Estrella Gold Corp TSXV:EST announced results from its Colpayoc Gold Project in northern Peru. Assays include
0.52 g/t gold over 110.5 metres (including 1.27 g/t over 10.1 metres)
0.57 g/t over 53 metres (including 0.34 g/t over 13 metres)
0.4 g/t over 43.7 metres (including 0.98 g/t over 5 metres)
0.65 g/t over 22.5 metres
0.62 g/t over 25.5 metres (including 0.99 g/t over 8.1 metres)
President/CEO/Director Keith Laskowski tells ResourceClips.com, “These results are very similar to what we predicted. We’ve got an outcropping gold deposit, and we’re collecting systematic drill holes through it so we can qualify those results for a 43-101-compliant resource. We anticipate that this resource will substantially increase the existing compliant resource. We’re not in a position to drill off the entire deposit—our drill holes are quite shallow, generally down to about 130 to 150 metres. We’ll probably get around 400,000 ounces near surface, but these types of systems are entirely capable of producing multimillion-ounce deposits, if you drill deeper. We’re going to be looking for a partner to do that.”
We’re not in a position to drill off the entire deposit. We’re going to be looking for a partner to do that—Keith Laskowski
Referring to the search for a Colpayoc JV partner, Laskowski said, “That’s our business model. Our investors are funding us as prospect generators, so we develop properties to a point where we can achieve optimum value for them. We’re actually a micro-cap company with a mid-sized company’s portfolio. Our recent financing gives us a bit of breathing room, so now we can try to optimize the value on some of these other properties instead of focusing on one property.”
As a “prospect generator,” Laskowski doesn’t see Estrella taking the project into production. “We’re geologists and accountants. We focus on what we know best,” he says.
Last June the Peruvian government cancelled Bear Creek Mining Corp’s rights to its Santa Ana mineral concessions. The following month a new president with an interventionist reputation took office.
“There’s a lot of concern about Peru,” Laskowski concedes. “But the challenges that Bear Creek faced are unique to the property and not reflective of the country. There’s a certain set of circumstances that unfortunately culminated just ahead of the election.
“There were concerns involving the new president and his perceived reputation, but those issues greatly diminished during the two months prior to the election. The new president, Ollanta Humala, softened his stance considerably, moved to the middle, and that’s the reason he was elected. What we’re seeing now is that he’s actually staying true to his words and following through with progressive mining reforms that are going to impact the industry in a minimum manner but hopefully satisfy some of the needs of the people in the poorer sections of the country. In the long term it’s good for everybody. Right now, though, the markets are a little concerned. I think it’s good, but it’s a tough task to communicate to investors how those details fit together.
“I’ve looked at a lot of countries,” he adds. “At the end of the day, I don’t know a better country in Latin America. Colombia’s very favourable, but the mining law in Peru is much better. Brazil’s a little more difficult, Ecuador’s off limits. That’s my opinion.
“About 56% of their export income comes from mine production. So they’re pretty well hooked on mining. In our business we’re prospect generators, and their mines are going to deplete their resources, so they need to replace them. The only way you can have 56% of your export income from mine production is to have a good mining country with well-trained people. Most important, it’s got incredible mineral endowment.
“The infrastructure is perfect,” he says. “If I took you out there at the right time of the day you’d be shaking in your boots by the blasts from Newmont’s adjacent mine at Yanacocha. I think it produced about 1.3 million ounces last year. We have roads to the property; a power line crosses the property; we’re on the border of Newmont’s property. The infrastructure’s incredible.”
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Estrella Gold Corp
by Greg Klein