Peruvian Gold Limited
PVO
Shares issued 14,227,466
1998-09-25 close $0.45
Monday Sep 28 1998
Mr. David Henstridge reports
Peruvian has received results from the third phase of drilling at its Lara porphyry
copper prospect in coastal, Southern Peru. The 100 per cent owned Lara mineral
claims are underlain by a highly altered intrusive body exhibiting a leached capping
of a porphyry copper deposit; the leached cap area measures at least 1km
north-south by 1.5km east-west. An induced polarization survey conducted in
1997 yielded encouraging results and revealed that the potential target area
covered an area of about six square kilometres.
Since May 1997, the company has drilled 24 holes at Lara totalling 2,789 metres
and completed its third drill program during August, 1998. The program consisted
of 12 holes totalling 1,183 metres of which 1,039 metres were drilled by reverse
circulation and 134 metres by diamond core methods. The purpose of the
program was to further delineate the zone of supergene copper enrichment
(chalcocite blanket) intersected in the two drill programs undertaken in 1997.
Four holes were core drilled with three of them designed to twin existing RC holes
(LRC-9, 10, and 11). The hole twinned on LRC-10 had to be abandoned before
reaching the target due to bad ground conditions and loss of water circulation.
Holes LDD-13 and LDD-14 (twins of LRC-9A and LRC-11), assayed 24
metres at 1.12 per cent Cu and 22 metres of 0.69 per cent Cu, respectively. The
purpose of twinning the mineralized intervals with core is to see if the core samples
will enhance the grade because fine sulphides, like chalcocite, are sometimes lost
using the reverse circulation or percussion drilling methods. Other than hole
LDD-17 (twin of LRC-10), which was abandoned due to bad ground conditions,
all holes were successfully drilled to target depth. The supergene zone of the
porphyry, which ranges in thickness from 20 to 40 metres, followed by the
primary sulphide zone, was intersected below the leached cap which is up to 70
metres thick. The assay results from this program are included in the attached
table. A total of 165 check analyses has been performed by IPL in Vancouver,
B.C. The results compare favourably with the analyses done in Peru, showing on
average a slight increase in copper values.
The company is encouraged with these significant copper results. The current area
of influence of drill holes LRC-4 to LDD-24 is about 600 metres east-west by
550 metres north-south and the enriched copper blanket intersected in the drill
holes remains open to the west and east. Of particular interest is the Mina de
Socos area 1.5km east of the main Lara zone. Another, slightly smaller, porphyry
centre was identified here in 1997. An induced polarization survey gave a strong
conductive anomaly centred roughly over the Mina de Socos area, and the
anomaly may be contiguous with the main Lara zone.
Of considerable importance is the contiguous area surrounding drill holes
LDD-13, LDD-14, LRC-21 and LRC-22 where the average copper grades
exceed 1 per cent and the main copper mineral is chalcocite. Chalcocite can be
heap leached using sulphuric acid in a similar fashion to copper oxide ore. As well,
the two twinned diamond holes significantly increased the copper grades obtained
from the RC holes by 5 per cent (LDD-13) and 75 per cent (LDD-14) suggesting
that the RC holes are underestimating the copper grades.
The company intends to undertake two column leach tests on samples prepared
from the two twin drill holes to ascertain the leachability of the chalcocite
mineralization. An engineering scoping study will also be undertaken to estimate an
in situ resource and help define the next phase of work to be undertaken at Lara.
It should also be noted that Lara is in an ideal position, being 40 kilometres east of
the Pan American highway in Southwestern Peru. For comparison, the Andacollo
heap leach 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 per cent recoverable
copper.
Hole Type From To Total Cu
m m m % *
LRC-2 RC 42 66 24 0.47
LRC-3 RC 40 78 38 0.32
LRC-4 RC 30 70 40 0.56
incl 50 70 20 0.78
LRC-5 RC 18 38 20 0.56
LRC-8 RC 42 72 30 0.31
incl 42 50 8 0.48
68 72 4 0.67
LRC-9A RC 74 98 24 1.12
LRC-10 RC 62 86 24 0.51
incl 64 82 18 0.56
LRC-11 RC 70 92 22 0.69
incl 80 92 12 1.02
LRC-12 RC 64 90 26 0.73
LDD-13
(LRC-9A
redrill) DD 75 99 24 1.18
incl 80 98 18 1.33
LDD-14
(LRC-11
redrill) DD 72 96 24 1.21
LRC-15 RC 58 80 22 0.91
incl 58 74 16 1.12
LRC-16 RC 36 46 10 0.45
LRC-19 RC 30 52 22 0.48
LRC-20 RC 22 38 16 0.35
LRC-21 RC 78 114 36 0.74
incl 78 94 16 1.14
LRC-22 RC 84 110 26 0.92
incl 86 102 16 1.09
LRC-23 RC 26 90 64 0.38
LDD-24 DD 73 86 13 0.42
incl 78 86 8 0.52
RC = Reverse Circulation
DD = HQ Diamond Drill
* Plenge Labs (Lima) |
