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Infill drilling at the Veta Sur vein system at Continental Gold’s Buritica project in Colombia has increased the company’s confidence level in the continuity of the grades within the system.
Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.
Price: $1.98
Market cap: $251 million
Cash estimate: $50 million
Project: Buritica
Country: Colombia
Ownership: 100 percent
Resources: 8.39 million tonnes at 10.4 g/t gold, 31 g/t silver measured and indicated
Project status: revised resource and PEA expected H2 2015
Image courtesy of Stockwatch.
- Infill drilling at the Veta Sur vein system on the company’s 100-percent-owned Buritica project in Antioquia, Colombia has increased the company’s confidence level in the continuity of the grades within the system. The current drilling program is designed to upgrade the inferred resource to measured and indicated, while continuing to explore outside of the bounds of the known mineralization.
- Highlights from infill drilling within the existing Veta Sur resource area include 6.08 meters of 97 g/t gold and 17 g/t silver, as well as 7.1 meters of 19.9 g/t gold and 64 g/t silver. The mineralization at Buritica occurs as swarms of narrow, subparallel carbonate base metal gold/silver veins, with higher grades and often wider zones occurring when a later gold-rich phase overprints earlier mineralization. True widths in most holes are reported to be between 50 and 80 percent of the reported drill interval.
- In May 2014, using a 3 g/t gold cut-off, the company announced an updated measured and indicated resource estimate at the Buritica deposit of 8.39 million tonnes grading 10.4 g/t gold, 31 g/t silver and 0.5 percent zinc, with an additional 16.7 million tonnes of inferred grading 7.8 g/t gold, 24 g/t silver and 0.3 percent zinc. While calculating the resource, each vein was given a hard geological boundary to prevent smearing the high grade between vein systems. The total resource is comprised 60 percent from the Yaragua vein system and 30 percent from Veta Sur.
- The November 2014 PEA outlines gold production during the first five years of 314,000 ounces of gold per annum at an expected cash operating cost of $389 per ounce. The project has an initial capital cost of $737 million with sustaining capital of $346 million over the 18-year life. The vein systems are near vertical and are expected to be mined using the long-hole stoping method accessed from a development drive situated in the valley bottom. The model predicts an overall average mining dilution of 58 percent due to the less selective, but more cost-effective long-hole stopping method. Waste material will be backfilled into mined-out stope, providing the working platform for the next level.
Development history: small, pre-Spanish historical producer; Continental Gold acquired the property in 2007
Current drilling: 6.06 meters at 97 g/t gold, 17 g/t silver; 7.1 meters at 19.9 g/t gold, 64 g/t silver
Risks Analysis
Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results.
Relevant Disclosures Applicable to: Drill Tracker Weekly
- The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following company: Fission Uranium Corp. (TSX.FCU)
- Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell
- In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d’Or, Québec. Travel to and from the site in Val d’Or were paid by Integra Gold Corp.
Analyst Certification
I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.