Lundin Gold (TSX: LUG) (OTCQX: LUGDF) announced initial drills results from its 2022 near mine exploration program at its Fruta del Norte (FDN) gold mine in southeast Ecuador.
The drill program results show new mineralized zones to the south and at depth at FDN’s presently defined mineral resources. The holes to the south show:
- Drillhole FDN2022-009 intersected 5.11 g/t Au over 30.3m from a depth of 267.7m, including 9.79 g/t Au over 14.0m from 284.0m
- Drillhole FDN2022-006 intersected 3.99 g/t Au over 4.8m from 181.7m, and 4.40 g/t Au over 8.1m from 213.9m
Meanwhile, the holes drilled under the southern portion of the FDN show:
- Drillhole UGE-DD-22-008 intersected 4.11 g/t Au over 23.0m from 197.7m, including 6.03 g/t Au over 10.0m from 202.7m
- Drillhole UGE-DD-22-005 intersected 3.53 g/t Au over 44.9m from 134.8m, including 5.25 g/t Au over 12.9m from 134.8m, and 4.32 g/t Au over 15.0m from 164.7m
“Results demonstrate the significant potential of the epithermal system beyond the known limits of the FDN deposit and support our belief that the near-mine program will enable expansion of current Mineral Resources,” said Ron Hochstein, president and CEO.
“To advance this objective, we are increasing our near-mine exploration efforts with a minimum of 15,500 metres of drilling in 2023 compared to 8,600 metres drilled in 2022.”
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Near mine exploration expands FDN mineral resource envelope
The near-mine exploration program started in Q3, 2022. It focuses on expanding the FDN mineral resource envelope, and testing unexplored areas around the mine site. So far to date, 8,600 metres have been drilled across 16 holes, including surface and underground.
A surface drilling program continues to explore sectors across the structures of the deposit south of the FDN mineral envelope. The company intercepted a new mineralized zone along the southern extension of the east fault. Consequently, initial results suggest the epithermal system continues in this southern direction.
The surface drilling program drilled nine holes in 2022. Most of which are located between 200 and 900 meters south of the FDN mineral resource envelope boundary. Results for several drill holes are pending.
Most of the holes intercepted wide hydrothermal alteration zones similar to those at the FDN deposit. The zone is open at depth, along strike to both the north and south, where gold and epithermal pathfinder elements remain untested. The 2023 program has already started. The company has one rig drilling on the new zone and a second rig will be joining it shortly.
Completed holes from the 2022 near-mine program and location of the new mineralized zone intercepted to the south of FDN. Image via Lundin Gold.
The near-mine program’s underground drilling focuses on the continuity of the FDN deposit and west structure at depth. Lundin Gold completed seven drill holes under the southern portion of the envelope. Results returned indicate new zones where the deposit remains open at depth. Results for the holes are pending.
2023 exploration program includes underground and surface drilling
Indications from Lundin’s 2022 drilling campaign suggest potential for extension of the FDN mineral resources at depth, as well as to the east, west and south of the envelope. The 2023 near mine program is targeting 15,500 metres of drilling at a cost of $9.4 million.
Furthermore, Lundin Gold finished 17,600 metres of drilling across several targets in the southern Suarez basin as part of its regional exploration program. The program identified indicators pointing towards the presence of buried epithermal deposits in the basin. Lundin has since implemented a detailed geological interpretation of exploration data and other surface works, and several targets have been identified and been tested.
Lundin investigated the Quebrada La Negra and Puente Princesa targets with a total of 6,987 metres drilled across nine holes. The drilling program found a new structure associated to the west border at Quebrada La Negra. The border is represented by wide hydrothermal alteration zones with breccias, veins and disseminated sulfides.
Also, the program drilled an arsenic soil anomaly, where drilling intercepted a structure with quartz veins, hydrothermal carbonate-silica breccias and sulfides hosted in the Santiago formation. This alteration zone possibly represents the northern continuity of the Puente Princesa structure originally defined in Q2. All results are pending.
Lundin Gold drills four holes at Barbasco Norte
The company also completed four dill holes at Barbasco Norte for 2,123 metres to test a continuous geochemical gold soil anomaly at the edge of the Suarez Basin. The drilling intercepted low grade values of gold and epithermal pathfinder element arsenic in narrow hydrothermal alteration zones like those found in the epithermal systems like Fruta del Norte. The data suggests an increase of hydrothermal alternation in the east, close to the basin border where additional drilling is planned for 2023.
Finally, at Barbasco, the program explored several indicators of epithermal systems in distinct target sectors. Lundin Gold drilled nine holes and 6,351 metres, and intercepted few and limited hydrothermal alteration zones at depth. The present interpretation suggests more drilling is required to find untested sectors further east.
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Calibre Mining (TSX: CXB) (OTCQX: CXBMF) is another company demonstrating strong performance potential based for 2023. Its most recent assays from the Pan Mine property in the Battle Mountain Eureka gold trend in Nevada returned high value prospects.
Specifically, the Coyote target mine included significant mineralization.
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1.36 g/t Au over 13.7 metres including 2.78 g/t Au over 4.6 metres in Hole PR22-238
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0.61 g/t Au over 18.3 metres in Hole PR22-237
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Initial results located approximately 3 kilometres south of the Pan South open pit
Calibre shares are trading at $1.12.
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