Estrella Gold Corp TSXV:EST announced results from its Colpayoc Gold Project in northern Peru. Highlights include 0.55 g/t gold over 140 metres, 0.72 g/t over 69.7 metres (including 1.03 g/t over 28 metres) and 0.58 g/t over 61.1 metres (including 1.02 g/t over 10.9 metres).
President/CEO Keith Laskowski tells ResourceClips.com, “We’ve had this project for several years, but this is the first serious round of drilling that we’re completing now. It’s a gold deposit located southwest of the large Yanacocha Gold District in northern Peru. Historically, the gold was discovered by Newcrest Mining in 1995 but the gold prices then were a bit low, so it didn’t really advance, but now with much higher gold prices the system is certainly very exciting to drill. Colpayoc has 67 square kilometres of mineral rights that we control; it’s a very nice area to be working on. There are three areas of mineralization. Today’s results are from the Daylight Zone, a gold-porphyry system, an outcropping gold system right at surface. So it’s pretty easy drilling right now.
We’re looking for multimillion-ounce systems. Once we’ve established that, we want to venture the properties to a mining company and then go back and find additional prospects.
“These are the first two holes of eight holes in the Daylight Zone. The remaining holes are being analyzed at the lab right now, so we hope to have additional results later this month. Last year, we completed an initial 43-101-compliant gold resource with only four historic holes. That came out with a very small resource of about 144,000 ounces [inferred], but the reason it was so small was because SRK Consulting was not comfortable extending the mineralization between the drill holes. Right now we’re drilling between these holes, which is not very risky at all. We anticipated that we would be drilling wide zones of uniform mineralization, and in fact that’s what we’re starting to see,” Laskowski says.
“I am encouraged by looking at the additional holes; it appears that the zone is getting stronger to the south. Additional holes will be released in that direction in the next few weeks.
“We’ll get our results back in early September, and we anticipate preparing an updated resource in late September or early October,” he adds.
“We’ll then take a look at the size of the resource. Most of this resource will be oxide and should have fairly robust potential economics. We’ll make a decision once we see the resource numbers, but we’re really looking for a mining company to partner here.”
“We’re a prospect generator,” Laskowski points out. “Our role is to find properties, make discoveries and prove up enough data to demonstrate potentially large systems. We’re looking for multimillion-ounce systems. Once we’ve established that, we want to venture the properties to a mining company and then go back and find additional prospects. We’re in discussion with several groups right now.”
Asked about Peru’s new government, Laskowski says, “At this point there’s no substantial change in mining policy. The present government has moderated its position over the last four months or so. The appointment of various ministers has reinforced that, so we don’t see anything negative at this time. We do see that there’s a new ministry of the environment being created, and the government is moving towards integrating both community relations and environmental issues into the initial claim-acquisition procedure, but it’s nothing that affects the actual mining procedure.”
Laskowski continues, “In the Colpayoc area the infrastructure is excellent. We can see the operations of the Yanacocha Mine from our property. Certainly that mine has a great deal of infrastructure, but it’s about 12 kilometres away. On our property we have access by gravel roads and there’s a high-tension power line that runs directly across the property which is going up to feed another new mine, Tantahuatay. We have very, very simple infrastructure issues.
“Estrella is a fairly small company in terms of market cap, but we have a very large portfolio of properties right now,” he explains. “We have 15 properties that we acquired as part of a strategic alliance with Cliffs Natural Resources. They’re funding us to explore these properties. And we have six other properties that we hold independently. They’re in various stages of exploration, and we’re seeking partners on those properties as well. We have two joint ventures in place. In addition to the strategic alliance with Cliffs, we partner with them on the Pampa Poroma Project in southern Peru. The other joint venture is on the Pucarana Gold Property in the Orcopampa Mining District; that’s with a company called Esperanza.”
Laskowski concludes, “So we’ve got a pretty large portfolio and a pretty small share structure—we hope to increase the value of that share price through optimization of these properties.”
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by Greg Klein