Vancouver – Surface trenching by Petaquilla Minerals (PTQ-T) on its Molejon project, in north-central Panama, continues to return high-grade gold values.
On the 244 area, trench 205B returned 51.5 metres grading 16.9 grams gold per tonne, including 25.4 metres of 28.3 grams gold. Two consecutive 1.5-metre intervals in the trench averaged 106.1 grams gold and 101.3 grams gold respectively.
The 244 area is defined by a silicified hill, about 45 metres in diameter, located in the Molejon Main zone. A single drill hole by Teck Cominco (TEK-T) in 1994 intersected 30 metres of intense, pervasive silica and quartz breccia returning 8.5 metres of 21.1 grams gold in a vertical hole with poor core recovery.
The trenching on 244 indicates it is completely mineralized and shows good extension potential to the northwest and southeast.
Additional sampling on the Central, Main and Northwest zones have successfully tested extensions to know mineralization. The three zones compose the area reviewed in a 1995 study where SRK Consulting reported a probable open pit resource of 5 million tonnes grading 2.8 grams gold plus an additional 956,000 tonnes of possible resource at 3.7 grams gold at Molejon. This equates to about 570,000 oz. of contained gold in the epithermal deposit. The study was conducted prior to implementation of National Instrument 43-101.
Petaquilla plans a drill program to test depth potential of the zones, enroute to a revised resource estimate.
The company, previously known as Adrian Resources, recently formalized its Letter of Intent (LOI) with partners Inmet Mining (IMN-T) and Teck Cominco to acquire 100% interest in the Molejon gold deposit, subject to royalties.
Molejon forms a portion of the 135 sq. km Minera Petaquilla project area, in which Petaquilla Minerals holds a 52% interest and Inmet holding 48%. Teck Cominco has an option to earn half of Petaquilla’s interest by completing a final feasibility study (done in 1998) and funding the company’s entire share of costs to place the main copper project into production.
With 51.5 million shares outstanding, Petaquilla Minerals posts a $25 million market capitalization at its recent trading level of 49 per share.
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