Vancouver — Still smarting from disappointing drill results at the Luicho gold property in Peru,
Gold miner
The major spent US$17 million exploring the project and was earning a 70% stake. Under the terms of the deal, Barrick had to spend US$4 million annually until a positive production decision was made. Although the agreement provided for a nominal buy-back provision in the event Barrick did not meet these commitments, the company declined to extend its option.
The 36-sq.-km property hosts several silver-rich “high-sulphidation” epithermal occurrences, including the Oculto target, which has been drill-tested by 151 reverse-circulation and 41 diamond drill holes.
At last count, Oculto held an inferred geological resource of 30 million tonnes averaging 93 grams silver and 0.6 gram gold per tonne, based on a cutoff grade of 0.8 gram gold-equivalent per tonne. Metallurgical work indicates lower-than-expected recoveries from column leach tests, suggesting that the deposit may not be amenable to heap leaching.
Barrick last worked the project in August 1999, when the company completed a 5-hole program of diamond drilling aimed at determining potential silver loss in the reverse-circulation holes at Oculto. The results of this program proved inconclusive.
The junior believes the property has potential for additional gold-silver mineralization. Most notable is the Laderas target, which lies 500 metres north of Oculto.
Cash-rich Pacific Rim is looking for a new project. In response to poor drill results, the company dropped the highly touted Luicho gold property in Southern Peru last October.
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