Sulliden drilling at Mario

Sulliden Exploration (SUE-T) has begun a 7-hole, 800-metre drilling campaign on the Mario base metal property in the Peruvian department of Junin, some 50 km southwest of Huancayo.

The new holes will test extensions of the massive-sulphide zone cut by Cominco in 1999 and electromagnetic (EM) anomalies defined by Sulliden late this past summer.

A massive-sulphide zone in hole MA-9 returned 9.5% zinc, 6.6% lead and 629 grams silver per tonne over 3.9 metres. Three holes, totalling 400 metres, will initially test the structure’s lateral and vertical extensions.

Another four holes, consisting of 400 metres in all, will test several EM anomalies at the contact zone between altered marble and fragmental, argillized and chloritized dacite — a setting similar to the one encountered in hole MA-9.

Results from the drilling are expected by the end of November.

Sulliden optioned the Mario property from Cominco (CLT-T) in mid-August. Under the deal, Sulliden can earn a 100% interest by spending US$1.2 million on exploration over six years. At least US$100,000 must be spent in the first year. Cominco will retain a 2% net smelter return royalty, of which 0.5% can be bought by Sulliden for US$1 million. For US$10.5 million, Cominco can also back into a 51% interest in a joint venture with Sulliden, once the latter spends US$7 million on the property. It can boost its interest another 9% by spending an additional US$2.5 million.

Based on the lack of surface exposure and the shallow nature of the intercept, Cominco believes that only the top of a replacement body was cut and that potential for continuity and increased thickness may occur at depth.

The Mario project lies in the Pucara Basin, which hosts large carbonate replacement deposits, such as Cerro de Pasco. The area is underlain by flat-lying limestone intruded by Tertiary high-level stocks that consist mostly of dacite domes with associated vents and outflow breccias. The dacites are surrounded by marble up to 200 metres in width, with locally observed spotty skarns.