“Enchi was previously owned by Red Back Mining which is now Kinross. The Chirano Mine is just up the road from Enchi. The Chirano Mine started off as a several million ounce, 1 g/t ore body, and has now become five million ounces and at a much higher grade. So basically Red Back made itself on Chirano by sheer persistence, just poking away at a very long and prolific structure. And once they started to get a little bit deeper on the structure they started to hit the sweet spot.
“On the Enchi project—which we have in joint venture with Kinross—we have the same thing. It’s the same geology, the same structure, the same geochemical make-up if you will, albeit without a headframe or an open pit or a mill, and it’s the largest such concession on that trend that doesn’t have a mining operation.
“These assays are certainly as good if not better than assays previously released by Red Back in their drilling on these zones. What we’re doing in this drilling is filling in the gaps where Red Back hadn’t drilled previously, in an effort to put together the very first resource estimate on the project. We’re still targetting the third quarter 2011 for that.
“In 2011 we’ll continue drilling. We’ve got 35,000 metres of drilling outlined. We’re at two drill rigs, hoping to go to four in the next few months. So there’ll be a lot of news coming out and a lot of zones. One zone in particular that we’re getting into now, called Sewum, has had a lot of trenching done in the past but very little drilling, and it’s looking pretty good. So we’ll continue to hit the known targets that have been drilled previously, in an effort to put together a resource. And we’ll be drilling zones that have been trenched but that have not been previously drilled.
“We’ve got a lot of drilling to do out there and have no intention, as of yet, to put anything into production on our own. We’re trying to see how big we can make these deposits before we make any kind of decision like that.
“It’s a great project. It’s elephant territory out there. It’s a huge concession; the surface signatures of the gold are immense, 10 kilometres long, so there are a multitude of targets to test. Our average drill depth is 50 metres, so we’re just scratching the surface on a lot of these things now.
“We haven’t come out with a press release in a while out of Spain. We’re still plugging away on the Corcoesto deposit there. We took it from 300,000 ounces to over a million ounces last year and we’re pretty confident that the drilling we’ve done recently over the last 4 or 5 months has added significantly to that resource. We are targetting a resource estimate on Corcoesto in a couple of months, so look for some good news out of there as well.”
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