Arauco begins trenching at Guindo

A large-scale trenching program is about to begin at Arauco Resources’ (VSE) Guindo gold property in southern Chile.

To date, geochemical sampling and hand-trenching have

identified at least five mineralized zones, three of which

returned a total of 279 samples with an average grade of 4.39 grams per tonne.

Within the A zone, 11 trenches totalling 347 metres yielded 151 samples averaging 3.54 grams. The B zone, situated 100 metres to the east, returned 86 samples averaging 6.3 grams from 16

trenches totalling 233 metres.

Hand-trenching in the C zone, which lies 75 metres east of the B zone, returned 4.56 grams over a sample length of 46 metres.

Arauco initially thought it was dealing with a disseminated type of deposit, but, based on a visual inspection of the trenches, the company believes the surface mineralization originates from a series of northwest-trending, sub-parallel, vertically dipping quartz vein structures of varying widths which range between 1 and 6 metres.

The large-scale trenching is aimed at testing the continuity of the grade, as well as the width of the vein structures, and

identifying the source of the extensive mineralized quartz

boulders found in other areas of the property.

Fred Hewett, Arauco’s vice-president and chief operating officer, says the current phase of trenching should be completed in June, at which point drilling will commence. An exploration budget is set at US$600,000.

Arauco has 8.3 million shares outstanding and working capital of $1.9 million. Santa Elina Gold (TSE), with a 66% interest, is the company’s largest shareholder.