Minera Rayrock (TSE) and partner Hecla Mining (NYSE) say their equally owned Chilean subsidiary, Minera Dona Isabel, has intersected a wide zone of good grade gold mineralization on the Pullali property, 80 miles northwest of Santiago.
In a bid to determine the feasibility of proving up enough ore to support a bulk-tonnage, low-grade heap leach mine, the joint venture recently completed 2,500 ft. of drilling, including 26 holes near some old open pits.
While drill results don’t substantiate the potential for a large low-grade deposit, the partners are encouraged by a 177-ft. intersection in hole 16 which averaged 0.16 oz. gold per ton at a depth of 285 ft.
They say the hole bottomed in mineralization and the estimated true thickness of the intersected zone is 128 ft.
Combined with results from other holes, the new zone points to the potential for a smaller open pit operation or underground mine, according to Minera, which is planning to test the deposit along strike from hole 16.
Meanwhile, Minera has awarded the final feasibility contract for its wholly owned Ivan copper project in northern Chile to Kilborn Inc. of Toronto. Designed to determine various costing aspects as well as the overall viability of the project, the feasibility study is expected to be completed by September. Having outlined total reserves of 5.2 million tons grading 2.5% copper, the company believes it will cost US$19.5 million to build an open pit heap leach mine on the Ivan property.
Be the first to comment on "Minera Rayrock’s Chilean discovery"