BAT... Cormark comments....
Batero Gold (BAT-TSXv; Buy (S) - C$8.00 target)
Talking points for sales/trading - not intended as a research report
Event: Results from 16 new drill holes (12 into new targets, 4 into La Cumbre)
Impact: Positive
Commentary
* La Cumbre is getting larger. Three holes have expanded the porphyry mineralization and we have increased confidence in our 6.0 MMoz resource projection by year-end.
* Three new discoveries have been made (Manzanillo, La Lenguita and Matecana), including a higher grade epithermal system at Manzanillo that adds a higher grade "starter-pit" component to the development story.
* As the map below shows, all these targets at Quinchia are starting to meld together, bringing the potential of one big zone into play.
- Batero completed its Phase 1&2 - 40,000 m drill program on July 23 and has announced it started a Phase 3 program on July 24 that will consist of 12,500 m using 5 rigs. The Phase 3 exploration drill plan is to test and fill-in the remaining untested areas from Matecana in the south to La Cumbre, Manzanillo, La Lenguita, and Dos Quebradas in the north. The Phase 3 drill results will be incorporated into the initial resource estimate scheduled for year-end 2011.
LA CUMBRE
- Four drill holes were drilled to test the outer boundaries of La Cumbre porphyry and three holes successfully intercepted long intervals of gold and copper mineralization. These holes should contribute significantly to the expansion of the La Cumbre porphyry boundaries to the north approximately 100 m, to the north-northeast approximately 250 m, and to the east approximately 300 m.
- Intercepts included 304 m grading 0.47 g/t gold and 0.08% copper, 104 m grading 0.39 g/t gold and 0.08% copper and 43 m grading 0.23 g/t gold and 0.02% copper.
MANZANILLO
- Three holes were drilled from the same platform at the Manzanillo target area located approximately 350 m NNE of the La Cumbre porphyry. Of significance, DDH-034 intersected 23.3 m grading 3.73 g/t gold and 0.02% copper (starting 9.7 m from surface). This is the highest grade interval at the project thus far from a zone of newly identified epithermal mineralization and will be delineated in the Phase 3 drill program.
- Additionally, porphyry mineralization was also intersected at Manzanillo (37 m grading 0.81 g/t and 115 m grading 0.47 g/t) lending evidence that the gold and copper mineralization may be expanded south to the La Cumbre porphyry and NNE to the La Lenguita new porphyry discovery. This is significant as it demonstrates further potential that La Cumbre porphyry may extend its boundaries significantly.
LA LENGUITA
- Three holes were drilled from the same platform at La Lenguita located approximately 850 m south of the Dos Quebradas porphyry and approximately 500 m east of Manzanillo's new discovery. All holes intercepted gold and copper mineralization with significant intervals intercepted from near surface, such as 43 m grading 0.70 g/t gold and 0.08% copper starting 14.0 m from surface and 101 m grading 0.30 g/t gold and 0.07% copper starting 8.4 m from surface.
MATECANA
- The Matecana porphyry discovery occurs approximately 800 m southeast of the La Cumbre porphyry. Three drill holes were completed and two drill holes intersected significant new discovery porphyry-related mineralization, including 77 m grading 0.35 g/t gold and 0.03% copper and 27 m grading 0.50 g/t gold and 0.05% copper.
- The discovery at Matecana, located approximately 800 m from La Cumbre porphyry, indicates the district has strong potential to be expanded with further drilling. The potential successful expansion of new mineralization from Matecana to La Cumbre would further extend the North to South strike length of the project's gold-copper mineralization to approximately 3 km. |
