Following the completion of 42 drill holes and with a November payment of US$400,000 looming,
“The grade is not sufficient for Luicho to reach the critical number of ounces required for a potentially viable gold deposit,” states Chief Executive Officer Thomas Shrake.
A 3-year option agreement to acquire the property required a series of payments, including US$400,000 in November, US$1 million in November 2001 and US$24.2 million in November 2002.
The results from the first 19 holes not only revealed disappointing grades in the Central zone; they indicated that the gold mineralization was confined to a mere 25-metre portion of the upper sandstone unit.
Judging from the remaining holes, 20 through 42, the mineralization in the South zone averages a thickness of about 13 metres in the upper sandstone, with grades ranging from 0.38 to 0.89 gram gold per tonne. The best result was 16 metres of 2.71 grams in hole 21.
In the Northeast zone, sniffs of gold mineralization of less than a gram were found to depths of 250 metres below surface in a range of rock types. Better results included 66 metres of 0.95 gram gold starting from surface in hole 41, and 30 metres of 2.26 grams from surface in hole 42.
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