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Latin American Minerals surges after latest drilling results

Last updated: 12:05 18 Aug 2017 EDT, First published: 07:05 18 Aug 2017 EDT

Gold pour
Visible gold was noted in several drill holes

Shares in Latin American Minerals Inc (CVE:LAT) surged after the exploration company provided the results from four holes from its latest drilling program.

The company drilled seven shallow holes into the northwest end of the Discovery Trend - the Temi Zone - at its Paso Yobai asset in Paraguay.

Gold mineralization has been found in all holes assayed to date. Visible gold was noted in several drill holes, the company said.

Results for the final three holes are still awaited, but meanwhile here are the highlights from the latest four holes for which results have been achieved.

  • Hole LAT-80.1: 0.60 metres (m) featuring 24.40m grams per tonne (g/t), with visible gold noted in the interval, and 0.99m at 0.64 g/t gold
  • LAT 80.2: 1.07 metres, with 0.64 g/t gold
  • LAT-81: 0.56 metres at 0.36 g/t
  • LAT-82: 1.51m at 0.97 g/t, including 0.44m at 2.73 g/t with visible gold.

"It is very exciting that we see the same nature of mineralization nearly 2km away from previous high grade drilling results,” said Paul Sarjeant, vice president of exploration at the company.

“In each drill hole reported to date, the targeted altered and mineralized dyke was intersected where anticipated. In each hole multiple zones of the typical manganese oxide, carbonate and clay alteration with quartz and carbonate veinlets that hosts the gold mineralization were drilled. The highly variable assay results indicate that we are likely not in the core of the system but we are very excited by the bonanza grades we continue to encounter," he added.

Shares in Latin American were up 4.0% at C$0.13 on the news.

Having done some shallow drilling, the company said it has now begun the first ever deep drilling program at its Paso Yobai gold project.

The company is currently testing large geophysical anomalies underneath the Discovery zone. After testing these targets the company is planning to move its fully owned drill rig to the Cresta and Ycua Pora targets on the X-Mile trend.

The X-Mile trend is 14.8km long containing several large gold in soil geochemical anomalies and coinciding geophysical anomalies. The Cresta and Ycua Pora targets contain gold in soils across an area of approximately 2.5km by 1km.

"The high grades we have encountered to date make us very excited to be the first to explore the significant potential of this project at depth,” Sarjeant said.

“After completing a re-evaluation of all aspects of the geophysical database a number of high quality targets have been developed and await drill testing. Though previously believed to exist, recent work has given more credibility to the concept of a large intrusive complex at depth, roughly corresponding to the extent of the X-Mile trend.

“In addition, numerous district sized structural breaks with coincident gold in soil geochemical anomalies appear to be strengthen this most recent interpretation as a potential source of mineralizing fluids for the Paso Yobai gold system," he added.

Meanwhile, Latin American has completed the circuits for both gravity and VAT leach gold recovery at its Independencia Mine reconfiguration.

The company currently has two VAT leach pads full with roughly 5,000 combined dry tonnes of tails feed. The company has begun the process of leaching material in the first VAT and hopes to soon begin the recovery process in the second VAT.