Las Huaquillas yields mixed results — Junior also signs deal to acquire Newfoundland gold property

Sulliden Exploration (SUE-M) has received mixed results from the latest six holes drilled at its Las Huaquillas property in the Cajamarca department of northern Peru.

All six were collared in the San Antonio sector, with one testing the vertical extent of mineralization intersected by one hole drilled in 1997 — 110.7 metres averaging 0.38% copper and 0.36 gram gold per tonne. The remainder were collared to the north and northwest in an effort to follow-up on soil and trench sampling.

Of the six, only vertically drilled hole 21 returned favorable results, with 198.9 metres (1-199.9 metres) averaging 0.12% copper, 0.2 gram gold and 0.9 gram silver. Reported intersections for the remaining holes were between 218 and 274 metres in core length, though all contained only trace amounts of gold, 0.2-1.4 grams silver and 0.8-0.1% copper.

Sulliden attributes the poorer results to an error in predicting the contact between the favorable diorite and overlying andesites when siting three of the inclined holes, but says they are indicative of a large mineralizing system. The hole that did intersect diorite was collared about 250 metres west-northwest of hole 21, returning 221.7 metres averaging 0.2 gram silver and 0.08% copper.

Sulliden is compiling its data and hopes to attract joint-venture offers. Toward that end, it intends to double the current size of property by acquiring adjoining ground.

Meanwhile, Sulliden has signed a deal with Altius Minerals (ALS-A) to acquire a half-interest in that company’s Rolling Pond gold property in central Newfoundland. To do so, Sulliden must spend $450,000 on exploration over the next three years. An additional $1 million in expenditures plus either a cash payment of $250,000 or the issuance of 500,000 shares earns the company a further 10%.

Rolling Pond comprises 1,175 ha and is situated 50 km southeast of Grand Falls. Exploration completed so far has outlined a 1-km-long-by-350-metre-wide zone containing alteration patterns with anomalous gold and pathfinder elements indicative of an epithermal mineralizing environment. Observed textures in outcrop include massive silicification, multi-stage brecciation and veining, including comb structures.

Geophysical surveys and diamond drilling will begin shortly.