Vancouver – After two years of drilling Sinchao Metals (SMZ-V) has delineated a sizeable initial resource at its namesake copper-gold-silver project in Peru.
Inferred resources now stand at 237 million tonnes grading 0.47% copper, 0.49 gram gold per tonne, and 12.1 grams silver per tonne, using a 0.27% copper cut-off. At a 0.13% copper cut-off the resource grows to 416 million tonnes grading 0.36% copper, 0.33 gram gold, and 9.2 grams silver.
Mineralization at Sinchao is contained in two zones, known as Skarn and Breccia, which together stretch along 700 metres strike, across 500 metres width, and to 450 metres depth. The deposit remains open in all directions. Moreover, Sinchao Metals estimates that less than 30% of the prospective targets on the Sinchao property have been drill tested.
In the near term, the company is planning out a 5,000-metre drill program to confirm the extensions of the Breccia zone to the northwest and the Skarn zone to the southeast.
Sinchao is in northern Peru’s Cajamarca province and sits about 30 km from Newmont Mining‘s (NMC-T, NEM-N) Yanacocha deposit, which supports the largest gold mine in South America.
Andean American Mining (AAG-V)picked up the Sinchao property in 1996 and completed over 8,000 metres of drilling in a few years. Despite promising results work on the property was put on hold because of low metal prices. In 2006 the company spun the property out into a Sinchao Metals; Andean American owns 67% of the junior.
On news of the resource estimate Sinchao’s share price gained 4 to close at 10. The company has a 52-week trading range of 5.5 to $1.05 and has 70.1 million shares issued.
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