Ecuadorian firms up Gaby and Cerro Pelado deposits

Ecuadorian Minerals (EMC-T) has completed a 47-hole program of infill drilling on the Gaby gold property in Ecuador.

The 11,717-metre program, part of a prefeasibility study, tested a large gold geochemical anomaly.

(Results obtained earlier this year were recently re-assayed, showing a 2-3% increase over initial values.)

A program of 30 core drill holes totalling 8,438 metres on the main Gaby deposit confirmed the presence of a gold-mineralized zone outlined earlier.

The drilling also points to an extension of mineralization to the west. The structure remains open to the northwest of drill holes CAL-3 and CAL-6, and additional drilling is planned.

Earlier work outlined three near-surface gold centres, the grades of which average 15-65% higher than that of the overall deposit grade. Plans call for these centres to be mined during the first two years of production.

The latest figures suggest that the Gaby deposit contains 120 million tons grading 0.03 oz. gold per ton.

The overall economics of the project were recently boosted by metallurgical test results suggesting gold recoveries of about 87%; this represents a 6% increase from levels reported in April.

Prefeasibility work will continue over the next 3-4 months. Meanwhile, the company will carry on with a preliminary, 17-hole satellite drill program over a 5.5-by-1.7-km geochemical anomaly surrounding the main Gaby deposit.

Previous work here outlined widespread areas of low-grade gold mineralization.

The program has also outlined a high-grade, gold-bearing shear zone 400 metres east of the main deposit. Known as Tama, the zone trends north-south and, thus far, has been tested by only three holes and by surface sampling.

The structure has been identified over a strike length of 600 metres and remains open at each end. Drilling has returned values of up to 23 grams gold over 2 metres. The highest-grade surface rock sample obtained over the zone also runs 23 grams gold.

Meanwhile, at the Cerro Pelado project, also in Ecuador, the first phase of drilling on the Viejo area has wound down. The program comprised 12 shallow core holes over 1,540 metres.

Hole 1 intersected 22 metres grading 1.28 gram gold, including 6 metres grading 2.22 grams and 6 metres at 1.56 grams. Mineralization is open to the south, east and west.

Hole 3 intercepted 6 metres grading 0.83 gram and 18 metres of 0.93 gram, with mineralization open laterally. Hole 10 intercepted 8 metres grading 1.15 gram, with mineralization open to the south and at depth. That hole bottomed in mineralization, grading 2.19 grams.