Bastion sampling sets the stage for Capote gold drilling
Link copied to
Further work supports Bastion’s view that the Capote gold system in Chile extends over a strike length of about 3.2km.
This follows the completion of its due diligence rock chip sampling over the Capote mining district, which included the San Juan project and surrounding licences that was acquired in August.
Bastion Minerals (ASX:BMO) took 130 samples across the San Juan, Resurgimento and Yayito vein systems that returned average assays of 3.08 grams per tonne (g/t) gold and a maximum of up to 33.6g/t gold.
Anything above 5g/t is generally considered high grade.
Planning is underway for a diamond drilling program totalling about 5,000m – the first drill program to be carried out in the district – across numerous drill targets.
“Following a comprehensive review of the historic mining data, initial sampling on the shallow unmined parts of the San Juan, Resurgimento and Yayito veins has delivered some outstanding rockchip results and more importantly, shown great continuity along the cumulative 3km strike of the three main vein systems,” executive chairman Ross Landles said.
“We are pleased with the progress and preparation of the first-ever exploration drilling program to be undertaken in this historically significant gold district.
“The proposed 5000m program will be the largest completed by the Company, and the potential for transformational new discoveries across our under explored package is the most exciting part of the up-coming program.”
The Capote district was mined for over 300 years until 1954 when gold prices dropped below US$350 per ounce.
About 1.7Moz of gold with an average grade of 52g/t is estimated to have been processed through the Capote mining operation from the San Juan vein and the surrounding high-grade gold veins.
Despite this, no modern exploration has been conducted in the region.
In August, the company secured an option to acquire the San Juan gold project and its surrounding licences, which are surrounded by its existing licences.
This increased the size of its Capote gold project up to 15 exploration and 39 mining licences covering a total area of about 88.5sqkm.
Bastion notes that the San Juan is the largest high-grade gold bearing vein system in the district with over 1.5km of strike and mined to roughly 350m in depth.
It remains open at depth and along strike.
The Resurgimento vein lies 1.4km east of San Juan and extends for over 3km and has been mined in places up to about 150m in depth while Yayito is 1km south of and along strike from the San Juan system with veins ranging in width from 0.5m to 2m wide and strike of up to 500m.
This article was developed in collaboration with Bastion Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.