Ecuadorian Minerals Corporation -
Ecuadorian's Beroen drill results
Ecuadorian Minerals Corporation
EMC
Shares issued 58,499,265
1999-08-31 close $0.79
Wednesday Sep 1 1999
Mr. Stephen Kay reports
Ecuadorian Minerals Corporation has received all assay results for the recently
completed diamond drilling program on the 100-per-cent-held Beroen epithermal
gold-silver deposit in Ecuador. Twenty-one angled drill holes, totalling 2,029
metres, tested three primary target areas and identified two significant areas of
gold and silver mineralization (the Alejandra and Dorada zones) with potential to
host a preliminary geological mineral inventory, based on in-house estimates, in the
order of 1.8 million gold equivalent ounces at an estimated grade of 6.1 grams per
tonne gold equivalent contained within approximately 9.4 million tonnes. In both
zones, the mineralization remains open in several directions. From information
generated by the drilling, these two zones exhibit many similarities, in terms of style
of alteration, mineralization, gold-silver values and structural setting (based on
published data) with Meridian Gold's El Penon gold-silver deposit currently under
development in Northern Chile.
Alejandra zone
Following an extensive geological mapping and surface rock sampling program
completed earlier this year by EMC (as reported in Stockwatch May 26, 1999),
a 10-drill-hole program (totalling 844.5 metres) tested a northeast-southwest
trending, faulted, mineralized zone approximately 200 metres in length by 150
metres in width, open at both ends. About 75 per cent of the zone is obscured by
surface cover. Sixty-six of 82 surface rock panel samples collected during EMC's
program comprised silicified, clay-altered, brecciated and stockworked volcanic
rocks and gave average, uncut grades of 3.4 g/t gold and 39 g/t silver. Sixteen of
the 82 rock samples were collected from steeply dipping quartz veins up to three
metres in width within the altered volcanics and these samples yielded average,
uncut grades of 39.1 g/t gold and 209 g/t silver. Cutting gold grades to 50 g/t and
silver grades to 300 g/t provides average values for the 16 samples of 27.8 g/t
gold and 166 g/t silver.
Results (uncut values) for EMC's 10 drill holes (drilled at angles of 45 degrees to
60 degrees) within the Alejandra zone are listed below. Also included are three
diamond drill holes completed by Rio Tinto in 1996, in the southwestern part of
the Alejandra zone.
Drill Hole Interval Intercept Gold
(Depth) (metres) (metres) (g/t)
EMC drilling 1999
BC 2 (84.7 metres)(x)
8.1 - 43.3 35.2 8.1
Includes 9.8 - 29.6 19.8 12.0
BC 3 (90.5 metres) Not Sampled
BC 4 (93.6 metres)(x)
52.0 - 84.0 32.0 2.0
Includes 52.0 - 64.2 12.2 4.3
Includes 58.2 - 62.7 4.5 8.8
BC 5 (136.3 metres)(x)
8.0 - 61.0 53.0 8.3
Includes 8.0 - 24.0 16.0 24.9
Includes 8.0 - 14.0 6.0 46.7
31.7 - 32.9 1.2 11.7
BC 6 (87.5 metres)
8.8 - 11.0 2.2 2.7
43.0 - 45.1 2.1 3.2
BC 7 (53.4 metres)(x)
16.4 - 17.5 1.1 5.0
BC 8 (40.2 No Significant Values
BC 9 (37.2 No Significant Values
metres)
BC 10 (70.1 Not Sampled
metres)
BC 16 (151.0 metres)
70.8 - 88.8 18.0 2.6
Includes70.8 - 75.8 5.0 5.2
Rio Tinto drilling 1996
LLP 8 (261 metres, vertical)(x)
1.0 - 56.0 55.0 2.5
Includes 5.7 - 28.5 22.8 5.1
219.7 - 230.0 10.3 3.7
LLP 9 (240 metres, vertical)(x)
1.5 - 36.0 34.5 12.3
Includes 3.0 - 15.0 12.0 30.7
LLP 10 (55.5 metres - 70 degrees)(x)
4.5 - 31.5 27.0 10.4
Gold
Equiva-
Drill Hole Silver lent Comments
(Depth) (g/t) (g/t)
EMC drilling 1999
BC 2 (84.7 metres)(x)
80 9.7 Alejandra
breccia
Includes 103 14.1 Alejandra
breccia
BC 3 (90.5 metres) Entire
drill hole
in gravels
above bedrock
BC 4 (93.6 metres)(x)
16 2.3 Alejandra
breccia
Includes 19 4.7 Alejandra
breccia
Includes 58 10.0 Alejandra
breccia
BC 5 (136.3 metres)(x)
57 9.4 Alejandra
breccia
Includes 189 28.7 Alejandra
breccia
Includes 358 53.9 Alejandra
breccia
136 14.4 Elizabeth
vein
BC 6 (87.5 metres)
9 2.9 Alejandra
35 3.9 vein not
intersected due
to faulting
BC 7 (53.4 metres)(x)
43 5.9 Elizabeth
vein
BC 8 (40.2 Elizabeth
metres) vein not
intersected due
to faulting
BC 9 (37.2 Amanda vein
metres) not intersected
due to
faulting
BC 10 (70.1 Not Sampled
metres)
BC 16 (151.0 metres)
30 3.2 Alejandra
breccia
74 6.7
Rio Tinto drilling 1996
LLP 8 (261 metres, vertical)(x)
24 3.0 Breccia
plus quartz
veins
Includes 54 6.2 Site
60 metres
southwest
of LLLP 09/10
9 3.9
LLP9 (240 metres, vertical)(x)
109 14.5 Breccia
Includes 257 35.8
LLP10 (55.5 metres - 70 degrees)(x)
98 12.5 Breccia
(x)Drill results as reported in Stockwatch July 29, 1999, news release.
