News Release,
Lara drilling results
Peruvian Gold Limited PVO
Shares issued 14,227,466 Nov 21 close $0.88
Mon 24 Nov 97 News Release
Mr David Henstridge reports
The company has received further results from the second phase of drilling
completed at the Lara porphyry copper prospect, owned 100% by the company
with no underlying royalties. Seven reverse circulation drill holes,
ranging from 21 to 100 metres in depth and totaling 611 metres, were
designed to test the northerly continuation of secondary copper
mineralization discovered in drill holes LRC 4 and LRC 5 completed in May
1997. The Lara porphyry copper prospect, as outlined by mapping and
geophysics, covers about 6 sq km, which is more than sufficient to host a
significant copper resource.
With the exception of drill holes LRC 6 and LRC 7, the latter abandoned at
shallow depth, the drill holes successfully intersected the zone of
secondary copper enrichment on top of the sulphide-bearing Lara intrusive
complex. This secondary zone contains dominantly chalcocite with lesser
copper oxides and chalcopyrite. The most significant results from this
drill program are listed in the following table:
Hole TD From-To Inter- Cu
(m) (m) val %
(m)
LRC 6 100 <0.10
LRC 7 21 NA
LRC 8 100 42 - 72 30 0.31
inc 42 - 50 8 0.48
68 - 72 4 0.66
LRC 9 98 48 - 98 50 0.60
inc 74 - 98 24 1.12
LRC 10 100 62 - 86 24 0.51
LRC 11 92 32 - 92 60 0.36
inc 70 - 92 22 0.69
80 - 92 12 1.02
LRC 12 100 36 -100 64 0.51
inc 64 - 90 26 0.73
The analyses reported above were performed by a laboratory in Lima, Peru. A
total of 91 check analyses was undertaken in Vancouver, and of the 60 that
assayed above 0.2% copper, the results from the Vancouver laboratory
averaged 8.5% higher. Further check analyses are being undertaken and will
include solubility tests on the copper mineralization.
The company believes that these results are extremely significant. The
current area of influence of drill holes LRC 4 to LRC 12 is about 700m by
500m and the secondary copper enriched blanket intersected in the drill
holes remains open in all directions. Also, two of the most significant
holes, LRC 9 and LRC 11, ended in mineralization. The company will proceed
to further test the Lara project on a priority basis and in addition to
further reverse circulation drilling, a diamond drilling program is planned
to twin some of the holes to verify the grade and test the mineralization
at depth. Results from reverse circulation drilling are often
underestimated when chalcocite is present, especially when ground water is
encountered during drilling.
It should also be noted that Lara is in an ideal position, being 45km east
of the main coastal highway in southwestern Peru. For comparison, the
Andacollo copper project in Chile commenced production in late 1996 based
on an in-situ resource of 33 million tonnes at a grade of 0.7% recoverable
copper.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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They halted trading today for this news. Market reaction was "Yawn".
JW |
