Exploratory drilling began in 2010 in the Con Virginia Zone (central area of the La Virginia District) and then moved to additional targets in the El Campo Santo Zone (located to the north) and the Las Huatas Zone (located to the south). The main focus of the drilling program in 2011 has been at the Las Huatas Zone. A map showing the location of these zones can be found below.
In the Las Huatas Zone, located 1,200 metres to the south of the Con Virginia Zone, high grades of gold and silver mineralization have been intercepted at elevations ranging from approximately 1,810 metres (near surface) down to the lowest tested portion of the system at 1,470 metres. This represents a minimum of 340 metres of vertical extent of high-grade gold and silver mineralization. Step-out drill holes are targeting this mineralized system on 40 to 50 metre centres to establish continuity and extent of grades. Grades of mineralization greater than 3.0 grams per tonne (gpt) gold-equivalent (AuEq) in this area are carried within multiple mineralized structures.
During
the course of 2011, the Company has constructed an additional 3
kilometres of road and 15 additional drill pads at La Virginia. Two core
rigs are currently dedicated to the project and the Company plans to
add a third core rig before the end of the year. Total drilling for the project now exceeds 17,000 metres in 55 completed core holes and the Company currently has two core rigs operating at the site. Thus far, the Company has drilled nearly 11,000 metres in 2011 of its planned 12,750 metre program at La Virginia.
Due to the positive progress made year-to-date, the Board of Directors approved an increase of US$1 million in the 2011 budget for La Virginia from US$2.7 million to US$3.7 million in October 2011. Drilling will continue to follow up on encouraging intercepts located in the three main zones, totaling seven kilometres of mineralized strike length, and will also be extended to cover an area to the south of the Las Huatas Zone. As the Company's understanding of this property continues to advance, it will consider increasing the intensity of its drill program at La Virginia to allow for the development of a National Instrument 43-101 compliant resource.
2011 Exploration
click to enlarge
2010 Drill Targets
Click to enlarge
Claim and Target Map2010 Drill Targets
Click to enlarge
LVSouth 10000 Scale DH Intercepts2010 Drill Targets
Click to enlarge
LVNorth 10000 Scale DH Intercepts