Ambrosia yields low-grade gold

A 1,500-metre drill program by Sunshine Mining & Refining (SSC-N) has cut low-grade gold mineralization at the Aguas Calientes property in northwestern Argentina.

The 13-hole program, which focused on the Ambrosia zone, tested two north-striking zones of silicified and clay-altered breccias in dacitic volcanic tuffs. The Ambrosia zone occurs in the northern portion of the property and was tested by seven holes. Highlights include:

hole 1 — 24 metres grading 1.12 grams gold per tonne, starting at a down-hole depth of 32 metres;

hole 2 — 16.4 metres of 1.02 grams from 3.6 metres down-hole;

hole 3 — 15.4 metres of 1.22 grams from 3.6 metres down-hole;

hole 6 — 10 metres of 1.5 grams from 5 metres down-hole; and

hole 12 — 27 metres of 0.8 gram from surface and 10 metres of 0.7 gram from 95 metres down-hole.

The mineralization was encountered over a strike length of 200 metres and a dip length of 70 metres.

To the south, the Boulder zone comprises angular boulders of silicified volcanic breccia covering a 500-metre area. Previously, grab samples had returned up to 41 grams gold and 932 grams silver. Six holes were drilled into this zone, but no significant mineralization was encountered.

The Argentine subsidiary of Sunshine Mining can earn a 60% interest in the project from Mansfield Minerals (MDR-V) by spending US$2.5 million on exploration and paying US$1.2 million over four years.