At its gold project in northern Uruguay, American Resource (NASDAQ) is drilling some 50 core holes in an attempt to expand and upgrade reserves.
The work is focused on the San Gregorio property, which covers a small portion of the company’s 122,400-hectare land package in the country. Reserves at the property are estimated at 5.6 million tons grading 0.076 oz. gold per ton, or 420,933 contained ounces.
The US$30-35-million project is expected to start up by early 1997 and produce 68,000 oz. annually over its projected 8-year mine life.
The company is also drill-testing several exploration targets within a 3-km radius of San Gregorio. The first 12 core holes at the Santa Teresa West target have confirmed the presence of a mineralized shear zone with a strike length of 250 metres and a depth of 50 metres.
The limits of mineralization have not been fully defined, and may be continuous with the San Gregorio shear zone, to the west.
A larger mineral tenement, to the east, is largely unexplored and has been set aside for possible joint-venture proposals.
American Resource remains committed to exploring the potential of Uruguay’s greenstone belt. Near the city of San Jose, it operates the Mahoma open-pit gold mine.
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