Latin American extends Paso Yobai strike (March 03, 2008)

VANCOUVER — With results for all 2007 drill holes in hand, Latin American Minerals (LAT-V, LATNF-O) has confirmed the continuity of a gold-bearing structure along 1.3 km of strike at the company’s Paso Yobai property in Paraguay.

Of the 12 holes drilled in 2007, all but one intersected the gold-bearing structure. Nine holes intercepted veins and stockworks hosted in the mafic dyke or sandstone; five holes returned significant mineralization.

Hole 11 returned the most striking results, dispersed among two gold-bearing sections. The drill first hit a 4.6-metre segment from 88.2 metres depth grading 3.2 grams gold per tonne, including 1 metre of 10.7 grams gold. Then the core returned a 6.5-metre zone from 99 metres down-hole grading 26.6 grams gold, including 1 metre of 138.4 grams gold.

In hole 6, a 6-metre mineralized zone from 112 metres down-hole returned 15.3 grams gold, including 1 metre grading 37.9 grams gold. And hole 1 cut 10 metres grading 1.64 grams gold, including 2 metres of 5.96 grams gold.

There are no gold-producing mines within 2,000 km of Paso Yobai. The mineralized body is a low-sulphidation, alkali, epithermal system. Regional geology consists of subhorizontal coarse Permian sandstones intruded by northwest-oriented mafic dykes. Mineralization is made up of carbonate, quartz, and manganocalcite veins and stockwork developing inside dykes or near its contacts with sandstone. Bonanza gold zones occur where kaolin and smectite are found together.

Latin American’s share price more than doubled on news in December of visible gold in core samples from Paso Yobai. When the first set of assay results from those cores were released, the company’s share price fell considerably, likely because the news release did not make it clear that the metallic fire assays necessary to grade visible gold were not yet complete. With final results, including metallic assay numbers, out in late January Latin American’s price stabilized. It now sits at around 80.

During the first quarter of 2008, the roughly 3,000 metres of drilling remaining in the current program will test the strike 2.7 km to the northwest and 2.9 km to the southeast.

The company is earning a 70% interest in the project by making staged payments of US$2.1 million over three years, issuing 100,000 shares and spending US$500,000 on exploration over the first year.