and 46 intersected what are, to date, the widest intervals of mineralized massive quartz yet found on the property. Hole 45 intersected 95 metres of massive quartz and ended in mineralization, while hole 46 cut 50 metres of massive quartz.

Elsewhere on the property, reconnaissance work has identified two other structures with merit.

Extensive trenching 1.5 km west of the Mojon deposit uncovered a structure with a strike length of 1.6 km and an average width of 22 metres. Early results indicate the zone is gold-bearing.

Farther to the east, two trenches cut a 50-metre-wide, altered and mineralized structure. The first of the two trenches, 2 km east of the Mojon deposit, yielded an assay of 2.59 grams over 11 metres.

Greenstone will continue its efforts to increase reserves at the Mojon deposit, which is scheduled to start production in early 1997. It will also evaluate the remaining 29 targets found on the Libertad property.