Strait Gold nestles into Peru’s golden area (November 30, 2006)

Location is everything in real estate that’s one thing Strait Gold (SRD-V) has going for it with its Culebrilla property in the Andes Mountains near Ancash, Peru.

Culebrilla is wedged between two of Barrick Gold‘s (ABX-T, ABX-N) best mines. The Pierina mine produced 628,000 oz. in 2005 and Lagunas Norte reached a record-setting 1 million oz. in 2006. One of the world’s largest gold mines, Newmont‘s (NEM-N, NMC-T) Yanacocha mine, is also along the same trend as Culebrilla.

Auspicious geography aside, the 68 sq. km. gold-silver-copper property has widespread mineralization.

Recent surface sampling uncovered grades up to 14.4 grams gold per tonne, 1,365 grams silver per tonne and 2.04% copper.

“They are by no means isolated,” says Strait Gold president Jim Borland. “We do have consistent values of well over 1 to 2 grams gold and silver over 100 grams throughout the property.”

The focus for now is on the former artisanal mining areas, Alalaj and nearby Culebrilla. Both had extensive surface showings: Alalaj had grades of 14.4 grams gold per tonne, 1220 grams silver per tonne, 2.01% copper and 0.19% zinc; and Culebrilla had grades 9.98 grams gold per tonne and 200 grams silver per tonne.

Right now the company is busy identifying targets for an eight-to-10-hole diamond drill program, regional reconnaissance mapping and stream sediment sampling to identify areas of unknown mineralization.

It’s also planning to do detailed bedrock mapping and a ground magnetic geophysical survey over a 2.5 by 1.5 km. grid.

Much of the sampling is being done at high altitudes. Alalaj is 4,500 metres above sea level.

“At this point there is simply a trail up horses can make it up easier than men and women can walking,” says Borland. “It’s an adventure going up there, I’ll tell ya.”

But Borland says it’s reasonable and the trek up won’t stop Strait Gold from taking a portable rig to the site to begin drilling.

“A road obviously is an expensive proposition but it does add a lot of other value to the property,” says Borland.

A gravel highway crosses the eastern part of the property, but that road is far from Strait Gold’s focus area.

There’s also a paved airstrip used by the nearby Antamina mine, which has been used by other companies, and power lines pass within 1 km. of the property.

The family that vended the property to Strait Gold has being going up to Culebrilla since the mid 90s. The property has never been drilled, though several small-scale producers have operated there in the past.

Strait Gold became a private company 2003 around the time when geologist and director Roger Moss discovered Culebrilla. Moss also helped discover AngloGold Ashanti‘s (AU-N, AGD-L, ANANO-J) Navichab mine in Namibia.

The company, based in Toronto, went public in late October of this year and currently has a market capital of $6 million with 15 million shares outstanding and 21 million fully diluted.