Viceroy drills Gualcayamo

Vancouver — Early drilling by Viceroy Exploration (VYE-V) on its Gualcayamo gold project in west-central Argentina has returned positive results.

The reverse-circulation program tested five targets and explored further the Quebrada del Diablo (QDD) deposits.

Significant gold mineralization was encountered in drill holes on both the Target 11 and the Magdalena zones. Target 11, about 300 metres north of QDD, was tested with three RC holes. Hole QDR59 returned 30 metres, from surface, grading 2.31 grams gold per tonne, including 16 metres of 3.18 grams gold. The mineralization, which appears to be flat-lying, is at least 30 metres thick and open toward the main QDD resource.

The Magdalena zone was also tested, with three RC holes. Hole QDR63 returned 26 metres grading 2.09 grams gold, including 6 metres of 3.64 grams. Hole QDR64 intersected 28 metres of 3.26 grams gold.

In the 1980s, Magdalena was explored extensively by Anglo American (AAUK-Q), which completed several surface holes, four adits and 14 underground holes. The latest drilling confirms and extends mineralization from surface to depths below those outlined previously.

The main QDD zone has an indicated mineral resource of 12.7 million tonnes grading 1.17 grams gold and an inferred resource of 22.4 million tonnes grading 1.02 grams gold at a cutoff grade of 0.6 gram. Mineralization is hosted in stockwork-fractured carbonates, carbonate breccias and intrusive breccias. The Amelia Innes zone, 600 metres to the northwest, contains a further inferred resource of 2.7 million tonnes at 2.63 grams gold in a high-grade skarn.

Viceroy Exploration was formed in late 2003 as an Argentine-focused spinoff of Viceroy Resource, which was renamed Quest Capital (QC.A-T).

The company has 28.7 million shares issued and outstanding.