not much i can add to this excellent interpretation

Trying to make sense of the latest drill results Some very nice step-outs as well as continuation in different quadrants of the deposit.

Northeast Holes

Hole 79 was intended to follow up on drilling to the north of AP 10-16, a previously released hole which encountered 23 metres @ 4.06 g/t au / 6.13 g/t ag. Hole 79 was drilled about 100 metres to the north of AP-10-16 and hit 20 metres @ 0.79 g/t au / 4.1 g/t ag as well as 17 m @ 0.77 g/t au / 4.4 g/t ag and 11 metres @ 0.93 g/t au / 3.6 g/t ag.

For the most part this hole was lower grade than AP-10-16 but this was to be expected somewhat as it infilled into the lower grade mineralization halo and the average on the bulk tonnage is in the 1.00 g/t au equivalent.. AP-10-16 was likely an area of higher grade mineralization within the bulk tonnage but it’s still early to tell with just one drill hole punched north of hole 16.

Hole 82 was very exciting as it was a step-out west of any previous drilling at Ana Paula.. the closest holes in proximity to 82 prior were AP-10-13 and AP-10-12 which each hit 17 m @ 0.92 g/t au / 2.5 g/t ag, 24 m @ 2.03 g/t au / 2.6 g/t ag, 25 @ 0.62 g/t au / 2.4 g/t ag, 40 m @ 0.8 g/t au, 14.4 g/t ag.

Hole 82 drilled in this release 9.5 metres @ 1.11 g/t au / 6.1 g/t ag, 28 m @ 0.94 g/t au / 16.33 g/t ag, 7 m @ 0.78 g/t au / 27.7 g/t ag, 7 m @ 0.81 g/t au / 34.3 g/t ag and 12.7 m @ 1.05 g/t au / 12.4 g/t ag.

Overall hole 82 had very similar grades to those released previously in AP 12 & 13 in terms of gold but it encountered the highest grade silver mineralization to date among the intervals with hits of over half an ounce per tonne and almost 2/3 ounce per tonne in another hole.

Breccia Hole

The breccia hole (81) was very similar to previous drills except slightly better in my opinion with almost the full interval strongly mineralized. The best section was 173.5 m @ 3.07 g/t au / 4.5 g/t ag which is superior to the average grade in the breccia..

Hole 84 hit over an ounce per tonne silver but over a much smaller interval.. 1.9 m @ 2.6 g/t au / 52.1 g/t ag.. regardless this is uncharacteristic for the breccia which has for the most part been characterized by high-grade gold and lower grade silver while the bulk tonnage is the opposite with high-grade silver and “low grade” gold @ 0.75~ g/t au average.

Southwest Holes – By far the most exciting and overlooked part of news release…

Holes previously drilled at the 1 kilometre step-out to the main deposit have yielded the following results: 15.5 @ 0.92 g/t au / 2.2 g/t ag, 36 m @ 0.96 g/t au / 1.00 g/t ag, 21 m @ 1.34 g/t au / 0.85 g/t ag, 8 m @ 3 g/t au / 1.3 g/t ag. 46 m @ 0.75 g/t au / 2.7 g/t ag, 14 m @ 1.27 g/t au / 4.6 g/t ag.

The new holes reported were step-outs which is the best part!

Hole 78 was drilled 100 metres north and 300 metres west of drilling to the southwest of the main deposit (quite a significant step-out) and hit 5 m @ 0.5 g/t au / 12.7 g/t ag, 3.7 m @ 0.52 g/t au / 4 g/t ag, 4.62 m @ 0.54 g/t au / 11 g/t ag.

These holes may not look impressive at first glance but these are blind step-outs over 300 metres west of any previous drilling and now give us a 1.3+ km step-out to the west of the main deposit. Also what’s exciting is these holes are hitting elevated silver values to any drilled previously in the southwest.

Hole 83 was drilled 200 metres north of hole 78 (the already 300 metre step out) and hit 4 m @ 0.9 g/t au / 19.8 g/t ag, 24 m @ 0.43 g/t au / 1.1 g/t ag, 63 m @ 0.42 g/t au / 5.0 g/t ag, 17 @ 2.12 g/t au / 4.1 g/t ag.

The last interval 17 m @ 2.12 g/t au / 4.1 g/t ag is the best interval drilled in the southwest to date and it was a complete blind step-out from another blind step-out (78), extremely impressive for the trial and error going on where there is no previous exploration.

The southwest potential deposit now measures a minimum 300 metres in width and 400 metres in strike from north to south… this could be a whole new deposit on our hands with better silver grades than the main bulk tonnage and very similar gold grades…

The progress being made here is unreal….. Caliche was right when he said they’ve made a new discovery to the southwest and with 4 holes drilled at similar grades I don’t think this is a fluke at this point.

Especially encouraging in hole 83 was the 63 metre interval with continous mineralization that graded 0.4 g/t au / 5.0 g/t ag… this is a hole with almost 0.5 g/t au equivalent and it traces mineralization north and west of any previous drilling in the southwest.. the smaller intervals at first had me a little worried but a 63 metre interval in a previously unexplored area showing good mineralization certainly puts a more confidence in my analysis of the southwest deposit as there is consistent mineralization there and that thesis has now been proven and is in the process of being followed up on.

March 22nd, 2012
Categories: Uncategorized . Author: caliche