Along with the Garrucha porphyry, the new property also brings new targets to our pipeline; we shall provide details on some of the new targets as the project moves forward. The cost for this exciting acquisition is only the direct investment in the exploration work required to delineate the new discoveries. It is important to note that the first year's work program under the new Agreement is already fully funded. We expect the first drilling to commence on the new concession by May."
The La Garrucha prospect holds considerable potential for high-value and near-term resource growth for Bellhaven. The Company has previously reported surface samples containing greater than 1.2 g/t Au and greater than 0.2% Cu in the area. The initial drilling on the western side of the target has also returned long intervals of continuous mineralization, including significant intervals with greater than 1.0 g/t Au and numerous samples with greater than 2.0 g/t Au.
Brad Yonaka, Vice President Exploration, remarked further on the technical implications of the Garrucha acquisition: "We have already produced very strong results from the La Garrucha area, and the heart of the target hasn't even been drill tested yet. Clearly the La Garrucha anomaly has the scale and intensity to be a priority for Bellhaven, since it is only 700m from our existing 2.6M oz of gold equivalent resources at La Cantera and Middle Zone. The necessary drill permits for drilling at La Garrucha are already in place. We intend to start drilling as soon as the soil sampling and initial mapping are complete."
Discussion of the La Garrucha Target
Gold and copper were first discovered in significant quantity at La Cantera in 2006. While only 700m away from La Garrucha, the initial drilling by the AngloGold - B2 Gold joint venture did not lead directly to the La Garrucha discovery. Bellhaven began systematically advancing the district in late 2010, arriving at La Garrucha by mid-2011. The southern end of the La Garrucha property lies between the La Mina concession and a pending exploration application made by Bellhaven. It, therefore, made sense for Bellhaven to acquire the AngloGold concession.
The magnetics anomaly at La Garrucha has long been tantalizing for explorers, but surface owners have not previously allowed access to the area for follow-up. After re-interpreting the magnetics data and adding a new layer of information with the ZTEM survey, it became apparent that the scale of the Garrucha anomaly was important. Nearby soil sampling and mapping also highlighted the fact that the core of the La Garrucha porphyry outcrops primarily to the east of the La Mina concession. In testing the geophysical and geochemical anomalies on the La Mina side of the system, Bellhaven drilling discovered strong gold and copper mineralization.
Six drill holes encountered significant mineralization on the fringe of the Garrucha system. These drill holes typically progressed from the weakly mineralized G1 porphyry, which envelops the the western part of the Garrucha system, into the well-mineralized G2 porphyry and breccia. These previously reported results included continuous mineralization over as much as 208m in drill hole LME-1096 (See Company news release dated Feb. 28, 2013). Prior to the La Garrucha drilling, such lengthy intercepts of strong gold and copper mineralization had only been encountered in the high-grade La Cantera deposit.
It is also significant that two of these holes ended in gold assays exceeding 1.0 g/t (LME-1047 and LME-1096). In fact, drill hole LME-1096 ended in nearly 11m of 1.10 g/t Au and 0.20% Cu or 1.40 g/t Au Equivalent. The last interval of that hole (near the concession boundary) assayed 2.2 g/t Au and 0.29% Cu or 2.66 g/t Au Equivalent (See Company news release dated Feb. 28, 2013). As Bellhaven geologists built the geologic model for the La Garrucha porphyry, the higher grades with depth correlated well with increasing alteration intensity. It is now apparent that the higher-grade mineralization is hosted by the G2 porphyry and breccia, which outcrops near the concession boundary and on the newly optioned La Garrucha concession (See Figure 3).
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