Placer Dome gold discovery in Costa Rica

A gold discovery speculated to have multi-million-ounce potential appears to have triggered a “Canadian-style claims rush in Costa Rica.

The interest was sparked by reports that Placer Dome (TSE) was drill-testing a large mineralized system on its Cerro Crucitas project near the Nicaraguan border.

American Barrick Resources (TSE) is reported to have optioned properties totaling 300 sq. km near this discovery, and Lyon Lake Mines (ME) recently acquired 80 sq. km adjacent to Placer Dome’s concessions.

“Most of the known gold deposits in Costa Rica are on the Central gold belt, says Lyon Lake President Guy Hebert. “This discovery (Cerro Crucitas) is something brand new.

Placer Dome spokesman Hugh Leggatt cautions that Cerro Crucitas should be viewed as an early-stage project. “Drilling has been done, but we do not have enough information to make a resource estimate.

The project resulted from a generative program started by Placer Dome in 1993. Based on this work, a land package of 15 concessions (30,000 hectares) was assembled to cover what is now known as the Sarapiqui mineral belt. A US$1-million, grassroots exploration program began earlier this year, which included the drilling of 3,000 metres in 24 holes. Work

is focused on a near-surface, volcanic-hosted, epithermal system. Lyon Lake’s land package is about 7 km from Placer Dome’s discovery; however, the junior says its holdings are on the same system of fractures and hydrothermal volcanic horizons. Lyon Lake has ordered a LANDSAT (satellite) study of its concessions to define exploration targets. A field program will begin early next year.

Lyon Lake has been active in Costa Rica since 1990, and its land package in the country totals 119 sq. km. The junior is currently developing its Beta Vargas gold property, which is scheduled to enter production in early 1995 as an open-pit operation. “Costa Rica is not against mining, but it has high environmental standards similar to those in Canada, Hebert says. Meanwhile, Placer Dome is planning a second-stage program for 1995, the budget for which has yet to be determined.

Vincent Borg, Barrick’s vice-president of public affairs, says the company only recently optioned its claims and work programs have not yet started.