Agate to drill in Chile

Drilling is expected to begin soon at the Nancagua gold-silver project south of Santiago, Chile.

Partners Agate Bay Resources (VSE) and Princeton Mining (TSE) plan to drill at least 1,000 metres in a 10-to-15-hole program. The objective is to test six of the main mineralized structures and the intervening brecciated areas between them.

Agate is earning a 75% interest from Princeton by spending $1.5 million over three years. Upon completion of the earn-in, Princeton has a one-time right to back-in for a 51% interest by spending $1 million over two years. Previous work by Agate Bay, including soil sampling, rock chip sampling and geophysics, identified a widespread epithermal system.

The best exposure of the six main targets includes a 100-by-125-metre area which returned an average grade of 1.86 grams gold per tonne from sampling on 15 veins and the surrounding wall rocks.