Antofagasta Gold (AN-V), which recently changed its name from Windamere Ventures, says initial drilling at its Capricornio property in Chile confirms it has made a regional-scale, low-sulphidation epithermal gold discovery.
Its fully owned Capricornio property is located 80 km northwest of Yamana Gold’s (YRI-T, AUY-N) El Penon gold mine and 20 km west of Xstrata’s (XTA-L) producing Lomas Bayas mine.
Highlights from initial drilling at the project, which Antofagasta Gold has optioned from Sociedad Quimica y Minera (SQM-N), returned intercepts that included 12 metres of 2.65 grams gold per tonne and 6.38 grams silver per tonne in drill hole 12-1; 17 metres of 3.60 grams gold and 20.70 grams silver with 5 metres of 6.20 grams gold and 57.78 grams silver in hole 12-2; and 4 metres of 5.28 grams gold and 4.92 grams silver in hole 12-8A.
The nine-hole drill program covered more than 400 metres of the cumulative 20 km of known, gold-bearing vein strike, and eight of the holes returned a weighted-average grade of 4.54 grams gold equivalent per tonne over 4.1 metres, with intercepts ranging between 2 metres and 17 metres.
The initial drill program was designed to test near-surface mineralization and verify historical results to a maximum depth of 150 metres from surface.
The junior also reported that a ground magnetic survey north of the exposed vein system suggests there could be another 3 to 6 km of host vein-structure strike below a shallow alluvial cover.
At press time Antofagasta Gold was trading at 80¢ per share within a 52-week range of 30¢ to 85¢. The junior has 48 million shares, fully diluted.
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