"""The initial drilling programme commenced in late November 2009 and a total of thirteen RC holes has been completed for approximately 2,400 metres. The first batch of assays results are expected to be delivered and announced within the next two weeks."""
DRILLING UPDATE ARQUEROS GOLD PROJECT
Laguna Resources NL is very pleased to announce that drilling is progressing well at the Arqueros Gold Project, in the northern sector of the World Class Maricunga Gold Belt in the Atacama Region of Chile.
The initial drilling programme commenced in late November 2009 and a total of thirteen RC holes has been completed for approximately 2,400 metres. The first batch of assays results are expected to be delivered and announced within the next two weeks.
The first phase of the current 10,000 metre drilling programme, comprising 4,240 metres in 20 holes, is on schedule to be completed towards the end of this year. This programme is already providing valuable information on the extent of mineralisation in the silver-rich mantos, and in the high grade gold-bearing structures. The latter are the principal host of the gold and typically range from 5 to 15 g/t gold over five to ten metres width.
Phase 1 drilling is being supported by a campaign of underground sampling of mineralisation exposed in development drives and accessible stopes currently underway. This programme is also progressing well with initial results expected to be available in the new year. The second phase of drilling totalling 6,000 metres, will commence in January 2010. This programme will focus on expanding the extent of the mineralisation and increasing resources in JORC Measured and Indicated categories.
A programme of diamond core drilling totalling 1,000 metres should shortly commence and will be targeted at providing geotechnical information and geological control data for the current mine plan scoping exercise. Project Highlights:
The Arqueros North and South deposits were mined from 2000 to 2004 with approximately 278,000 ounces of gold equivalent extracted at an average gold equivalent grade of 7.1 g/t gold.
Gold and silver mineralisation at Arqueros is located 20 kilometres north of the producing Kinross Gold Corporations La Coipa Gold Mine (225,000 ounces per annum of gold equivalent produced in 2008).
The Company has now commenced an open cut Base Case for the recommencement of mining at a rate of 100,000 to 120,000 ounces per annum of gold equivalent. This is based on an exploration target for the project of between 20 to 40 million tonnes at a grade of between 1.5 and 2.0 g/t gold equivalent for between one and two million ounces.
Regards, followme
LRC Price at posting:
$2.63 Sentiment: LT Buy Disclosure: Held
