Drill Results For San Simon Project
VANCOUVER, BC - Colombia Crest Gold Corp. reported that diamond drilling of 1,355 metres was completed at the Paititi and Mina Vieja zones of its 100% owned San Simon Project, Beni Province, Bolivia. The results of this included 1.5 metres of 14.7 grams per tonne gold and 1.5 metres of 6.71 grams per tonne gold. Additionally, the Company has initiated discussions with a small-scale mining company to develop the Trinidad-Mina Vieja portion of the project, where the NI 43-101 resource calculation was completed in December 2010.
"The intention of drilling Paititi was to verify and expand the disseminated mineralization reported prior to 2000 - using these newly updated drill results, the Company can now confirm a strategy for the project," commented Hans Rasmussen, President and CEO. "At Mina Vieja, discussions are advancing with a small-scale miner to develop the Trinidad portion of the project where SRK completed the resource calculation. Colombia Crest is excited to have a production-focused team eager to extract gold from the proven resource outlined by the Company drilling at Trinidad."
Nineteen core holes were drilled at San Simon between July and September 2011, fourteen at Paititi and five at Mina Vieja. The holes were designed to corroborate previous drill results and test bulk-tonnage potential. The Mina Vieja results do not suggest bulk-tonnage potential, but they do include intercepts of near-surface mineralization that the Company believes could be mined by an operator at Trinidad while further developing and possibly enhancing the project's economics and producing royalty revenue payable to Colombia Crest. However, mineral resources that are not reserves do not have demonstrated economic viability. There can be no assurance that the Company will conclude an agreement for development of any portion of the property, or than any proposed development will be successful.
Leduc Drilling of La Paz was contracted for the drilling and provided a truck-mounted LY 44 core drill. Fourteen holes totaling 1081.1 metres were drilled at Paititi. The drill then moved to Mina Vieja, where 274.3 metres were drilled in holes M11-01 to M11-05. All of the drilling was performed with HQ diameter core tools. Recovery was excellent except in strongly fractured to sandy intervals interpreted to be fault zones and/or locally deep saprolitic weathering, mostly at Paititi. Overall recovery was slightly better than 95% at Mina Vieja and 91% at Paititi.
Samples were mostly of 1.5 metre core lengths with some variation on account of recovery and geology. The samples were prepped in the lab at San Simon camp by crushing to minus 0.25 inch mesh and using several passes through a riffle splitter to split 400 to 500 grams with which to make two pulps in the ring and puck pulverizer. Assaying Sample pulps were shipped from San Simon camp to ALS Chemex in Oruro, which exported them for analysis to ALS in Vancouver, Canada. Only gold was analyzed by 30 gram fire assay with Atomic Absorption finish (gravimetric finish for +10 grams per tonne).