results of “significant” exploration drilling at the Chuscal...

results of “significant” exploration drilling at the Chuscal project were issued a week ago, sparking a spike in the SP, which couldn’t be sustained.

Since then the SP has been well supported around current levels on much larger than average volumes, indicating heightened investor interest for this tiddler with a market cap of around $16 million.

it’s worth revisiting what MNC said about Chuscal in its statement to ASX a week ago, and ahead of the results of the second drill hole, which could be issued in coming days or next week.

without putting too fine a point on it, the first hole increased understanding of the geology, potentially paving the way for the second and third holes to bring home the bacon. At least that’s i want..

were the heads to rise fourfold, the OAs could come into play.

MNC:

”The Chuscal Prospect, now being drilled by Metminco, was prioritised for drilling as a result of its expansive 900m by 530m surface gold anomaly (rock-soil and rock chip geochemistry) averaging 1.76 g/t Au (uncut) (see ASX release of 6 December 2018), channel sampling of epithermal veins exposed in the Guayacanes artisanal workings which averaged 8g/t Au including a continuous along strike zone of 83m @ 7.3g/t Au4, and favourable geology - suggesting potential for Chuscal to be a very significant deposit for the company.

”CHDDH002 was recently completed for a total depth of 412.4m (Figure 4). The primary objective of the drill hole is to test the eastern end of the large surface geochemical anomaly and pass underneath the historic Guayacanes workings to investigate the core of the diorite zone as mapped on surface. After passing through the diorite, the hole intersected an extension of the breccia zones mapped in CHDDH001. The second half of CHDDH002 is of most interest as it passes under old workings and should intercept several of the horsetail structures mentioned above (see Figures 2 & 4).”