Greystar cuts more gold at Angostura

Greystar Resources (GSL-V) is continuing an aggressive in-fill drilling program at its wholly owned Angostura Gold Project in northeastern Colombia.

The Vancouver-based junior released the first drill results of 1998 at the project’s La Alta gold-silver deposit.

The new holes, 98-1 and 98-2, were collared about 60 metres south of holes 97-4 and 97-7, respectively. They cut through argillized, sericitized and silicified porphyry intercalated with minor lenses of gneiss. Both holes were mineralized from top to bottom.

At a depth of 160 metres, hole 98-1 intersected 34 metres grading 2.3 grams gold per tonne. This includes a 12-metre interval grading 5.4 grams gold per tonne.

At a depth of 255 metres, the hole intersected 17 metres grading 2.77 grams gold per tonne, including a 4.6-metre interval of 7.25 grams gold.

At a depth of 84 metres, hole 98-2 hit 20 metres grading 1.94 grams gold per tonne including a 3-metre section grading 10.32 grams. The same hole hit a 6-metre interval grading 6.36 grams at a depth of 142 metres.

The company has budgeted US$1.65 million for this year’s drilling program.

Greystar has also posted results from seven holes put down in late 1997.

These holes were drilled on 50-metre centres on previously untested ground.

Highlights include: Hole 97-1, which intersected 31 metres of 2.58 grams gold per tonne, including an 8-metre intercept grading 4.61 grams; hole 97-2, which hit 3 metres grading 5.01 grams gold per tonne; hole 97-3, which intersected 20 metres averaging 1.35 grams, including a 5-metre interval which ran 3.49 grams gold per tonne; and hole 97-7, which hit 16.5 metres grading 3.32 grams, including a 5-metre interval of 9.45 grams. Hole 97-6 hit mineralization at two depths: 13 metres grading 3.03 grams gold per tonne at a depth of 225 metres, including a 1.5-metre interval of 15.91 grams; and 30.7 metres grading 2.2 grams gold per tonne at a depth of 337.3 metres, including 8 metres of 5.37 grams.

To date, 27,136 metres of core from 112 drill holes have been pulled from the 1,750-ha site. Preliminary resource estimates have pegged the deposit at 34 million tonnes grading 1.65 grams gold per tonne, using a 0.5 gram cutoff. When the cutoff grade is lowered to 0.3 gram per tonne, the resource becomes 105 million tonnes grading 0.95 gram gold per tonne. The company expects to update the resource calculation next month.

Metallurgical test work performed by Metcon Research of Tucson, Ariz., indicated gold and silver recovery rates of 76.36% and 91.86%, respectively.

A 105.5-kg sample of unoxidized rock taken from the Fuego Verde tunnel at the southern end of La Alta assayed 3.86 grams gold per tonne and 29.87 grams silver and is considered to be representative of the southern portion of the deposit. The company envisages a heap leach scenario to keep production costs down.

In other news, Kinross Gold

(K-T) has acquired 19.95% of Greystar’s outstanding shares in a combination of private and open-market transactions. Greystar states that the move represents confirmation of the potential of the Angostura gold project.

Greystar has 52.1 million shares fully diluted and a working capital of $19 million.