Until recently, the southwestern zone of Petaquilla Minerals (PTQ-T) Molejon gold project in Panama was thought to be low grade but the latest drill results have changed that.
The most recent 10 drill holes from a 40,000-metre program to expand resources included a 9-metre near-surface intersection grading 17.24 grams gold per tonne.
Deep mineralization was also found that confirmed the companys structural model and showed potential for significant extension of mineralized breccias outside the current designed open pit limits. The deposit is a low-sulfidation, epithermal deposit.
Other highlights from the drilling includes a 10.5-metres intersection grading 3.12 grams gold per tonne and 9.9 metres grading 3.51 grams gold.
Petaquilla is constructing a 2,200-tonne-per-day carbon-in-leach plant for the gold mine and has projected it will be complete by the third quarter.
The company estimates it will produce 120,000 oz. gold per year ata ash cost of nearly US$200 per oz. If Petaquilla is able to expand resources enough, the company may increase the plant size to 5,000 tonnes per day.
As of April, measured and indicated resources are 620,000 oz. gold while inferred resources stand at 500,000 oz. gold. The companys goal is to expand resources to 1.5 million oz. gold.
Petaquilla will have drilled a total of 70,000 metres on the property by the end of the year, at which time it will update its resource calculation.
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