thick high grade silver discovered at cascavel · mark papendieck nicholas read managing director...
TRANSCRIPT
ASX Release
08 May 2013
Contact
Mark Papendieck
Managing Director
Suite 9, 5 Centro Ave
Subiaco WA 6008
P (08) 9463 3241
F (08) 9226 2027
Registered Office Suite 2, 12 Parliament Place
West Perth WA 6005
PO Box 902
West Perth WA 6872
P (08) 9482 0540
F (08) 9482 0505
www.orinocogold.com
Issued Capital
62,000,000 Ordinary Shares
15,000,000 Performance Shares
8,000,000 Listed Options
19,700,000 Unlisted Options
ASX Code
OGX (Ordinary Shares)
OGXO (Listed Options)
Thick High Grade Silver
Discovered at Cascavel
Outstanding Silver Assay of 40 oz/tonne over 17.6m
(21gpt Gold Equivalent) Significantly Expands Projects Potential
1,263 gpt Ag (40 oz/t) over 17.6m from a depth of 101m down hole.
Strategically located between two previously reported gold bearing horizons.
Silver bearing horizon visually identified in 21 of 22 holes over the Cascavel area of 1,600m x 600m, offering potential for large tonnages.
Assays are awaited for a further 20 holes.
Useful copper and tungsten credits recorded in the first hole.
Orinoco Gold Limited (ASX: OGX) is pleased to announce that extremely high grade silver has been intersected over very significant widths at the Cascavel Prospect in the Company’s 70% owned Faina Goldfields Project in central Brazil. The discovery follows a review of the zone of carbonate alteration between the high-grade gold-bearing zones previously targeted by drilling at Cascavel. The first multi-element assay of this zone has delivered an exceptional intersection of 17.6m @ 1,263gpt Ag from 101m down-hole from the initial hole. This result significantly enhances the potential for the economic development of a high-grade precious metal mine, producing gold and silver with copper credits.
Given the recognition of strong geological similarities between Orinoco’s Faina Goldfields Project and Canada’s prolific multi-commodity Abitibi greenstone belt, the Company undertook poly-metallic assays of the 30m thick carbonate alteration zone that vertically separates the two gold bearing zones targeted by the previous drilling. While assays have so far only been received for the first hole, the grade and width are of such significance that they are being immediately brought to the attention of the market. The 17.6m assay from hole CDP-021 returned 1,263 g/t silver (40.6 oz/t). The gold equivalent grade of the intersection is 21 gpt1. The zone containing the high-grade silver also contains copper and tungsten (table 1).
1 Based on a gold price of AUD1435.01, a silver price of AUD23.53 and a Ag:Au ratio of 60:1.
The Company is proceeding to assay the same mineralised sequence in the other 20 holes that had previously been drilled to test the gold zones and reached the depth of the carbonate zone. As with the two units that host the high-grade gold mineralisation at Cascavel, drilling has shown that the silver-bearing horizon is also structurally controlled and largely geologically continuous along strike (1600m) and down dip (600m). The strike of Cascavel remains open along strike and down dip. While the 6,000m diamond drilling program completed earlier this year at Cascavel was designed primarily to identify structure as a priority over grade – as is normal with nuggety gold deposits – the existing drilling through the carbonate zones will provide valuable information regarding the grade of the silver-bearing mineralisation. Implications for Project Advancement The Company needs to assess the results of the silver assays before commencing the planned exploration decline at Cascavel to assess the gold horizons. Matters under review will include the dimension of the project in terms of tonnages, process routes and product mix. The scale of the project could be significantly larger if it incorporates both gold and silver production circuits, although still with the potential to be progressed in stages if this is determined to be the optimum development scenario.
Orinoco Managing Director Mark Papendieck, said: “It’s always nice to be measuring precious metal exploration results in kilograms rather than grams – but there are several very important implications which flow from the discovery of high-grade silver at Cascavel. “Firstly, the discovery continues to validate our view that the Faina greenstone belt shares many of the geological attributes that have made the Abitibi greenstone belt in Canada one of the richest mineral provinces in the world2. “Secondly, and very importantly, the location of the high-grade silver intersection between the two gold zones at Cascavel is potentially significant for the economics of any future operation at Cascavel. If the pending assays confirm the continuity of the high-grade silver horizon between the gold zones then we will have a large mineralised unit incorporating two gold zones and a silver/copper zone that is likely to be amenable to extraction via open pit.
-ENDS- For further information, please contact: Mark Papendieck Nicholas Read Managing Director Managing Director Orinoco Gold Limited Read Corporate 08 9463 3241 08 9388 1474 [email protected] 0419 929 046
2 170 million ounces of gold, 35 billion pounds of zinc, 15 billion pounds of copper, and 400 million ounces of silver and significant nickel production.
Competent Person’s Statement: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Klaus Petersen who is a member of the Australasian Institute of Mining and Metallurgy and CREA. Dr Klaus Petersen is an employee of Orinoco Gold Limited and has sufficient experience, which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Klaus Petersen consents
to the inclusion in this report of the matters based on the information in the form and context in which it appears.
Figure 1. Location of CDP-021 at Cascavel.
Table 1. Drill Results from CDP-021.
Assay Methods: 150# Screen Fire Assay (Au), Inductively Coupled Plasma Atomic Emission Spectrophotometry (Ag, Cu, W)
Figure 2. 3D Interpreted Geological Model of Cascavel with the inferred Carbonate zone (silver bearing horizon) highlighted in blue.
Figure 4 & 5.
Location of the Faina Goldfields
Project and the Cascavel & Eliseo prospects.