La Patria likely to get bigger Wednesday, 17 January 2007 Rebecca Lawson
FOLLOWING the release of its inferred resource estimate at its La Patria project in Mexico, Bolnisi Gold will be looking to boost the estimate, after receiving more "impressive" drill results.
Located in Chihuahua state, La Patria's initial inferred resource estimate stands at 171,000oz of gold and 4.03 million ounces of silver, or 244,300oz of gold equivalent at a gold to silver price ratio of 1:55.
The estimate applied a 0.8 gram per tonne gold equivalent cut-off and did not include results from the balance of holes drilled last year.
Bolnisi said the estimate included all mineralisation "between present-day topography and an identical surface created 200m lower, as an approximation of material potentially available for openpit extraction".
"Approximately 10,000oz gold [equivalent] in the model remain below the reported resources in this estimate," Bolnisi said.
Meanwhile, the company has received assays from the balance of holes drilled last year after the release of the initial inferred resource estimate, which the company said will be included in the next resource calculation.
Better results from drilling include 24m at 3.57gpt gold and 43gpt silver from 167m, 27.43m at 2.85gpt gold and 66gpt silver from 64m, and 16.76m at 3.62gpt gold and 152gpt silver from 68.6m.
Bolnisi said several holes drilled at the La Virginia prospect, within La Patria, encountered wide zones of moderate-to-high grade mineralisation close to surface.
Additionally, assays from both reverse circulation and diamond drilling further confirm "continuity of moderate-to-high grades of La Virginia extending from surface to vertical depths in excess of 200m", and indicate the prospect is open downdip and along strike.
Furthermore, holes drilled northwest along strike of the La Patria workings indicated the structure remains open and well mineralised along this direction.
Overall, 55 reverse circulation and 19 diamond core holes have been drilled at La Patria since the beginning of last year.
Shares in Bolnisi gained 4c to close at $2.89 on news of the initial inferred resource estimate, and the stock has since shed 8c this morning on news of the "impressive" drill results.
Click here to read the rest of today's news stories.
BSG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
