The first few holes of a 21-hole drill program on the Beta Vargas property in Costa Rica are confirming the presence of a large, low- grade gold deposit. Assays from Lyon Lake Mines’ (ME) first hole on the property include a 60-ft. intersection grading 0.035 oz. gold per ton and, according to the project geologist, holes 2-4 contain the same type of alteration and mineralization.
Lyon Lake, earning a 50% interest in the property from Adonos Resources (VSE), is attempting to confirm and possibly increase the Costa Rican government’s preliminary reserve estimate of 6.7 million tons grading 0.034 oz.
The drill program, which Lyon Lake expects to complete some time in December, will be followed by heap leaching tests and a feasibility study.
Based on current reserves of oxidized material, Lyon Lake anticipates a 3,000- to 5,000-ton-per-day open pit operation, without the use of explosives. The deposit is near the necessary infrastructure, including a paved road, electricity, manpower and water. Lyon Lake says the deposit could be put into production as early as the end of 1991.
Back in Canada, Mosquito Consolidated Gold Mines (VSE) will resign as operator of the Mosquito alluvial gold project in British Columbia. On Nov. 1, Lyon Lake will become operator and hold a 52% interest in the currently dormant project.
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