Glamis cuts high grade at La Hamaca; Boka

Reverse-circulation drilling on the La Hamaca prospect in Guatemala has returned some impressive gold grades for owner Glamis Gold (GLG-T).

Results from the first 10 holes on the target include:

— Hole 1 — 5.2 metres of true width (beginning 141 metres below surface) grading 23.3 grams gold and 735 grams silver per tonne;

— Hole 2 — 0.9 metre (from 178.5 metres) grading 8 grams gold and 213 grams silver;

— Hole 4 — 2.6 metres (from 130.5 metres) of 31.3 grams gold and 1,240 grams silver; and

— Hole 9 — 3.2 metres (from 99 metres) averaging 13.8 grams gold and 373 grams silver.

The holes cut mineralization similar in grade and character to that encountered in the veins at the Marlin project, 3 km to the south. Initial metallurgical tests suggests the ore is amenable to conventional processing. Further tests are planned.

The drilling targeted a steep, east-west-trending quartz-calcite vein hosted by altered andesite. Drilling and outcrop sampling have outlined the vein along 280 metres of strike in an 800-metre-long gold-in-soil anomaly.

Seven reverse-circulation holes will further test the vein to the east, west and at depth. Drilling will also target several parallel structures 200 metres to the south.

Situated 3 km north of Glamis’s Marlin project, La Hamaca is the northernmost of five targets within a 6-km radius of Marlin.

For the balance of the year, Glamis intends to focus on other targets near Marlin, the geology, alteration and geochemical signatures of which are described as similar to those at La Hamaca.

Measured and indicated resources at Marlin total 53.9 million tonnes grading 1.7 gram gold and 24.4 grams silver per tonne. Glamis will develop the project as a combined open-pit and underground mine, with planned annual production of 217,000 oz. gold and 3.3 million oz. silver over 10 years. The price tag is estimated at US$120.3 million; first production is slated for early 2006.