Viceroy’s Gualcamayo drilling taps new higher-grade area

Vancouver – The last four holes from the latest drilling at Viceroy Exploration’s (VYE-V) wholly owned Gualcamayo gold project, in west-central Argentina, returned further significant intersections.

This final round of definition drilling was testing the western portion of the Quebrada del Diablo (QDD) zone at Gualcamayo and returned wide gold mineralized intercepts.

Drilling highlights include:

• Hole QDR 99 This hole at QDD intersected 60 metres (from 120 metres) averaging 2.8 grams gold per tonne, including 16 metres of 6.41 grams gold and 4 metres of 14.62 grams;
• Hole QDR 101 A 124 metre interval (from surface) at QDD returned 0.8 grams gold, including sections of 16 metres of 1.42 grams, 24 metres of 1.07 grams gold and 14 metres of 1.34 grams.

Mineralization in hole 99, that delivered the higher-grade results, was one of the lowest topographic intersections so far encountered in the deposit. These last set of holes were situated on the western edge of the deposit which remains open toward the west.

A couple of these holes encountered wide zones of mineralization starting from surface, suggesting a possible positive impact on future extraction of this material.

With the drill program now concluded, a revised resource calculation of the project is now underway.

The QDD deposit at Gualcamayo has an indicated mineral resource of 12.7 million tonnes grading 1.17 grams gold and an inferred resource of 22.5 million tonnes grading 1.02 grams gold at a cut-off grade of 0.6 grams. Gold mineralization is hosted in stockwork-fractured carbonates, carbonate breccias and intrusive breccias.

In late-2003, Viceroy Exploration was formed as a spin-off company to hold the Argentinean mineral assets from the reorganization of Viceroy Resource Corp, now Quest Capital (QC.A-T).

The latest figures show Viceroy having 28.7 million shares outstanding. The issue gained a couple of pennies on the results to close at $1.22 per share on moderate volume.