Note: Gold equivalent value is calculated on the basis of 50 g/t silver equals one
g/t gold. All gold and silver values are uncut.
Taking into account the Rio Tinto drill holes listed above and the limited amount of
additional drilling carried out to date by EMC, the results show a well-developed
northeast-southwest striking, southerly dipping zone of hydrothermal breccia (the
Alejandra Breccia) over an estimated true width of about 30 metres with an
arithmetical average for results from drill holes BC 2,4,5,16 and LLP 8,9 and 10
of 7.5 g/t gold and 67 g/t silver (approximately 8.8 g/t gold equivalent). This
mineralized breccia zone (partially faulted as evidenced by BC 3 not intersecting
bedrock) has a projected strike length of about 300 metres and, based on
in-house estimates, has the potential to contain a geological mineral inventory of
approximately 1.3 million gold equivalent ounces to a down-dip length of 200
metres at a grade of 8.8 g/t gold equivalent contained within about 4.7 million
tonnes. The zone remains open to the northeast, to the southwest and to depth.
Within the hydrothermal breccia zone, which crops out on surface and which has
been drill tested to a vertical depth of 130 metres below surface in drill hole BC 5,
several high-grade grade intercepts are reported. These intervals include those in
BC 5 with uncut values of 53 metres at 8.3 g/t gold, 57 g/t silver, including 16
metres at 24.9 g/t gold, 189 g/t silver and six metres at 46.7 g/t gold, 358 g/t
silver.
Cutting the Alejandra breccia are irregular, strongly faulted, high-grade quartz
veins in the order of two metres to three metres wide (the Elizabeth, Amanda and
Alejandra veins). EMC's geological mineral inventory estimate excludes any
contribution from these known high-grade veins outside of the breccia zone.
Based on the above results and EMC's interpretation, additional drilling is
considered to be warranted to further evaluate the extent and grade of the
Alejandra mineralized zone.
Dorada zone
The Dorada zone is approximately 750 metres south-southwest of the Alejandra
zone. A previous surface rock sampling program carried out by Rio Tinto over a
200-metre by 200-metre area within the Dorada zone, gave average, uncut
grades, calculated by EMC, of 7.8 g/t gold and 29 g/t silver for 152 samples (with
high values of 188.6 g/t gold and 288 g/t silver). Chargeability and resistivity
geophysical anomalies are coincident with the mineralized zone.
A total of 13 surface rock panel samples of brecciated, silicified and clay altered
intrusive with minor volcanics was collected in and along strike from the area
drilled by EMC. Eight of the 13 samples reported uncut values in excess of four
g/t gold and 10 g/t silver with a high of 738 g/t gold (21.5 ounces per ton) and
664 g/t silver (19.4 ounces per ton). Visible gold was identified in a number of
surface outcrops by EMC geologists.
In the recently completed program, EMC drilled five angled holes in the Dorada
zone (a total of 323.5 metres) to test a portion of the northeast trending,
mineralized zone over a distance of about 100 metres in length and 75 metres in
width. Uncut drill hole results are shown below and include three Rio Tinto
diamond drill holes whose drill sites were used by EMC for its drill program at
Dorada.
