Metallica Resources (MR-T) has increased the gold resource at its Mara Rosa property in Brazil.
A new calculation by a Chilean consultant puts the in situ gold resource in the Posse Mine zone at 12.7 million tonnes grading 1.77 grams per tonne, equivalent to 726,500 contained ounces. The estimate is based on a cutoff grade of 1 gram.
The total geologic resource, using a 0.5-gram cutoff, stands at 23.7 million tonnes grading 1.28 grams per tonne, equivalent to 975,000 contained ounces.
Mineralization in the zone averages 50 metres in thickness and dips 40. Over a strike length of 1.3 km, previous owners drilled more than 200 holes in programs totalling more than 20,000 metres.
Metallica has budgeted US$1.3 million for an in-house scoping study. The funds will also be used to drill Metallica’s first holes on the property.
President Louis Lepry says the company located six additional targets along strike of the Posse Mine structure.
Metallica completed its acquisition of the 25,000-ha Mara Rosa property in November 1997 by paying US$1.5 million to a Brazilian subsidiary of Australia’s Western Mining. Metallica sold a 1% net smelter return royalty on future production at Mara Rosa for US$400,000 to Euro-Nevada Mining (EN-T).
Western Mining produced 86,000 oz. gold at the property from 1989 to 1995.
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