Sinchao hits another long intercept in Peru (September 18, 2008)

Vancouver – Long mineralized intercepts from Sinchao Metals‘ (SMZ-V) namesake project in Peru seem to be becoming the norm.

The latest results out of Sinchao come from the Breccia zone, where hole 48 returned 170.3 metres grading 0.74% copper, 1.19 grams gold per tonne, and 7.1 grams silver per tonne, from 18.7 metres downhole. Hole 46, drilled form the same pad but in the opposite direction, hit two mineralized intervals: the first returned 70.2 metres from surface grading 0.7% copper, 0.35 gram gold, and 3.7 grams silver and the second cut 105.6 metres from 223 metres doeth grading 0.42% copper, 0.3 gram gold, and 7.9 grams silver.

The joint drill pad for the above holes sits 175 metres west of the drill pad for hole 44, which recently returned 97 metres grading 1.41% copper, 1.09 grams gold, and 25.9 grams silver, essentially from surface, followed by 128.5 metres averaging 0.51% copper, 0.25 gram gold, and 8.6 grams silver from 156 metres depth.

Hole 45 was collared 500 metres to the northwest. It returned an 81-metre intercept averaging 0.29% copper, 0.27 gram gold, and 5.7 grams silver from 183 metres depth followed by 78.7 metres of 0.39% copper, 0.22 gram gold, and 12.5 grams silver. The best intercept on the property to date came from hole 37, which was collared 200 metres to the south of hole 45. Hole 37 returned 188 metres grading 2.02% copper, 1.07 grams gold, and 11.3 grams silver.

The Breccia zone has now been traced for 600 metres along strike and over 450 metres width. Holes 46 and 48 revealed dacite, dacite porphyry, hydrothermal breccia, and skarn. Hole 45 cut through brecciated dacite cut by numerous faults.

Sinchao is in northern Peru’s Cajamarca province and sits roughly 30 km from Newmont Mining‘s (NMC-T, NEM-N) Yanacocha deposit, which is home to the largest gold mine in South America.

Sinchao Metals is using three drill rigs to advance a 10,000-metre drill program focused on the Breccia and Skarn zones and aimed at delineating a resource. The property’s two other zones are known at the High Sulphidation Epithermal zone and the Massive Sulphide lens.

Andean American Mining (AAG-V) had held the Sinchao project since 1996, completing over 8,000 metres of drilling in a few years. The property returned promising results but work was put on hold because of low metal prices. In 2006 the company spun out Sinchao Metals, with the Sinchao property as its sole focus. The Skarn and Breccia zones have been the focus since.

Sinchao Metal’s share price remained unchanged on news of the latest drill results, trading at 18. The company has a 52-week trading range of 15 to $1.05 and has 70 million shares issued.