High-grade discovery enhances Eldorado project

The discovery of a high-grade zone is enhancing the potential of the La Trinidad gold project held by Eldorado (VSE) in Sinaloa state, Mexico.

The drilling is part of a program to expand and upgrade the minable reserve category of the Taunas zone, one of several mineralized stockwork/breccia zones exposed on the property surface. La Trinidad hosts a preliminary geological resource of one million tons grading 0.081 oz. gold per ton. Recent drilling on the property intersected, on an “uncut basis,” 1.05 oz. gold per ton over 19.68 ft., contained in a much wider mineralized zone which, on a “cut basis,” averages 0.084 oz. over 150.88 ft. from 144.32-295.20 ft.

Earlier this year, Eldorado released promising results from its first 19 reverse circulation drill holes on the property. Selected results from this round of drilling include: 98.4 ft. of 0.088 oz. gold; 105.0 ft. of 0.097 oz. gold, and 91.8 ft. of 0.10 oz. gold per ton.

Selected results from more recent drilling include: 78.72 ft. of 0.115 oz. gold from 78.72-157.44 ft.; 72.16 ft. of 0.103 oz. gold from 91.84-164.00 ft.; and 78.72 ft. of 0.087 oz. gold from 0-78.72 ft. These results are all on a cut basis (all assays cut to 0.233 oz. gold per ton).

Eldorado is of the view that the project represents a major new gold camp in Mexico. The junior recently staked an additional 45,300 acres to cover a geological trend parallel to the Rosario district, a region which has produced over two million ounces of gold.

Eldorado has been active in Mexico since its inception, and is best known for the 70% owned La Colorada gold mine near Hermosillo, in Sonora state. This heap-leach operation will be officially opened shortly. Production is expected to be in the range of 22,000 oz. during the first full year of operation.

Eldorado has other advanced projects in Mexico, including La Trinidad, which is a joint venture held 51% by Eldorado, and 49% by Almaden Resources (VSE). So far, over 79 holes representing some 14,400 ft. have been completed. The encouraging results have prompted the planning of an additional 10,000 ft. drill program.