Sulliden targets oxides at Shahuindo

Preliminary drilling at the Shahuindo epithermal gold-silver property in north-central Peru has turned up new targets for Sulliden Exploration (SUE-T).

In the late 1980s, Shahuindo was the site of small-scale, vat-leaching gold operation and in the following decade by a modern exploration camp of Asarco. The major, which packed up during its takeover by Grupo Mexico in 1999, spent US$4 million to outline 29.4 million tonnes of oxides in the San Jose zone, averaging 0.88 gram gold and 16.2 grams silver per tonne.

Following up that earlier work, Sulliden’s recent campaign included 3,450 metres in 27 holes. Most were aimed at a possible extension to San Jose but instead resulted in the discovery of the so-called Breccia zone.

The best results came from hole 9, which cut 52 metres of 2.14 grams gold and 85 grams silver, starting at surface. About 150 metres to the northeast, hole 8 yielded 1.49 grams gold and 159 grams silver over 65.4 metres, starting at 37 metres down-hole.

Four other holes intersected the zone, yielding upwards of 2.17 grams gold and 97 grams silver, which was averaged over 52.5 metres. Combined, the results trace a zone some 500 metres in strike length.

Drilling also highlighted several new prospects for follow-up investigation. The West and South Contact targets display similar characteristics to San Jose, whereas the East prospect is more silicified than argillized, as well as being located on the south side of a fault that truncates San Jose’s southeastern limit.

At the West area, hole 16 averaged 0.95 gram gold and 2 grams silver over 30 metres, including 2.61 grams gold and 6 grams silver over the final 7.5 metres. Similarly, the South Contact prospect averaged 1.02 grams over 22.5 metres of hole 22, starting at surface, as well as 0.52 gram gold and 1.6 grams silver over 42 metres, starting 57 metres down-hole.

The East target yielded 1.49 grams gold and 13.8 grams silver over 69 metres of hole 24, starting from surface. Hole 25 returned three separate mineralized intervals: 24 metres of 0.32 gram gold and 5.6 grams silver, 4.5 metres of 0.42 gram gold and 1.3 grams silver and 8 metres of 0.49 gram gold and 12.4 grams silver.

Less than half a gram of gold and a gram of silver was yielded from each of two holes sunk in the Cerro Redondo area, which lies south of San Jose, near the fault-offsetted intrusive body with which it contacts.

Two holes drilled into the porphyry averaged 0.87 gram gold and 9 grams silver over 36 metres and 0.62 gram gold and 6.4 grams silver over 45 metres. The former began 21 metres down-hole and the latter, at surface.

Geochemical and geophysical surveying continues in preparation for a second phase of drilling. That campaign is expected to begin in 6-8 weeks, assuming the Peruvian government accepts an environmental impact statement that is now being prepared.