Discussion of the Drill-Hole Results
The El Limon holes (LME-1084 to -1088) added considerable understanding of the complex intrusive rocks and breccias at El Limon (Figure 1). The geologists noted significant alteration over long intervals in these holes, but the intensity of mineralization remains lower than at Middle Zone and La Cantera.
The two El Limon holes with significant mineralized intervals (LME-1084 and -1085) are oriented N45W and collared approximately 100m apart on the west side of a previously noted gold and copper soil anomaly (Figures 2 and 3). The gold intercepts in those holes coincide well with the soil anomalies. While these intercepts improve upon the previously reported mineralization in LMDDH-021 (see Company news release dated April 20, 2011), later drill holes (LME-1086, -1087, and -1088) collared to the southwest did not improve upon the grade and thickness of the El Limon mineralization.
The reported high-grade silver interval in LME-1084 (1.5m at 448 g/t Ag) is associated with veinlets and brecciation including molybdenite, chalcopyrite, and possibly scheelite. This style of mineralization has been reported from the Middle Zone and La Cantera mineral systems and is thought to post-date the Au-Cu porphyry mineralization.
Based on the strong alteration observed in LME-1084, drill holes LME-1086, LME-1087, and LME-1088 were collared approximately 50m to the southwest. LME-1086 was drilled parallel to LME-1084; while LME-1087 was drilled at S45E (towards the Middle Zone) from the same platform as LME-1086. These holes encountered anomalous gold near surface, but the grade did not persist to depth (Figure 4). The geologists collared LME-1088 on the same platform but directed it S45W (Figure 5). Although this hole delivered anomalous metal values and thus helped to explain the soil anomaly, the overall intercept was below cutoff grade.
Two holes, LME-1089 and LME-1092, were the first to test an area west of the Middle Zone resource known to have historical gold workings (Figure 6). These workings reportedly included extensive development along a northeast-trending adit. The exact extent of the adit is unknown, and the entrance is now collapsed. However, locally acquired information indicates that it was in operation periodically from the 1920's to about 1970. Miners describe gold-rich shear zone oriented close to N45E. Soil anomalies in Au, As, Cu, Ag, Pb, and Sb confirm a northeasterly trend as well.
Hole LME-1089 was drilled from the NW side of the Adit Target at a bearing of S45E (cross section to be completed after receipt of assays for LME 1091). Hole LME-1092 was drilled due north from the SE side of the adit (Figure 7). These holes encountered several narrow intervals of veining, including silver assays ranging from 37 to 299 g/t and zinc assays approaching 1% over short intervals. Gold was also anomalous over a number of intervals. The veins in this area are geochemically similar to the high-grade silver veins encountered elsewhere on the project.
Hole LME-1090 is located at the same collar as LME-1092, but plunges N45E into a deep part of Middle Zone (Figure 8). It was positioned to fill a gap in the block model for this area. Results confirm the lithological transition from older volcanic rocks to the copper-rich X1 unit in this area. It exhibits a significant interval at depth, supported by high copper.
Table 2 - Drill Hole Location Data from this news release for La Mina Gold- (Copper) Project, Colombia East North Azimuth Plunge TotalHole UTM UTM Elevation (deg- (deg- LengthNumber Coordinate Coordinate (m.a.s.l.) rees) rees) (metres) ProspectLME-1084 419026.66 655487.08 1986.53 315 -55 333.75 El LimonLME-1085 419026.95 655593.22 1917.00 315 -50 353.56 El LimonLME-1086 418981.98 655450.14 1994.02 315 -51 284.98 El LimonLME-1087 418984.24 655447.90 1993.80 135 -65 181.35 El LimonLME-1088 418981.84 655448.59 1994.04 225 -51 152.70 El Limon AditLME-1089 418694.04 655043.48 1793.81 135 -51 297.18 Target MiddleLME-1090 418797.95 654904.12 1774.21 045 -64 596.79 Zone AditLME-1092 418796.72 654905.36 1773.63 000 -48 446.53 Targetm.a.s.l. = metres above sea level