Sulliden cuts narrow gold

A 10-hole drill program by Sulliden Exploration (SUE-M) has failed to replicate previous promising surface results from the Santo Toribio project in west-central Peru. The company will now target a silicified ridge on the western side of the property.

Situated near the Pierina mine of Barrick Gold (ABX-T), the 9-sq.-km property hosts several gold prospects. Summer mapping and surface rock sampling resulted in the discovery of three mineralized areas.

The 987-metre drill program tested the lateral and vertical extensions of the Rubia and Boliche structures, in an area where argillized tuffs are cut by a network of quartz-sulphide veins.

All the holes hit the intended structure, but the gold-silver grades were significantly lower and narrower than those identified on surface.

The highlight was hole 3, which cut an 0.5-metre core length grading 17.1 grams gold and 494.3 grams silver per tonne.

Two other holes intersected wider structures but with significantly lower grades: hole 6 cut 7 metres grading 0.84 gram gold and 56.5 grams silver; hole 8, 10.4 metres grading 0.54 gram gold and 24.3 grams silver. Holes 4 and 9 showed gold grades of around 1.6 grams across widths of 1.3 and 0.5 metres, respectively.

Based on these results, Sulliden says the gold and silver potential of the area rests only in the tuffaceous unit that extends from surface to a depth of 40 metres.

The rig has now moved to the western side of the property, where a “silica cap” 500 metres long and 300 metres wide and a coincidental geophysical anomaly measuring 800 by 400 metres returned 2-5 grams gold and 200-1,700 grams silver in grab samples. Sulliden plans to drill 2,000 metres in this area, with results expected in March.

Sulliden is obliged to spend US$2.5 million on exploration by March 2002, after which it can buy a half-interest for US$1.1 million from Peruvian-based Minera Santo Toribio.