VenCan reports hot holes at Opoteca

Early results of diamond drilling on the Opoteca concession in central Honduras are providing encouragement to VenCan Gold (VCG-M)

Preliminary results were obtained from the first half of an initial 2,000-metre program at the company’s 90%-owned Opoteca concession.

A total of 17 short holes and 1,066 metres of diamond drilling has been completed in a 300-by-700-metre grid, which is 90%-owned by VenCan. Nine of the 16 holes that have been partially analyzed have intersected silver-gold mineralization.

Hole 1 intersected 2.83 metres grading 100 grams silver and 0.14 gram gold per tonne at a depth of 10.47 metres.

Hole 8, drilled 220 metres south of Hole 1, intersected 10.43 metres grading 94 grams silver at a depth of 15 metres.

Hole 11, drilled 400 metres southeast of hole 8, intersected 6.68 metres grading 103 grams silver at a depth of 27.4 metres and then intersected 10.27 metres grading 114 grams silver and 0.43 gram gold at a depth of 37.43 metres.

Hole 12, drilled 50 metres north of hole 11, encountered 1,610 grams silver over 0.35 metre at the 62-metre level. VenCan believes this to represent a vein that is crosscutting the host material.

Hole 14, drilled 120 metres northeast of hole 12, intersected 6 metres grading 170 grams silver at a depth of 2.6 metres.

Hole 15, drilled 20 metres north of hole 14, intersected 6.6 metres grading 162 grams silver and 0.47 gold at a depth of 6.1 metres.

Hole 16, drilled 50 metres east of hole 15, intersected 1.95 metres of 652 grams silver and 0.95 gram gold from surface, then intersected 6.7 metres of 372 grams silver and 0.31 gram gold at a depth of 28.8 metres.

Significant lengths of the recovered drill core have yet to be assayed for silver, and most drill core has been only partially assayed for gold values.

Preliminary indications are that a potential deposit would be amenable to open-pit mining and heap leaching. Drilling is expected to end this month.

VenCan has acquired five exploration concessions in Honduras, covering more than 30,000 ha.

The Garganta Profunda I, II and III concessions are in a favorable volcanic belt, in extreme southern Honduras.

The 7,940-ha Iguana concession, 30 km east of the capital city of Tegucigalpa, covers extensions of the same volcanic environment on which Garganta Profunda I, II, and II are located.

The Conchagua concession lies southeast of, and within, the same volcanic belt that hosts the Iguana concession. This 6,000-ha property has similar potential but carries the added geological benefit of being close to a large, syenitic, intrusive stock which is associated with an alteration halo. Within this alteration halo are several old gold workings, which are still being exploited by artisanal miners.

VenCan has budgeted $1 million in 1997 for initial exploration and drilling programs on these properties.

Meanwhile, back in Canada, Extendor Minerals, a company controlled by a former VenCan Gold director, has filed a $75-million breach-of-contract suit (plus $250,000 in punitive damages) against the company.

The director, Robert Hill, claims his alleged right of first refusal on VenCan’s disposition of the Edwards gold property near Dubreuilville, Ont., was ignored by VenCan when it made a deal with River Gold Mines (RIV-T) that permits that company to mine the property, recoup its costs and keep half of the profit thereafter.

According to a company statement, “VenCan considers Extender’s claim to be without any merit whatsoever and will vigorously defend the action.”