Assay results have been received from two of the four drill holes planned to test for parallel veins in the footwall zone. One of the two drill holes intercepted gold mineralisation in the footwall, an intercept of 0.55m (0.3m true width) at 1.70g/t gold in drill hole LIDC193 located in the footwall approximately 180m across strike from the La India mine workings. This footwall vein is interpreted as the down-dip extension of a near vertical vein that crops out at the top of the hill behind the historic mine workings where it has similar width.
Table 3. Significant drill intercepts for the latest 12 drill holes for 1901m of the current drill programme on the India-California veins.
To view Table 3, please visit the following link: http://media3.marketwire.com/docs/Table%203.pdf.
America Vein Set
Twenty-eight drill holes for 2,664m, including 17 reverse circulation (RC) drill holes for 1,360m, out of a 4,000m drilling programme on the America Vein Set have been completed. The drilling programme is designed to test for remnant wallrock gold mineralisation on the historic America Mine workings. Assay results have been received for 21 drill holes for 1,842m (see Table 4 below). Additional trenching has been carried out at the intersection of the America, Escondido and Constancia veins in order to better understand the geometry of the gold mineralisation in this zone where multiple gold mineralised veins have a number of different orientations.
The America Vein Set currently contains a mineral resource of 2.11Mt at 6.0g/t for 405,000 oz gold, of which 288,000 oz gold is on the interconnected America-Constancia-Escondido veins, including 480kt at 7.8g/t for 120,000 oz gold in the Indicated category (Figure 1 below). The Indicated Resource is contained within and as extensions of the historic mine workings and is based largely on historic underground channel sampling which was restricted to the high-grade core of the veins that was historically targeted for mining. At the time of the last resource estimation an absence of drilling and trench sampling in the wallrock of the historic mine workings meant that no remnant gold was included in the current resource estimation. Recent trench sampling has demonstrated that there are significant zones of moderate to high-grade gold mineralisation remaining in the wallrock (see RNS announcement dated 30th November 2012).
The additional trenching, which was carried out using a mechanical excavator, and initial drilling has demonstrated that the moderate (50 degrees -60 degrees ) dipping America and Escondido veins formed along two edges of an upthrown block. The steeper dipping Constancia Vein formed along a related structure bounding an adjacent block. The widest trench and drill intercepts to date; 6.8m at 3.59g/t gold in trench LITR158 and 4.65m (4.4m true width) at 6.11g/t gold in drill hole LIDC179 have been returned from the axis of the flexure between the America and Escondido veins. Strike continuity around the flexure is demonstrated by an intercept of 5.0m (4.9m true width) at 3.11g/t gold from 50m along strike on the America Vein side in drill hole LIRC207. In addition multiple close-spaced narrower veins have been intersected where the Constancia Vein intersects this flexure. Further drilling is currently underway to better define the gold distribution in this structurally complex zone.
Further along strike to the northwest drilling has confirmed remnant gold mineralisation in the wallrock of the historic America mine workings with 50m spaced drilling intersecting both high-grade shoots and low grade zones, with a best intercept of 3m (2.8m true width) at 5.67g/t gold open to depth in drill hole LIRC190 returned to date.
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