Drill Hole Interval Intercept Gold
(Depth) (metres) (metres) (g/t)
EMC drilling 1999
BC 17 (80.2 metres)
1.0 - 42.4 41.4 2.1
Includes 1.0 - 3.8 2.8 8.5
Includes 34.3 - 40.4 6.1 5.0
BC 18 (69.2 metres)
0 - 32.7 32.7 3.5
Includes 21.0 - 32.7 11.7 6.0
BC 19 (108.8 metres)
2.0 - 43.5 41.5 1.9
Includes 2.0 - 10.0 8.0 5.3
Includes 36.0 - 43.5 7.5 4.0
BC 20 (23.5 metres)
1.5 - 4.0 2.5 13.3
BC 21 (41.8 metres)
4.0 - 39.5 35.5 2.6
Includes 4.0 - 12.3 8.3 6.1
Rio Tinto drilling 1996 (all vertical)
LLP 14 (133.5 metres)
28.0 - 44.0 16 1.3
Includes 34.0 - 38.0 4 3.4
LLP 15 (34.5 metres)
0 - 22.5 22.5 1.8
Includes 13.5 - 18.0 4.5 5.7
LLP 16 (58.5 metres)
0 - 42.5 42.5 1.6
Includes 23.6 - 37.5 13.9 3.1
Gold
Equiva-
Drill Hole Silver ent Comments
(Depth) (g/t) (g/t)
EMC drilling 1999
BC 17 (80.2 metres)
17 2.4 Altered
Intrusive
(Diorite)
with
breccia/
stockworks/
veins
Includes 57 9.6
Includes 36 5.7
BC 18 (69.2 metres)
18 3.9 Altered
Intrusive
(Diorite)
with
breccia/
stockworks/
veins
Includes 19 6.4
BC 19 (108.8 metres)
12 2.1 Altered
Intrusive
(Diorite)
with
breccia/
stockworks/
veins
Includes 17 5.6
Includes 27 4.5
BC 20 (23.5 metres)
51 14.3 Altered
Intrusive
(Diorite)
with
breccia/
stockworks/
veins
BC 21 (41.8 metres)
20 3.0 Altered
Intrusive
(Diorite)
with
breccia/
stockworks/
veins
Includes 37 6.8
Rio Tinto drilling 1996 (all vertical)
LLP 14 (133.5 metres)
10 1.5 Site of BC
19 and 20
Includes 13 3.7
LLP 15 (34.5 metres)
14 2.1 Site of BC
21
Includes 15 6.0
LLP 16 (58.5 metres)
12 1.8 Site of BC
17 and 18
Includes 15 3.4
Note: Gold equivalent value is calculated on the basis of 50 g/t silver equals one
g/t gold. All gold and silver values are uncut.
All of the angled EMC drill holes reported significantly longer mineralized
intercepts of higher grade material than the corresponding holes completed by Rio
Tinto because of the fact that EMC drilled angled holes across the mineralized
zone (which contains steeply dipping structures), compared with the vertical Rio
Tinto drill holes.
Both the EMC and Rio Tinto drill holes penetrated variably altered, chloritized,
silicified and brecciated intrusive (diorite) with stockworks, hydrothermal breccias
and veins containing some pyrite and visible gold. Drill results show that all of the
holes were collared in mineralization (in the case of BC 21, virtually the entire drill
hole was mineralized), so that the actual width of the mineralization is unknown,
although a minimum width of about 30 metres can be estimated. Surface rock
sampling by Rio Tinto showed significant gold and silver values over the entire
area of available outcrop along the zone covering a strike length of approximately
200 metres. The mineralized zone appears to be open along strike and to the
northwest across its width.
An in-house geological mineral inventory estimate using a minimum width of 30
metres, a potential strike length of 300 metres and a down-dip length of 200
metres, at the average grade of the significant drill hole intercepts (3.4 g/t gold
equivalent) provides approximately 0.5 million gold equivalent ounces contained
within 4.7 million tonnes. Additional drilling is therefore considered to be
warranted to define the full width of mineralization and to test strike and depth
extensions of the zone.
San Luis zone
The San Luis zone comprises large areas of altered and mineralized volcanics
covering approximately 850 metres by 750 metres adjacent to the north of the
Alejandra zone. EMC's target is a bulk-minable, disseminated precious metal
deposit (Round Mountain Nevada style) together with bonanza-grade vein
mineralization. Highly anomalous gold, antimony, mercury and arsenic surface
geochemical values within the volcanics indicate "leakage" of possible significant
precious metal mineralization at depth. Geophysical data generated by Rio Tinto
appear to confirm this hypothesis.
