Solid grades at Sa Perrima

Vancouver — Drill core from the Sa Perrima deposit at the Furtei property on the island of Sardinia has yielded encouraging grades, and results suggest the high-grade mineralization is open to the north.

Until recently, the 12-sq.-km property had been 90%-owned by Medoro Resources (MRL-V), but 10%-owner Sargold Resources (SRG-V) bought out Medoro’s stake in return for $6 million in cash and $1 million in shares. Sargold also assumed $2 million worth of Medoro’s liabilities.

The property, a past producer, is underlain by Tertiary volcanics and volcano-sedimentary assemblages, which contained eight oxide zones and associated upper-level sulphide zones. The sulphide zones were mined by open-pit methods. The Sa Perrima deposit measures roughly 500 by 350 metres and lies within 150 metres of the sulphide flotation plant.

Six core holes were drilled to provide samples for metallurgical testing. The highlight was a 14-metre intercept grading 11.75 grams gold per tonne from within an interval 39 metres wide grading 6.3 grams gold at a down-hole depth of 49 metres.

The Furtei mine produced 138,000 oz. gold before being shut down in 2002 because of low gold prices, even though the plant had been changed to accommodate sulphide ore. “The oxide resource ran out, so the mine was shut down,” says Karl Kottmeier, vice-president of corporate communications for Sargold.

In December 2002, the mine was estimated to have a resource of 9.2 million tonnes averaging 2.04 grams gold, or almost 600,000 oz. gold, as well as 13,000 tonnes copper. Drilling will endeavour to bring this resource up to NI 43-101 standards.

Sargold plans to re-activate the plant in the near term, based on the resources outlined at the Sa Perrima deposit. The gold price necessary to sustain mining is estimated at US$350 per oz. Copper production is not deemed a priority.