Melinga re-evaluates low-grade gold, copper property in Honduras

A property in northwest Honduras, where a large, low-grade gold deposit was discovered in the early 1970s, is being re-evaluated by Melinga Resources (VSE). Subject to regulatory approval, Melinga will acquire 100% of Centroamerica De Representaciones (a Honduran company), owner of the 600-hectare Macuelizo exploration concession.

According to W.F. Johnson, a Melinga director, the potential for a significant deposit on the Macuelizo concession is excellent. With the intention of exploring this potential, Melinga is negotiating a private placement to finance a program of bulk sampling, reverse circulation and diamond drilling.

In the early 1970s, the United Nations examined the property for gold mineralization and, after drilling 33 holes, outlined possible and probable open pit reserves of 17.5 million tons grading 0.04 oz. per ton. Underlying this gold zone is an 11-million-ton indicated reserve of copper mineralization averaging 0.54% copper.

Although these reserves were considered uneconomic at the time, re-evaluation has determined that, due to poor drill core recovery, the average grades may have been underestimated. And, with recent advances in heap leap technology, the current cost of recovering the gold should be much lower.

Another survey by two Japanese agencies confirmed gold and copper mineralization in near-surface altered rocks, fracture zones and quartz veins, and uncovered new anomalies on the property. Two diamond drill holes intersected extensions of mineralization to the east.

If the financing negotiations are successful, Melinga will attempt to establish tonnage increases at high- grade vein deposits and at the established low-grade deposits. Many of the known geochemical and geophysical anomalies on the property have yet to be tested.