EMC drilled six widely spaced drill holes (BC 1 and 11 to 15) totalling 861
metres with a maximum depth of 240 metres within the 850-metre by 750-metre
area and focused on areas of intense silicification and/or brecciation together with
significant geochemical anomalies. Scattered, narrow (two metres or less)
mineralized intervals containing five g/t gold to seven g/t gold and up to 54 g/t
silver, were obtained from the drill program. Further work will be carried out to
assess the relationship between the San Luis zone and high-grade mineralization
intersected in the Alejandra zone, to the immediate south.
Summary
The results of the initial Beroen drill program are encouraging in that a limited
(2,029 metres in 21 holes) diamond drill program tested three different areas
within the 1.8-kilometre-long mineralized zone and proved the subsurface
existence of significant gold and silver mineralization. Both bulk minable, open
pittable and underground mining potential have been demonstrated within two
large zones which require further definition drilling, subject to available financing,
to test their ultimate size potential. A preliminary in-house geological mineral
inventory estimate for the Alejandra and Dorada zones indicates a potential in the
order of 1.8 million gold equivalent ounces at a grade estimate of 6.1 g/t gold
equivalent contained within approximately 9.4 million tonnes. The limited drilling
program carried out to date does not, however, provide sufficient data for a
formal resource calculation. EMC's estimate excludes any contribution from
known high-grade veins outside of the mineralized breccia in the Alejandra zone.
The overall mineralization in the Alejandra and Dorada zones at Beroen shows
many features in common with the El Penon property being developed by
Meridian Gold Inc. in Northern Chile. Mineralization at both properties is related
to Tertiary age, low sulphidation, adularia-sericite alteration type, epithermal
precious metal systems. The styles of mineralization at each property comprise
quartz veins, massive quartz flooded veins and hydrothermal breccias containing
bonanza grade gold/silver values. In addition, at both properties the principal
control to mineralization is supplied by district scale faulting.
Drilling was carried out by the South American subsidiary of Canadian-based
Connors Drilling Ltd. Sample preparation and assaying were undertaken by
Bondar Clegg of Vancouver using conventional fire-assay methods. Duplicate
analyses of selected Bondar Clegg samples were completed by Monitor
Geochemical Inc. and show good reproducibility, particularly for the high-grade
samples (greater than five g/t gold and 15 g/t silver). Standards (with known gold
values) and blanks, for quality control purposes, were also included in each batch
of assayed samples which were sent to both laboratories.
Vetaspata property, Peru
Surface and underground geological mapping, sampling and surveying continue on
the property in order to establish drill sites for the upcoming drilling program
scheduled to start in late September. This program will comprise 15 to 20
diamond drill holes totalling 1,500 metres and will evaluate the continuity of the
high-grade gold-bearing mantos (as reported in Stockwatch Dec. 8, 1998), away
from the previously sampled underground workings and will also test for additional
manto horizons at depth and along strike.
The initial primary area of interest, as outlined so far, covers 700 metres by 500
metres in area as part of a 60-square-kilometre property position. Surface cover
in the area is extensive and the full extent of the mineralized zone is not known at
this time, although additional gold-bearing mantos have been identified on the
property.
Paccha property, Ecuador
Certain of the agreement terms related to share issuances under the Paccha option
agreement between EMC and Southern Metals Corporation have been amended
due to Vancouver Stock Exchange requirements relating to Southern Metals'
option on the property. The agreement, as amended, has been approved by the
Toronto Stock Exchange.
Under the amending agreement, dated Aug. 12, 1999, to the original agreement
(as reported in Stockwatch July 6, 1999), the consideration for Southern Metals
to earn a 50-per-cent interest in the property is now the expenditure of $1-million
(U.S.) over three years (with a guaranteed minimum of $150,000 (U.S.) in the
first year) and the issuance of one million shares of Southern Metals to EMC in
four tranches of 250,000 shares, each tranche subject to filing independent reports
acceptable to the VSE. An additional one million shares are issuable to EMC
upon filing a bankable feasibility study with the VSE. No other material changes
were made to the agreement.
Ayapata property, Peru
Based upon prevailing market conditions and the higher priority of other EMC
projects, both technically and financially, EMC has elected to terminate the
agreement for the low-grade Ayapata gold property in southeastern Peru. The
joint venture company holding the property, Compania Minera Ayapata SA, will
be dissolved and EMC's 95-per-cent shareholding (through its wholly owned
subsidiary Minera Oro Vega SA) will revert to the original owner.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
old url (better for printing) |
