Although the junior has expressed encouragement over drill results from its Venezuelan properties, shares of Vengold (TSE) took a tumble, dropping $2.25 to close at $5.50, following news of the results.
The company drilled 69 holes totaling 11,000 metres, including 43 holes on the Oro Uno property and 13 holes on the Sor Teresita. Both properties are in the Kilometre 88 region.
More than 5,500 core samples from Oro Uno revealed at least two geologically significant mineralized systems.
Drilling on the property concentrated on the Tapaya pit, where results from eight holes indicate a geological resource of 200,000 oz. gold eqivelant (6.2 million grams). Intersections at the west end of a 2-km-long shear zone included 73 metres averaging 2.05 grams gold equivalent per tonne (1.15 grams gold and 0.64% copper); 48 metres of 3.14 gold equivalent (1.66 grams gold and 1.05% copper) and 43 metres of 2.57 grams gold equivalent (1.51 grams gold and 0.78% copper).
Market watchers were clearly taken aback. According to Michael Jalonen, gold analyst with Midland Walwyn Capital: “They paid $60 million for the property; I think the market was expecting 2 million oz. — not 200,000 oz.” Results from holes drilled on the Sor Teresita and Bizkaitarra properties will be released in August.
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