Results from the fifth phase of exploration at the El Valle-Boinas gold deposit in northern Spain continue to provide encouragement for Rio Narcea Gold Mines (TSE).
Drilling at the Boinas West zone, on the western flank of the deposit, has increased the known strike length of the zone to 250 from 90 metres. In addition, the downdip extension has grown to 120 from 50 metres, with a true thickness varying between 10 and 27 metres.
Among the recent assay results, BW 22 intersected 24 metres of jasperoid breccia and altered porphyry that averaged 6.5 grams gold per tonne.
At Boinas East, three holes were drilled along the southern extension of the deposit. The best intercept averaged 4.9 grams over 8.9 metres.
Other reconnaissance exploration is being conducted in the historic Roman workings, 30 km west of the El Valle-Boinas deposit.
Rio Narcea crews sampled a 20-metre-wide, goethite-rich quartzite breccia outcrop in an old pit wall. Seven of the eight samples contained gold ranging in value from 0.3 to 10.9 grams. The Freita open pit is one of many areas being explored in a 1,000-sq.-km land package recently acquired by the company.
In order to fund the reconnaissance exploration and development of the Valle-Boinas deposit, the company will issue a private placement of 4.8 million common shares at $2.20 each. The placement, which is subject to exchange approval, is with several European investors.
Proceeds of $10.7 million will be used to increase reserves and complete a bankable feasibility study at El Valle-Boinas, as well as fund what the company calls “the largest gold exploration in Western Europe.”
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