Gold explorer Emu reckons it could be onto something big in Chile
Chilean explorer Emu NL (ASX:EMU) is comparing its Vidalita project with Goldfield’s (NYSE:GFI) nearby 3.5 million ounce Salares Norte deposit after some early exploration success.
The latest round of drilling includes what Emu calls Vidalita’s ‘discovery hole’ – 24 metres at 5 grams per tonne gold and 28 grams per tonne silver, 20m from surface.
This intercept was part of a larger 48m section grading 2.8 grams per tonne gold and 19 grams per tonne silver, 19m from surface.
“The width, grade and style of the mineralised intersection at Vidalita in [the discovery hole] compares favourably with the 2011 discovery hole at Salares Norte which intersected 96m at 1.5 grams per tonne gold and 61 grams per tonne silver,” the company told investors.
Early studies show Salares Norte could produce 345,000 equivalent ounces of gold each year at all-in sustaining costs of $US575 ($817) per ounce over an initial 10 years.
Vidalita is shaping up as a large, shallow mineralised system about 1.4km long, the company says.
Emu is compiling drilling results to help prioritise follow-up drilling.