Tuesday, 11th March 2008 (2387 views)

Geophysical, geochemical and geological exploration at the Paso Yobai gold project in Paraguay has demonstrated the existence of a "large" zone of gold mineralisation and high-grade vein systems, the company behind the project has confirmed.

Latin American Minerals (LAM) said the study by Dr D George Cargill of Cargill Consulting Geologists found that artisan mine workings demonstrated the presence of the zone, with gold mineralisation contained in soil and weathered rocks.

He also reported that the property's Main zone returned "very high gold values" for soil geochemistry. Exploration work around this area identified gold anomalies parallel to the Main zone, which suggest mineralised dykes, the report said.

An initial programme of 12 drilling holes determined that the dyke systems range in width from five metres to 40 metres and reach a depth of 100 metres.

Based on the report's findings, LAM has now initiated phase one of an exploration campaign, which will drill the remaining targets identified by Dr Cargill, as well as extending the definition of the dyke systems. The work is expected to cost $935,000 (£463,215).

A second phase of work, which will be further defined by the findings of phase one, will target the most promising areas of the Main zone and attempt to define new prospects.

Paso Yobai is located in south-east Paraguay, approximately 150 kilometres from the capital Asuncion.

 

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