High-grade intercepts carry Kinbauri

Despite a pull back in the price of gold Kinbauri Gold (KNB-T) gained on the market on the strength of high-grade gold intercepts in Spain.

In Toronto on Apr. 20 the Carp Ontario-based company gained 4.76% or 2 on a day that saw many other gold mining companies lose ground. Its shares closed at 44 on roughly 180,000 shares traded.

The company announced it has finished the second of two planned drill holes on the Peton de Lobo vein system at its Corcoesto gold project in northwestern Spain.

One diamond drill hole — drilled to a depth of 348 metres — returned the following gold intercepts: 6 grams gold per tonne over 2 metres beginning at 29 metres and including 9.5 grams gold per tonne over 1.2 metres; 6.1 grams gold per tonne over 2 metres beginning at 110 metres and including 11 grams gold over roughly 1 metre; and 6.8 grams gold over 2 metres beginning at 190.6 metres and including 12.4 grams gold over roughly 1 metre.

The company says intercepts are between 60% and 90% of true widths.

The above intercepts extend a number of high-grade intercepts previously identified. Highlights from that drilling included one hole returning 13.6 grams gold over 1 metre and another hole returning 9.6 grams gold over 1.5 metres.

The zone defined by these intercepts is open along strike and at depth.

Kinbauri is completing the 2,100 metre diamond drilling campaign as part of its requirement to earn a 65% interest in the property from Toronto-based Rio Narcea Gold Mines (RNG-T). In all Kinbauri must spend 4 million euros over five years to gain the 65% interest.

The drill program is focused on extending high- grade gold zones within the Pozo de Ingles and the Lobo system with a secondary component to better define the locations, orientations and gold content of a number of previously delineated vein systems within the northern part of Corcoesto.

Geochemical soil sampling has already defined the orientation of these and other vein systems.

The company says it will release assay results for the remainder of the vein systems after the completion of drilling which should be in mid-May.

Thus far the drill program has been focused on expanding high grade resources for underground mining, however, with the rise in gold prices, the company says it is now considering a complementary open pit development at the property.