Jul 5 2013
Antofagasta Gold Inc. has commenced an exploration program on its recently optioned Pampas El Peñon property.
Location of Pampas El Peñon Property - Northern Chile
The Property consists of seven separate blocks surrounding the El Peñon Gold Mine operated by Yamana Gold, including the land package immediately to the west and north of the Pampa Augusta Victoria discovery veins (See Figure 1 below). Over 20 epithermal veins, with a cumulative strike length in excess of 10 km, have been identified on surface, some of which have been explored by trenching and/or reverse circulation drilling by previous owners.
The work program will focus on the claims located immediately north and west and north of Yamana Gold's Pampa Augusta Victoria project. These claim blocks contain several north south striking silver - gold bearing epithermal quartz veins identified on surface. The majority of these claims have not been fully characterized or drilled, while those with limited reverse circulation drilling only targeted near surface mineralization. In order to constrain the extent of the strike length and potentially mineralized areas within the veins, the Company plans to carry out additional mapping and sampling. In addition, geophysical surveys will be conducted over the prospective areas, consisting primarily of ground magnetic and CSAMT surveys. Once results of the surface exploration program have been received, the Company intends to drill test the higher priority targets within the claim blocks.
In order to maximize the efficiency and minimize the costs, an exploration camp is being installed on one of the claims blocks that will serve as a base for the up-coming exploration program.
Vernon Arseneau, Vice President of Exploration, commented "We are excited to start work on the Pampas El Peñon claim group. The quantity of north south trending epithermal veins within such close proximity and parallel to a major gold producing mine is encouraging. The fact that it has seen very limited exploration only adds to this potential. With limited near surface exploration, previous owners managed to identify several prospective veins and structures with highly anomalous Ag-Au values that remain open along strike and at depth."
The work program will focus on three areas:
Augusta Victoria West: the area hosts at least 13 north-south striking mineralized structures with anomalous Ag-Au values that have been identified on the claims immediately west of Yamana's Pampa Augusta Victoria developments stage mine. These structures commonly extend for more than 500m along strike and have seen very little exploration to date except for limited surface sampling and shallow drilling down to 50m vertical. Sampling returned anomalous values of trace elements in trenches along with Ag values up to 16.9 grams per tonne.
Pan de Azucar: the area is located 11km north west of Yamana's El Penon mine and contains an extensive NNW striking, five to ten meters wide quartz bearing structure that has been delineated by trenching and mapping for over 600m. The structure is anomalous in Ag (up to 13 grams per tonne) and Au (up to 1.2 grams per tonne) and remains open along strike. Only eight short reverse circulation holes were drilled on this structure, intersecting epithermal veins over 30 metres wide with anomalous gold and silver values.
Agusta Victoria North: This claim block lies immediately north of Yamana's property and on strike with the mineralized veins currently being developed. The area has not seen any previous exploration. There is little to no outcrop on the claims and the initial program will concentrate on ground geophysics aimed at identifying structures under cover. A program of exploratory reverse circulation drilling will follow once the geophysical surveys have been completed.
The exploration potential of the Pampas El Peñon property is considered excellent and the fact that it has seen no deep exploration only adds to this potential. With limited near surface exploration, previous owners managed to identify several prospective veins and structures with highly anomalous Ag-Au values that remain open along strike and at depth.
Readers are cautioned that the assay and sampling results summarized above are historical in nature and should not be relied upon.
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