At last!
Papa Grande 50% ownership agreement closed
Zappa Resources Ltd ZPA
Shares issued 17,053,790 Jul 29 close $0.32
Wed 30 Jul 97 News Release
Mr Albert Gerry reports
The company has closed on its 50% ownership agreement for the Papa Grande
concession in the Ponce Enriques gold camp in southern Ecuador. With
advanced funds from Cambior of Montreal, the final payment of US$600,000
was completed on July 28 1997. Zappa now owns 50% interest with no
additional title or work commitments. The agreement does however allow the
company to earn up to 85% working interest in the joint venture with
Conaoro SA if the Ecuadorian partner elects not to participate in
development costs.
Zappa delivered to Conaoro SA, the owner of the other 50% interest in Papa
Grande, the required conceptual prefeasibility study. The study prepared by
Cambior combined the exploration programs of the two contiguous properties,
Papa Grande and Mollopongo.
The combined properties show an indicated and inferred resource tonnage as
follows
Soft Rock (saprolite): 4,288,340 tons at 1.22 g/t or 168,481 oz.
Hard Rock: 41,791,090 tons at 1.08 g/t or 1,453,790 oz.
Combined: 46,079,430 tons at 1.10 g/t or 1,622,271 oz.
The resources to date are based on three drill programs, the first 11 core
drill holes by Zappa and Cambior. Zappa's two programs of 21 and 22 drill
holes. To date the geological framework of the deposit or the elements that
controls the limits and the continuities of the mineralization are not well
understood. The properties have however, only been scratched by the sparse
drilling and have excellent exploration potential. Identified mineralized
bodies within both areas are still open and further exploration may well
increase the resource.
Geology
The gold mineralization occurs with brecciated rocks in Papa Grande but
there is no particular association of gold with a specific lithology and
some brecciated rocks are barren. Gold is the only economic metal
concentration. It occurs as native free gold particles commonly associated
with sulfides. Most intercepts are shallow, less than 90 metres in depth,
suggesting a supergene enrichment or redistribution of gold. However the
mineralized breccias are hard rocks within primary sulphide, and supergene
effects are not apparent on the sulphides. At Mollopongo gold
mineralization occurs largely within quartz tourmaline pyrite veins that
are NNW and NNE-trending and dipping east. Gold dissemination occurs within
tuff levels and basaltic pillow lava related to strong propylitic
alterations.
With the limited exploration done to date the analysis shows the resources
as not economical given the indicated tonnage and grade, but management
believes the resource is a great foundation to build upon. The properties
are still considered in the exploration stage with excellent potential.
Definitions of indicated and inferred tonnage, control procedures for
assaying, preliminary metallurgical test work, economical analysis, drill
plan and assays can be reviewed by interested parties at Zappa's Vancouver
office.
La Plata
Cambior is proceeding with its second stage drill program on Zappa's La
Plata massive sulphide concession of central Ecuador. Three holes have been
drilled to date and the fourth is nearly completed. A total of 2,500 metres
will be drilled during this phase. Zappa has also staked an additional
6,500 hectares and applied to the Ecuadorian government for four other
concessions just south of La Plata. These concessions have features similar
to La Plata. Preliminary field work is under way including mapping and grab
sampling. The assay results from the grab sampling will be known shortly.
PHASE THREE DRILL RESULTS
Hole From-To Intercept Au
(m) (m) g/t
180-97-21 14.0 - 57.0 43 1.05
180-97-22 3.66 - 99.67 96 0.87
180-97-23 No significant intercepts
180-97-24 16.0 - 80.0 64 0.92
180-97-25 25.0 - 57.0 32 0.79
180-97-27 No significant intercepts
Mollopongo
181-97-26 No significant intercepts
181-97-28 No significant intercepts
181-97-29 3.00 - 80.0 76 1.00
181-97-31 61.0 - 89.0 28 0.78
Papa Grande
180-97-30 51.0 - 55.0 4.0 2.24
180-97-32 76.0 - 82.0 6.0 1.21
180-97-33 35.0 - 71.0 36 0.75
180-97-34,
34A, 35,
36, 37 38 No significant intercepts
180-97-39 8.00 - 14.0 6.0 3.48
180-97-40 64.0 - 84.0 20 0.74
180-97-41 96.0 - 126 30 1.25
180-97-42 No significant intercepts
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