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Metminco confirms high-grade gold at prospect near proposed Colombian gold mine

Prior to drill-testing the prospect, the company will conduct a mapping program to produce detailed 3D modelling of the prospect’s mineralisation.
Metminco confirms high-grade gold at prospect near proposed Colombian gold mine
The Quinchia Gold Project is 100 kilometres south of Medellin

Metminco Limited (ASX:MNC) has confirmed high-grade gold in underground channel sampling at the Chuscal prospect within its Quinchia Gold Project in Colombia.

Chuscal is one of two targets being developed in the area around Metminco’s proposed Miraflores mine which is an advanced project in the mine-permitting stage.

The company will begin drilling at Chuscal once exploration titles are granted and all permits and approvals obtained, which it anticipates will occur early in the second quarter 2019.

The channel sampling results were obtained by a previous owner in 2012 and have only now undergone full analysis and JORC-compliance.

Chuscal is held in a joint venture with AngloGold Ashanti (ASX:AGG) where Metminco is earning a 51% interest through the expenditure of US$2.5 million over 3 years.

READ: Metminco enters JV to develop Colombian gold project with AngloGold

Metminco executive chairman Kevin Wilson said: “Chuscal is an exciting project for us as it could make a significant positive impact on the head-grade and tonnage throughput into the Miraflores plant.

“The underground results confirm the presence and continuity of high-grade gold veins within the porphyritic diorite at Chuscal, which itself is mineralised.

“We now need to focus on drilling to delineate the extent of the mineralisation and demonstrate the presence of other high-grade gold zones within the extensive surface gold anomaly.

“Compared to Miraflores and Tesorito, Chuscal has the advantage of being potentially an open-cut operation with high-grade gold zones.”

Deposits and targets within Metminco’s Quinchia gold portfolio

 

READ: Metminco launches rights issue to advance Quinchia Gold Project

The channel sampling comprised 120, two-metre long samples taken along the length of underground workings at a small-scale historical mine known as the Guayacanes tunnel.

These delivered gold grades up to 250 g/t with 10% of samples grading over 10 g/t at an average of 62.7 g/t.

The higher gold grades are associated with two or three vein systems with elevated silver grading up to 59 g/t as well as associated arsenic, antimony, tungsten and tellurium.

In the cross-cuts between the identified gold veins, continuous lower-grade mineralisation of 1-3.9 g/t gold is present.

READ: Metminco focused on its portfolio of gold assets at Quinchia in Colombia

Chuscal features an extensive undrilled surface gold geochemical anomaly, defined by rock-soil and rock chip sampling, with high-grade sample results up to 54 g/t.

The samples from the central zone of the prospect average 2.66 g/t and lie within a 900 by 530-metre envelope averaging 1.76 g/t.

Analysis of the multi-element geochemistry and correlation with surface mapping confirms that gold mineralisation is hosted by a porphyritic diorite but also extends into altered monzonite.

Two types of mineralisation are clearly distinguishable: an early stockwork phase of disseminated mineralisation averaging 1.5 g/t; cut through by a later high-grade epithermal vein population average about 8 g/t.

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Chuscal and the second target Tesorito are 1,700 and 500 metres, respectively, from the proposed Miraflores gold mine.

Miraflores’ deposit is 100% owned by Metminco and holds a 0.88-million-ounce resource.

The proposed mine is undergoing an environmental impact assessment due for submission this year, which also includes assessment of a gold treatment plant.

Along with Miraflores, the Quincha project also contains the Dosquebradas deposit which is 100% Metminco-owned and has a 0.92-million-ounce gold deposit estimated under NI 43-101.

Recent drilling at the Tesorito prospect intersected 253 metres at 1.01 g/t from surface, including 64 metres at 1.67 g/t from 144 metres.

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