LATIN AMERICA SPECIAL — Lyon Lake acquires second gold

Montreal-listed Lyon Lake Minerals has concluded an agreement that will see the company more than double the size of its Costa Rican land holdings.

Furthermore, the newly acquired concession also hosts a known gold deposit, making it the second such deposit under Lyon Lake’s control. The new 5,000-acre concession is adjacent to, and west of, the 4,700-acre Beta Vargas gold property. In addition to hosting a gold deposit with possible reserves of 418,500 tons averaging 0.115 oz. gold per ton, it is underlain by the possible extension of the gold-bearing structure which hosts the Beta Vargas deposit.

Lyon Lake now controls a potential 3.7-mile long section of the structure, a 2.4-mile stretch of which has returned economic gold grades from stream sediment samples.

The second gold deposit is in the northern part of the concession, about 2 miles north of the possible extension of the gold-bearing structure. Lyon Lake will complete exploration and metallurgical work on the deposit once the Beta Vargas mine goes in production.

Meanwhile, at Beta Vargas, Lyon Lake has completed more than 10,000 ft. of detailed trenching. The work was completed as part of a feasibility study to confirm the open-pit minable reserves previously calculated in the pre-feasibility study.

A production startup for Beta Vargas is scheduled for August at a rate of 550 tons per day.

This study indicated that Beta Vargas hosts probable reserves of 1.7 million tons averaging 0.04 oz. and possible reserves of 1.1 million tons averaging 0.043 oz.

A new trench completed 250 ft. east, and 130 ft. north, of the area that hosts the Beta Vargas reserves uncovered a new gold-bearing structure. The structure, which will be drilled later in the spring, returned values of 0.058 oz. over 33 ft.