“The deposit that we have been working on is in a zone called Las Bolas. It’s a structure that runs north-northeast and we were looking to expand it to the north. On the south end of that structure is a cross-cutting northwest structure called Soledad. That area has never seen any drill results. To date we have identified 400 metres of strike length. The Soledad structure is parallel to the El Rayo structure, which is where most of the historic mining took place. The mineralization we’re seeing at Soledad is higher grade than Bolas; Bolas is more large-disseminated, this is more ore shoots. At the end of the day we’re looking for ore shoots in the Soledad structure.
“The assays from the trenching are quite good. We’re seeing a fairly high grade material. We’ve completed 22 trenches on that structure and we’re seeing mineralized intervals of over 400 metres. So it’s very consistent with the La Catarina mine, which is basically the series of hills right behind Soledad. We’ve begun drilling based on the trenching results; we’ve got four holes planned on the structure. We’re hoping to be able to intercept the same sorts of values at depth in a drill hole.
“This year we’re going to continue to define and expand the resource at Las Bolas. We’re drilling to depth to try and hit a sulphide zone. We think we may have another ore shoot feeder to the south on that structure. The parallel structures—both the El Rayo and Soledad—are going to be drilled this year with a view to adding more resource through defining further tonnage and being able to find more of these ore shoots.
“We’re still in the exploration stage. For the project to move forward and a production decision to be made we really need to define more ounces. We haven’t started any sort of feasibility study. Right now, we’re trying to drill off the known mineralized zones. We are going to put out a revised resource by the end of June—which doesn’t incorporate these areas we’re drilling now, but will include the step-out holes that we drilled at Las Bolas. Really what we’re doing is looking at the extensions to the south and to the northwest of the Bolas structure to try and add more ounces.
“I think the project is pretty exciting. We’ve got a very robust silver price. Based on what we’re seeing in terms of strike length, we’re at least two kilometres along in terms of the known mineralized zones, and we’ve got another roughly four kilometres of untested zones that we’re doing work on now. And that’s only 30% of the total surface area on the project itself. So there’s lots of upside on the exploration side to be able to increase the resource.”
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