Ecuadorian boosts resource at Gaby deposit

In southern Ecuador, the gold resource for the Gaby gold deposit has doubled following a geologic evaluation of drill results.

Some 72,160 ft. of reverse-circulation and core drilling were used to expand the resource to 3.5 million from 1.6 million oz.

Ecuadorian Minerals (TSE), the current operator, holds a 100% interest in the Gaby concession and a 51% interest in the Guadalupe concession immediately to the south. (Vancouver-listed Zappa Resources holds the remaining 49% stake in the Guadalupe.)

The U-shaped porphyry deposit straddles the boundary between the two concessions.

The resource evaluation is based on mineralization to a depth of 900 ft. and includes a resource of 1.3 million oz. from the northern part of the Guadalupe concession.

Ecuadorian Minerals secured the option to the Guadalupe concession early in 1995 when it realized the potential to the south of the Gaby concession. The company will earn the 51% interest by spending US$3 million on the concession over the next three years.

Highlights of the drilling include: 610 ft. grading 0.035 oz. gold per ton from hole GRC-72; hole GRC-1 hit 544 ft. grading 0.047 oz.; and GRC-146 cut 354 ft. grading 0.053 oz.

Mineralization at Gaby covers an area measuring about 1 by 3.4 miles. Prefeasibility drilling will resume this November in an effort to define the main gold resource and evaluate the overall zone of gold mineralization.