So - MDR comes out with (IMO) a positive news release today. An operating company like Rio Tinto doesn't spend money on these types of investigations "reverse economic study" unless they are confident they are onto something real. I understand Rio's "threshhold" for these types of deposits is 5+ million ounces, therefore, Rio does their homework over the next 3 months to determine the size and if > 5M ounces Rio stays in - if < 5M they vend their interest. MDR shareholders win modestly or win big. What seems to be missing in this overall picture is the company's (MDR's) ability to attract any interest on this emerging story. Time (as always) will tell.
PHASE II RESULTS FROM LINDERO, ARGENTINA
Vancouver, British Columbia -- Mansfield Minerals Inc. (TSX – MDR)
The Company has received assay results tabled by Rio Tinto Mining and Exploration Ltd. from the recently completed Phase II drilling and trenching program on the Company’s Lindero gold project. This program comprised 1,525.62 metres in four diamond drill holes bringing the total drilled on the property to 3,278 metres in ten diamond drill holes. In addition, several new trenches excavated in the area of the Main Zone exposed impressive intervals of significant grade gold mineralization.
Phase II Drilling Results
Hole Number From
(metres) To
(metres) Interval
(metres) Gold
(grams/tonne)
LID 007 162.00 552.00 390.00 0.540
Includes 178.00 228.00 50.00 0.607
Includes 262.00 276.00 14.00 0.591
LID 007 334.00 446.00 112.00 0.868
Includes 334.00 406.00 72.00 0.982
Includes 334.00 378.00 44.00 1.060
LID 008 3.17 56.00 52.83 0.420
Includes 20.00 26.00 6.00 0.710
LID 008 Entered a post mineral intrusive at 54m and drilled this material to 400m.
LID 009 Located 400m NW of the Main Zone – intersected only low gold values.
Hole bottomed at 82 metres.
LID 010 2.74 76.00 73.26 1.284
76.00 158.00 82.00 0.297
158.00 194.00 36.00 0.522
194.00 230.00 36.00 0.251
230.00 252.00 22.00 0.763
252.00 272.00 20.00 0.391
272.00 346.00 74.00 0.797
Includes 276.00 294.00 18.00 0.979
Includes 320.00 336.00 16.00 0.991
Phase II Trenching Results
Trench Number End Point
Co-ordinate
Direction From
(metres) To
(metres) Interval
(metres) Gold
(grams/tonne)
1 226,500 N
262,3400 E
NE
0
58
58
0.880
2 226, 300 N
262,3200 E
E 0
38 38
88 38
50 1.410
0.500
3 226,140 N
262, 3225 E
N38E 0
58 58
330 58
272 0.540
1.667
4 226,425 N
263,450 E
N35E
0
76
76
0.810
Upon examination of the exploration results to date, Rio Tinto has advised that it intends to undertake a reverse economic study on the Lindero property. This program is anticipated to entail further metallurgical testing, three-dimensional modeling and a logistical review with the objective of assigning a potential range of Net Present Values (NPV) and Internal Rates of Return (IRR) to the Lindero Gold Deposit plus an estimate of the capital cost to finance the project to production. Completion of the reverse economic study is estimated to take two to three months.
Management is very encouraged by Rio Tinto’s election to undertake such a study which is generally undertaken by companies only when prior exploration work has indicated the presence of a significant resource that is potentially economic to mine.
All gold analyses were performed by fire assay with atomic absorption finish at ALS-Chemex Laboratories in Vancouver. The assay data provided above was communicated to the Company by Rio Tinto.
On behalf of the Board of Directors,
“Gordon P. Leask”
Gordon P. Leask, P.Eng.
President |
