Ecudorian pushes ahead at Gaby

Prefeasibility work is confirming the potential of the Gaby gold porphyry joint venture in Ecuador, reports Ecuadorian Minerals (ASE).

The company can earn a 35% interest in any oxide resource outlined and a half interest in any underlying sulphides by carrying out feasibility studies for both. The agreement includes work commitments of US$1 million and staged property payments totaling US$3 million.

James Kasten, a spokesman for the company, says work is concentrating on the sulphide material because its size is much larger than the oxide resource, which extends only to 50-75 ft. in depth.

Ecuadorian has completed a 33,000-ft. reverse circulation drilling program, outlining the main body of a horseshoe-shaped mineralized structure measuring 3,200 ft. long and averaging 300 ft. in width.

The drilling encountered gold mineralization over a vertical column exceeding 1,200 ft. and the deposit remains open at depth and in several directions horizontally.

Selected results from the recent drilling include: 125 ft. from 472 to 597 ft. grading 0.092 oz. gold per ton in Hole 143; 354 ft. from 151 to 505 ft. grading 0.053 oz. in Hole 146; and 328 ft. from surface to

328 ft. grading 0.031 oz. in Hole 172.

Work is continuing, with 20,000 ft. of core drilling evaluating the main deposit further.

A resource estimate has yet to be formulated, but the company expects the main deposit to exceed 50 million tons grading in the region of 0.03 oz. gold. Ecuadorian plans to carry out a prefeasibility study by mid-summer, 1995. The company is well-funded, with about $6.5 million in working capital and 16.7 million shares outstanding (21.5 million fully diluted).