As Petaquilla Minerals (PTQ-T) gets set to bring its Molejon gold project in Panama into production this year, the latest drill program has given the company a better understanding of the deposit and will enable it to upgrade the resource.
New drill data complements the previous work and will allow the company to upgrade inferred and indicated resources to indicated and measured, respectively. Petaquilla says that the results have also verified the geologic interpretation of the high grade shell and have allowed the company to include a previously undrilled region in the model.
Petaquilla also found that drill holes that did not intercept mineralization were near the perimeter of the deposit.
Highlights from drilling include 8.8 metres grading 5.06 grams gold per tonne, 12.5 metres grading 9.99 grams gold per tonne and 20 metres grading 3.5 grams gold per tonne.
Petaquilla is also in the middle of a field mapping and surface sampling program at its nearby Lata prospect where diamond drilling has just begun.
Some surface sample returned such grades as 11.7 grams gold per tonne, 8.24 grams gold per tonne and 2.02 grams gold per tonne.
The company says the surface samples show a northwest trending structure that projects to the south toward Molejon and confirms the district geological interpretation.
Petaquilla is also in the middle of a 260 line km induced polarlization geophysics program, which is about 30% complete.
The latest measured resources at Molejon total 593,000 oz. gold while indicated resources are 318,000 oz. gold and inferred resources stand at 459,000 oz. gold.
The company is in the midst of building a 2,200 tonne-per-day carbon-in-leach plant but is considering upgrading it to 5,000 tonnes per day depending on improved resources. Petaquilla is looking at producing 120,000 oz. gold per year at a cash cost of US$200 per oz.
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