NDT encouraged by Antana results

A first pass of drilling at the Antana gold prospect in southern Peru has returned some highly encouraging numbers for NDT Ventures (NDE-V), including 86 metres grading 1.46 grams gold per tonne.

NDT tested a 300-metre strike length of an intrusive-related gold system with 16 reverse-circulation drill holes totaling 1,671 metres. President Fred Hewett says the initial drilling confirms the width and potential grade of the system and, more importantly, shows that the mineralization extends to depth. The company views Antana as a potential bulk-tonnage target.

The Antana project lies 80 km northeast of the city of Juliaca and comprises 40 sq. km at elevations ranging from 3,800 to 4,200 metres above sea level. The property is accessible by road and close to power.

In July 2000, NDT signed an option agreement to acquire an 80% interest in Antana from Compania Minera Solimana, a private Peruvian company. To earn an initial half-interest, NDT must make cash payments totaling US$1.2 million and spend US$2.2 million on exploration over four years, plus purchase 30% of the recoverable gold ounces at US$10 per oz., as defined by a feasibility study. NDT can increase its interest to 80% by arranging financing for the project and by purchasing an additional 25% of the recoverable gold ounces at US$8 per oz.

Mineralization is disseminated, and hosted in a sub-volcanic rhyodacite intrusive. Gold mineralization is associated with silica in areas dissected by a network of silica stockwork stringers and/or pervasive volatile flooding.

The mineralized intrusive forms a topographically distinct, northwest-striking ridge about 3 km long; it drops off to narrow valleys on both sides. A carbonaceous shale flanks the rhyodacite. Along this contact are numerous historic mine workings that exploited small, high-grade veins and breccias of antimony.

NDT conducted initial panel sampling on the Antana Ridge zone, where the rhyodacite outcrops over an area measuring 1,000 by 400 metres. Within the exposed area, 37 widely spaced chip samples averaged 1.15 grams gold per tonne, with a high of 3.79 grams.

To define the continuity of the gold mineralization in the outcropping rhyodacite, NDT completed a series of channels at 50-metre spacings perpendicular to the system’s strike. This phase of sampling showed the mineralization to be consistent over a strike length of 500 metres and still open, with results of up to 1.39 grams across 82 metres, including 2.04 grams over 22 metres.

The initial drilling was also conducted on 50-metre sections. It shows that the northwest-striking rhyodacite dips to the northeast at 10-20 and steepens to the southeast to about 40. Over a strike length of 250 metres, the true thickness of the rhyodacite varies from 44 to 108 metres.

Hole 14, the most southeastern hole, intersected 108 metres of rhyodacite that contained a 42-metre zone grading 1.69 grams gold. Channel-sampling in the vicinity of the hole’s collar had yielded 12 metres of 2.48 grams and 22 metres of 1.04 grams. Hole 3, collared about 100 metres west of hole 14, cut 86 metres grading 1.46 grams (including 46 metres of 2.05 grams). Hole 9, spotted between holes 3 and 14, cut two mineralized zones that, when combined, total 72 metres grading 1.81 grams.

NDT says that locally, downdip from outcrop exposures, there are multiple zones of mineralized rhyodacite separated by lenses of black shale, suggesting that the main rhyodacite splits or has produced offshoots. Drilling has also identified blocks of black shale within the rhyodacite. In some areas, the downdip continuity of the intrusive is poorly understood, and additional drilling will be required to define possible fault offsets and irregularities in the geometry of the intrusive.

Preliminary bottle-roll testing was carried out during the summer on 32 surface samples. Initial tests indicate that the mineralization is amenable to heap-leaching, yielding gold recoveries in the range of 72.3-97.8%, for an average of 89.1%.

The company will carry out a preliminary scoping study to assess the project’s economic potential.

NDT has about $3 million in its treasury, with 25.6 million shares outstanding, or 26.7 million fully diluted.

A summary of the drill results by section, beginning from the northeast to the southwest, are shown in the table below.