Positive trenching results at Libertad gold property

The Nicaraguan gold property La Libertad could be richer than previously thought.

Results from 19 trenches completed by Greenstone Resources (TSE) on the Cerro Mojan zone reveal a steeply dipping vein with a strike length of 1 km and an average width of 27 metres. The average grade of the mineralized vein is 2.5 grams gold per tonne.

Previous exploration outlined a resource of 275,000 oz. With the new trenching data, Greenstone says the zone could host more than 500,000 oz. The Cerro Mojon lies 5 km northwest of the existing 200-tonne-per-day open-pit mine and mill. A feasibility study will consider a large-scale expansion of the operation.

Greenstone is completing a 4,500-metre drill program, most of which is testing for mineralization to a depth of 100 metres below surface at Cerro Mojon.

The rest of the drilling will test some of the more than 20 targets within the 120-sq.-km exploitation concession and the adjoining 30-sq.-km exploration concession.