Sulliden finds new targets in Peru

Since an initial 10-hole drill program has failed to replicate promising surface results from the La Rubia and Boliche structures, Sulliden Exploration (SUE-M) is shifting its focus to a silicified ridge on the western side of the Santo Toribio property in west-central Peru.

The new 2,300-metre reverse-circulation drill program is designed to test a “silica cap” measuring about 500 metres long and 300 metres wide. The silicified ridge returned up to 11 grams gold and 1,700 grams silver per tonne from grab samples and is centred on a coincidental geophysical anomaly measuring 800 by 400 metres.

Sulliden says the mushroom-shaped resistivity anomaly appears to be connected to a deep-seated structure. The resistive layer has an average thickness of 100 metres and lies 50 metres under the silicified ridge. Assay results from the 12-hole program are expected by April.

Situated a mere 3 km from the Pierina gold mine, recently opened by Barrick Gold (ABX-T), the 9-sq.-km property hosts several gold prospects. A summer program of mapping and surface rock-sampling led to the discovery of three mineralized areas and provided evidence that the property is geologically similar to the Pierina area.

The first-phase, 987-metre drill program tested the lateral and vertical extensions of the La Rubia and Boliche structures. Situated on the eastern side of the property, the Boliche and Rubia prospects occupy an area where argillized tuffs are cut by a network of quartz-sulphide veins, some of which run parallel to the northwesterly striking Huaylas graben whereas others are at nearly right angles to it. All the drill holes hit the intended structure, but the gold-silver grades were significantly lower and narrower than those identified on surface.

Sulliden’s option deal on the property obliges it to perform US$2.5 million in exploration work by March 2002. It then can buy a half-interest for US$1.15 million from Peruvian-based Minera Santo Toribio.