The San Albino Gold Deposit
is located near the southwest end of a 20 km long mineralized trend defined by Golden Reign as the Corona de Oro belt. The deposit consists of a series of shallow dipping quartz sulphide veins hosted by graphitic argillaceous schist. The San Albino resource model consists of three high grade, vein systems - the San Albino, Naranjo, and Arras veins - over a strike length of 850 metres, a down dip extension of 925 metres, with a minimum true width of one metre and average true width of 2.6 metres.
Only 0.6 square kilometres of the 2 square kilometre San Albino Mine area, within the Company's total 138 square kilometre land package, has been drill tested. All mineralized zones remain open at depth and along strike in both directions.
Highlights from 2012 drill intercepts of the San Albino zone include:
- Indicated resources of 95,000 ounces gold equivalent ("AuEq") at 8.47 g/t contained in 348,000 tonnes using 0.5 g/t open pit and 1.5 g/t underground gold equivalent cut-offs.
- Inferred resources of 805,000 ounces gold equivalent at 7.43 g/t contained in 3,371,000 tonnes using 0.5 g/t open pit and 1.5 g/t underground gold equivalent cut-offs.
- 20.70 g/t gold and 16.6 g/t silver over 5.50 metres in DDH SA 12-46, including
23.29 g/t gold and 16.3 g/t silver over 2.20 metres
- 13.45 g/t gold and 16.6 g/t silver over 6.50 metres in DDH SA 12-49, including
54.47 g/t gold and 63.4 g/t silver over 1.50 metres
- 9.07 g/t gold and 14.3 g/t silver over 6.00 metres in DDH SA 12-48, including
17.95 g/t gold and 25.1 g/t silver over 2.40 metres
The Company has contracted Canchi Perforaciones de Nicaragua, S.A. for an initial 4,000 metres of a planned 20,000 metre program. The aim of the 2013 definition drill program at the San Albino Gold Deposit is to increase both open-pittable and underground resources via additional step-out drilling.