Candelaria check assays prove disappointing for Rio Amarillo

Check assays on core from the Candelaria copper prospect in Peru have failed to improve upon previous results.

Property owner Rio Amarillo (VSE) sent samples from the secondary enriched zone of six drill holes to Vancouver for re-assaying after releasing results from only one hole on Feb. 28.

The junior deemed the check assays necessary after initial results came in substantially below visual estimates made by the company and several independent mining groups.

Check assays returned the following: 26.5 metres grading 0.24% copper in Hole I-6; 102.2 metres grading 1.57% in K-8; 51.6 metres grading 0.45% in M-8; 34.2 metres grading 0.25% in G-12; 60.8 metres grading 0.17% in I-12; and 66.7 metres grading 0.25% in K-12.

Previously, only results from Hole K-8 had been released, sending the share price reeling after the other holes failed to meet expectations. The issue plunged 78 cents to $1.27 soon after the results became public. Rio is re-evaluating the data from the drill holes, as well as surface geology, before deciding on its property option.

Meanwhile, the company has signed a 4-year purchase option on the Mandesa gold concession in the Nambija district of Ecuador. The 28-sq.-km property is only 1.5 km from the discovery claim of the district.

Gold mineralization in the area is hosted in garnet skarn bodies, with grades averaging 15-50 grams gold per tonne. Rio is planning line cutting, geochemistry and geophysics in an effort to locate drill targets.