Sienna Gold Inc TSXV:SGP announced assays from the Callanquitas structure of its Igor project in the La Libertad region, Peru. Results include
1.33 g/t gold over 8.1 metres
(including 6.5 g/t gold over 1.5 metres)
2.16 g/t gold and 122.9 g/t silver over 7.3 metres
(including 4.22 g/t gold and 241.4 g/t silver over 3.5 metres)
2.28 g/t gold and 1,024.6 g/t silver over 55.5 metres
(including 5.58 g/t gold and 5,465 g/t silver over 1.2 metres)
50.7 g/t silver over 15.2 metres
56.2 g/t silver over 15.7 metres
1.87 g/t gold and 29.8 g/t silver over 13.5 metres
(including 3.41 g/t gold and 51.4 g/t silver over 6 metres)
1.7 g/t gold and 110.1 g/t silver over 74.5 metres
(including 4.67 g/t gold and 403 g/t silver over 17.6 metres)
President John Rucci tells ResourceClips.com, “We acquired Igor in 2005 along with 11 other projects. We dropped all of them but Igor. We’ve expanded Igor since then, adding another 300 hectares immediately adjacent to it on the southeast corner. It has been mined all the way from the Incas through the Spaniards to today. So it’s a very rich mountain. We have three targets that we’re chasing; we’ve identified two, which have a 43-101 resource of approximately 200,000 gold-equivalent ounces in the inferred category. Now our major discovery, Callanquitas, is to the northwest and looks very rich. It extends probably over a one-kilometre length, is open at depth and at strike, and is open to the north and south. We feel we have a major discovery here, with bonanza-type grades of silver, and even the gold values are very high as well.
These are huge grades. The company is targetting a million ounces of resource after this drilling program, and I think we’re going to achieve it—John Rucci
“In 2010 and 2011, we started out with a five-hole drill program. We found some very interesting stuff, and we were able to add another three holes to that which returned big grades again. That gave us the information which started the drilling program this year. We’re drilling infill holes and some step-out holes. So we’re going to close it in, get it down to a 50-metre grid, if we can, for better resource definition. We’ve got another 5,000 metres to drill on Callanquitas, and we’ve got another 3,000 metres to drill up in the Domo and Tesoros areas.
“These are huge grades,” Rucci exclaims. “These are phenomenal values. The company is targeting a million ounces of resource after this drilling program, and I think we’re going to achieve it. We are planning to have a 43-101-compliant resource—albeit in the inferred category—by the end of this year.”
He continues, “We had started a prefeasibility-type study for the small mine at Domo and Tesoros, and part of the drilling there was to close in the ounces that we have in the resource in that area. So that’s moving forward, but now in light of what’s coming out of Callanquitas, the design would have to be much different than what we’d planned. If in fact it provides what we need, we’ll start investigating opportunities to put the whole thing in production—Callanquitas, Domo and Tesoros.”
Rucci notes that the company was aiming to bring the Domo and Tesoros areas into production by late 2013, early 2014. However, if Sienna decides to include Callanquitas, “You’re talking a much bigger development.”
“The infrastructure is excellent in Peru,” he reports. “We have a lot of local workers up there, and equipment is readily available. Our manager of exploration is an expat, but the remainder are all Peruvians—Senior Geologist, field geologists. A good professional staff. We’ve got roads; we’ve got power; we’ve got water.”
Regarding funding, Rucci says, “At the present time we have about $3 million to $3.5 million in the treasury. That will take us through this drilling program. We are looking at raising funds possibly in September. However, if this news continues, and the stock rises to about $0.60, we do have warrants that will bring in about $11 million to the treasury.
“I’m very happy with the project,” he concludes. “We’ve had about five different drill programs on it. We have a resource on the property, and if we found nothing else we’d still generate about $1 million net a month for the company with these prices. Now we have this huge find and the question is, how big is it? I think it could be very large. So I’m very excited, and I think the future’s very bright for Sienna.”
by Ted Niles