News Release
Ollachea and Agua Verde results
Peruvian Gold Limited PVO
Shares issued 14,204,966 Aug 20 close $1.07
Thu 21 Aug 97 News Release
Mr David Henstridge reports
The company has received results of trenching at the Ollachea gold prospect, Southeastern Peru. The company has an option from Kookaburra to earn a 70% interest in three claims covering the prospect area. During the last work program, the company excavated 1,172 metres, and 187 channel samples, ranging from 2 to 5 metres in length, were cut from the trenches.
Results of the trench sampling are listed in the table below.
The Ollachea prospect is hosted by pyritic shales and slates interbedded with quartzites. Small granodiorite, diorite and dacite stocks intrude the sediments near the intersections of major fault structures. Gold mineralization is associated with pyrite and minor chalcopyrite in quartz and is concentrated along structures parallel to the sediments and proximal to the intrusives.
Trench Interval Gold Grade
(m) (g/t)
C 30 0.7
including 5 2.6
D 49.5 1.2
including 23.5 2.2
E 4.05 2.8
E south 24 0.7
F 11 2.0
F south 11.8 1.6
G 30.5 3.6
The trenches are spaced about 100 metres apart and the main mineralized zone, trending approximately E-W for over 300 metres, remains open to the west of trench G. Although the above results are derived from continuous intervals, the width of mineralization also remains open and untested in all trenches as deep overburden limited the exposure of bedrock. Previous sampling of an underground adit, lying between trenches F and G, averaged 6.2 g/t Au (uncut) over its entire 17.2 metre length. The company is encouraged by these results and intends to undertake an initial reverse circulation drill program as soon as possible. It is necessary to construct about 6km of access road before this drilling program can be undertaken.
AGUA VERDE
The company has received results from its first exploratory reverse circulation drill program at the Agua Verde copper prospect where 13 holes were completed totalling 980 metres. The program was designed to test two types of mineralization. Firstly, 11 holes were drilled to test the upper oxidized part of the intrusion, and these holes gave average results ranging from 0.1% copper to 0.16% copper. Although the upper part of the intrusion contains chalcocite mineralization, the grades are too low to be of economic interest. Secondly, two holes were designed to test the known copper-rich skarn on the periphery of the intrusion, parts of which have been mined historically. Both holes successfully intersected the skarn, with hole No. 4 intersecting 1.4% copper over 6 metres or 0.7% copper over 18 metres, from surface and hole No. 8 intersecting 1.67% copper over 26 metres, or 1.12% copper over 48 metres, from surface. It is concluded that the skarn horizon has the potential to contain between two and five million tonnes of high grade copper oxide mineralization in the upper, oxidized 50 metres of the horizon.
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