Plata-Peru proves up deposit

Encouraging drill results have induced Plata-Peru Resources (PPU-A) to expand exploration efforts at the Pachapaqui polymetallic mine in west-central Peru.

Assays have been received from two holes drilled below the 130 stoping level at the Sinchi Roca No. 6 zone. The first hole, drilled over a width of 40 ft. in the centre of the zone, returned 6.88% lead, 8.67% zinc and 3.38 oz. silver per ton; the second, drilled over 8 ft. in the southern portion of the zone, yielded 3.6% lead, 7.84% zinc and 2.22 oz. silver.

“These holes help prove the continuity of the ore zone 196 ft. below to the 70 level,” President George Babcock tells The Northern Miner. “Because of these positive results, we have commenced stope silling on this level.” Exploration drilling will continue during the next several weeks to expand the indicated reserve in eight mineralized areas. Previous exploration of one of these areas, the Riqueza block, encountered a well-mineralized structure 525 ft. below the 4660 level, with grades of 43 oz. silver, 0.51 oz. gold, 4.87% lead and 3.17% zinc over a width of 3 ft.

The Pachapaqui mill is operating at the daily rate of 300 tonnes, which is expected to rise to 500 tonnes this year.

Resources (in the probable category) stand at about 606,000 tonnes grading 9.96 oz. silver, 5.67% lead, 6.72% zinc and 1.15% copper. The company, which is also exploring for gold and base metals near Wawa, Ont., has 23.5 million shares outstanding (46.5 million fully diluted).

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