Gold equivalency calculations are included to more clearly present the approximate value of the polymetallic mineralization at El Dovio. The gold equivalency for silver, copper and zinc are adjusted for the recovery rate of the respective metal. The recovery rates used are actual recoveries achieved on mineralization from the Sabana Blanca adit using conventional froth flotation as reported to the Company by McCllelan Laboratories, a prominent metallurgical laboratory based in Reno, Nevada. Recovery rates are as reported in the Company's press release of April 24, 2012, are 91.1% for silver, 97.8% for copper and 96.8% for zinc. In commenting on the flotation results, Mr. Gene McCllelan, principal of McCllelan Laboratories stated that "in more than 38 years of experience the El Dovio mineralization is some of the most responsive to flotation recovery that I have ever seen." Recoveries may be somewhat higher in actual practice because oxidation products seen in the adit that are known to reduce recovery by flotation methods are not observed in this hole and are not expected to occur widely in the zone of mineralization.
Discussion of Drilling Program and Results
The Phase I drilling program began drilling near the western most exposure of the Sabana Blanca zone near the Sabana Blanca adit where surface and underground sampling identified mineralization varying from 9 to 30 meters in estimated true width. The results of holes D13-01A and D13-02 (hole 1 and 2 respectively) corroborate this and importantly are showing lateral and vertical continuity of mineralization, a critical condition for future mine planning, design and production.
Drilling is planned to progress along trend to the east toward Trench number 2, located roughly 180 meters east of the Sabana Blanca adit. Surface, saw cut channel sampling in Trench 2 returned a composite interval of 68 meters averaging 4.7 g/T Au, 6.2 g/T Ag, 0.5% Cu and .5% Zn that contained a high grade sub-interval as reported in the Company's press release of May 11, 2011 averaging 58.6 g/T Au, 14.6 g/T Ag, 0.26% Cu and 0.81% Zn over 3 meters.
Hole D13-02 was drilled at an inclination of -45 degrees below horizontal at an azimuth of 210 degrees to a total depth of 190 meters with HQ diameter core utilizing the same platform as D13-01A. The mineralized intercept in D13-02 lies approximately 60 meters vertically below its surface collar location and 30 to 40 meters below outcropping mineralization. The mineralized intercept in hole 2 is at roughly the same elevation as the high grade intercept in D13-01A. These drill results corroborate results from the surface channel sampling and mapping, expand the known mineralization and continue to verify continuity of high grade mineralization both along strike and down dip in the Sabana Blanca zone.
Mineralization in D13-02, like that intersected in the first hole consists of multi-phased, coliform banded quartz, with locally abundant chalcopyrite, sphalerite and pyrite.
For the purposes of this press release the Company has not applied any "capping" or "top cutting" to the drill results. The presence of numerous high grade samples in the grade range of 30 to 104 g/T Au in the surface channel sampling results and the apparent continuity of high grades zones does not justify capping or top cutting at this time. The drill intercept lengths reported here, are the actual drilled length and may be longer than the true width of mineralization. At this point there is insufficient information as to the overall dip of the structure to estimate the true width in the drill holes. The Company will continue to assess the possible need for capping of high grade and the apparent true width of the mineralized system as sufficient data is developed.
Most Popular Stories
- 15 Myths That Could Ruin Your Hispanic Ad Campaign
- General Motors Names Mary Barra as First Female CEO
- Cold Dis-comfort: Antarctica Set Record of -135.8
- Obama Delivers Speech at Mandela Memorial: Transcript
- Uruguay Gets Ready for Legal Marijuana
- Oldaker Takes Center Stage at Entrepreneur Awards
- Slow Week Ahead of December FOMC Meeting
- Hispanics Seek to Grow School Board Members
- Russia Says Nyet to Canada North Pole Claim
- 'Knockout Game': Myth or Menace?