Vancouver – Shares of Latin American Minerals (LAT-V, LATNF-O) bounced strongly off a one-year low following news the company cut visible gold during drilling at its Paso Yobai project in Paraguay.
The stock more than doubled in December 18th trading to close up 34.5 at 65 per share on identification of gold mineralization in a 6-metre section (from 86 metres down hole) of quartz-carbonate veins and stockworks.
“All holes intersected the mineralized zone ranging in width from 3-10 metres,” states Latin American’s senior VP of exploration Dr. Waldo Perez in the release.
“This confirms that the high grade gold found on surface with visible gold reported (previously) has continuity at depth and is not supergene,” continued Perez. “This has a profound impact in the tonnage potential of the Paso Yobai camp since we defined the gold bearing mineralized zone along strike for at least 4 km (with a further 2 km identified by soil geochemistry) to a depth by diamond drill to at least 100 metres over a width ranging from 3 to 10 metres.”
Latin American has completed 12-holes, totaling about 2,000 metres, of a planned 5,000-metre program at Paso Yobai. Drilling is at 200-metre intervals along a 1,200-metre portion of the known gold bearing zone.
Paso Yobai is a high-level low-sulphidation epithermal system related to alkalic suite of rocks. Gold typically occurs in association with quartz-sulphide mineralization (gold within pyrite crystals) and in native form within thin quartz-pyrite and quartz-manganese vein systems near the contact of mafic dykes and the sandstones.
The company is earning a 70% interest in the project by making staged payments of US$2.1 million over 3 years, issuing 100,000 shares and spending US$500,000 on exploration over the initial year.
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