La Mancha drills Hualilan in Argentina

A first-phase exploration program by La Mancha Resources () is testing known and newly identified targets at the Hualilan gold-silver-zinc project on the Argentine side of the El Indio mining district.

Hualilan has an exploration history dating back to pre-colonial times, and intermittent production under the Spaniards from 1561 until 1840. Since then, numerous individuals and companies have carried out exploration and achieved limited production. In 2002, a previous operator transported an 800-tonne-per-day flotation plant to the site, where it awaits re-assembly.

At last report, Hualilan hosted a measured and indicated resource of 444,500 tonnes averaging 14.59 grams gold-equivalent per tonne, plus an inferred resource of 976,500 tonnes averaging 13.37 grams gold-equivalent. Gold accounts for about 97% of the metal value of these resources, the remainder being silver.

La Mancha’s exploration program is aimed at confirming, expanding and upgrading existing resources to a minable inventory, with a view to restarting production. Drilling to date has tested four of six zones with known resources.

The property is believed to have considerable exploration potential. Numerous showings have been found over an area measuring 4 by 0.5 km and within two main mineralized areas, Cerro Norte and Cerro Sur, separated by a fault structure. A geophysical program was carried out to enable the “imaging” of fault zones at depth, and to locate structural features that host mineralization.

One of the highlights of the current program was a near-surface discovery at Sentazon Manto. Drilling of this target returned one of the highest-grade intervals to date, namely 1.2 metres averaging 46.3 grams gold and 1,170 grams silver per tonne, plus 0.44% zinc.

Other targets tested include the Magnata target. Two holes were drilled here, one of which returned low-grade values. The best intervals from the other hole are: 0.85 metre of 3.15 grams gold and 39.7 grams silver per tonne, plus 0.43% zinc; 0.8 metre of 0.93 gram gold, 34.9 grams silver and 4.46% zinc; and 1.1 metres of 0.03 gram gold, 6.9 grams silver and 2.21% zinc.

The best intervals from the Muchilera manto are: 1.05 metres of 5.3 grams gold, 54 grams silver and 3.44% zinc, and 0.75 metre of 0.2 gram gold, 35.8 grams silver and 0.14% zinc.

Two holes drilled to test the Main Manto returned variable results that La Mancha says are typical of this style of deposit. One returned 6.85 metres of 4.03 grams gold, 4.48 grams silver, and 0.64% zinc, while the other, 0.6-metre interval averaged 8.44 grams gold, 16.7 grams silver and 0.12% zinc.

Drilling has revealed considerable variation in grades, though La Mancha says this was anticipated. It adds that the frequency of mineralized intercepts encountered in recent drilling “is consistent with historical averages.”