Despite uncertainty around Peru’s political future, the market applauded Sienna Gold (SGP-V) for its latest gold-intersect in the South American country.
Two additional holes were drilled at its Mina Igor property in northern Peru, the highlight being from a 147 metre hole which intersected 2.6 grams gold per tonne and 65.8 grams per tonne of silver over 94 metres.
In Toronto on May 29, the company’s shares were up 38% or 25 to 90 on roughly 694,000 shares.
The spike in share price comes as the most recent poll in Peru suggest that leftist-candidate Ollanta Humala is making marginal gains on his opponent Alan Garcia, who is considered to be the more centrist candidate.
Backing for Garcia slipped to 55% from 56% a week ago, while Humala rose to 45% from 43%, according to the poll.
Humala’s platform includes plans for the government to take partnerships in oil and mining contracts. Garcia backs higher taxes on oil and mining profits.
As for the significance of the drill results for Sienna, the company says the holes confirm mineralization to the north of the areas previously sampled. It is currently doing step-out drilling further to the north of those areas.
The drill program has cross cut the Tesoros breccia zone at five successive elevations allowing Sienna to subdivide the zone into alteration and mineralization zones, which, the company says, are typical of sediment-hosted, structurally controlled, high sulfidation, epithermal, and mineralized systems.
In its press release issued on May 29 the Sienna says near term exploration drilling will focus on discovering strike extensions to the north and down dip extensions to the south of the outcropping.
The Igor property is located in the Yanacocha-Pierina gold belt — a historic gold mining region dating back to the Spanish colonial era.
Be the first to comment on "Sienna’s intersect draws market attention"