South American’s gold bets look promising

Exploration activity on both the Akaiwong and Aurora properties in Guyana is uncovering good gold grades for South American Goldfields (TSE). Testing a strong geophysical anomaly on the Akaiwong property, joint venture partner Homestake (NYSE) has intersected 106 ft. of saprolite (strongly weathered material), grading 0.12 oz. gold per ton. The drill hole (AK 13) was collared 100 ft. east of AK 12, which yielded 115 ft. grading 0.06 oz. at the end of last year.

Another hole undercut AK 12 in bedrock, yielding 244 ft. of 0.04 oz. More holes are planned to test the northern and southern ends of the anomaly.

Nearby at South American’s Aurora property, initial results from underground sampling of old mine workings suggest widespread mineralization. One tunnel sampled by Denison Mines (TSE) yielded a 50-ft.-long, 10- to 16-ft.-wide zone grading 0.73 oz. (uncut), with single samples grading up to 5 oz. over 4 ft.

Because the mineralization at both properties is close to surface and mostly contained in weathered material, open pit oxide operations may be possible.


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