Capella cuts 105 metres of 1.59 gram gold at Lajitas

Capella Resources (KPS-V) has intersected 105 metres of 1.59 gram gold per tonne in a drill hole on its Lajitas project in the Maricunga district of the Andes of northern Chile. The intercept starts at a depth of 142 metres and ends at 247 metres down hole.

The intercept is part of a 261 metre intercept grading 0.91 gram gold per tonne, from a depth of 90 metres to 351 metres down hole.

The hole was drilled at an angle of -60 degrees into an induced polarization anomaly 1.8 km in diameter. True widths of the intercepts are not known.

The hole, numbered LJ-08011, was drilled to a 483 metre depth, in a series of three holes totaling 1,330 metres. The other two holes returned anomalous gold and copper mineralization, but with much lower grades. Distances between holes are at least 500 metres. The 3-hole drilling campaign has now ended.

The system is characterized as porphyry gold-copper mineralization. The intercept is hosted in oxidized andesitic volcano-clastic and dacitic intrusive rocks that are variably altered with iron oxides, clay, and silica. The host rocks exhibit some of the deepest oxidation known in the Maricunga.

Capella believes that the hole encountered mineralization both in the dacitic intrusive rock, part of the primary porphyry system, and in the andesitic volcanic rock. However, this interpretation is preliminary because the rock is extremely altered and all oxidized, so rock types cannot be easily determined. No sulphides have been encountered in the intercept.

The best copper intercept in the hole measured 33 metres of 0.15% copper between 294 metres and 327 metres down hole.

Groundwater was also encountered on the project, and Capella is planning to apply for water rights.

Lajitas covers 16 sq. km. It is about 12 km southeast of the Lobo-Marte project, recently acquired by Kinross Gold (K-T, KGC-N), and 18 km east of Andina Minerals’ (ADM-V) Volcan project. Elevations range between 4,200-4,500 metres.

Lajitas is subject to a 5% net smelter return (NSR) royalty, of which 3% can be bought for US$3 million.

The project is northeast of the city of Copiapo. Driving time is 3.5 hours. It is 7 km from the border with Argentina.

Capella also owns a second project in the Maricunga, the 19 sq. km Nevada project, immediately to the north of Exeter Resource’s (XRC-V, XRA-X) Caspiche project, and 10 km south of Kinross’ Maricunga mine. The company has identified an induced polarization anomaly on the property, about 4.5 km from the centre of Caspiche. Capella is planning to drill three 500-metre holes on the Nevada project in April.

In March, Capella raised $776,000 in a private placement. The company has a $400,000 debt outstanding, repayable in June.

The company has about 23.5 million shares issued, or 37.5 million shares fully diluted. On news of the intercept, Capella shares rose 6¢ to 28¢, with 26,000 shares changing hands. The shares have been trading in a 3¢-$1.70 range over the past 12 months.