Infill drilling advances gold-silver projects for Seafield and Eco Oro in Colombia
by Greg Klein
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Infill drilling has brought Seafield Resources TSXV:SFF closer to an updated resource and eventual feasibility for its Miraflores deposit in Risaralda department, Colombia. Highlights from five holes released February 6 include:
- 0.69 grams per tonne gold and 1.68 g/t silver over 60 metres
- (including 1.03 g/t gold and 2.63 g/t silver over 13 metres)
- 0.47 g/t gold and 1.5 g/t silver over 120.3 metres
- (including 0.89 g/t gold and 1.83 g/t silver over 26.8 metres)
- 0.35 g/t gold and 0.96 g/t silver over 51.9 metres
- 0.45 g/t gold and 1.63 g/t silver over 37.15 metres
- 0.52 g/t gold and 0.91 g/t silver over 48.4 metres
- 0.5 g/t gold and 2.16 g/t silver over 60.6 metres
- 0.46 g/t gold and 1.41 g/t silver over 11 metres
- 1.29 g/t gold and 1.69 g/t silver over 57.3 metres
- (including 2.63 g/t gold and 2.61 g/t silver over 15.5 metres).
True widths weren’t provided. The top-most intercepts began near surface while the deepest stopped at a down-hole depth of 240 metres. The company released only continual intervals of mineralization above 6 metres with a cutoff of 0.2 g/t gold.
“The deposit’s mineralization is characterized by a hydrothermal breccia pipe with free gold associated with cement materials (the matrix) and high-grade structures where gold is associated with zinc, lead, copper and iron,” the company stated. These results “confirm the continuity of high-grade mineralization in structures and lower-grade mineralization in the breccia pipe cement and matrix.”
So far the campaign has drilled nearly 2,000 metres of a planned 6,800-metre infill program. Updates for both the resource estimate and PEA are scheduled for Q2. A feasibility study and environmental and social impact assessment are slated for Q4. The company hopes to begin production in 2015.
Miraflores’ December 2011 resource shows measured and indicated categories totalling 1.9 million gold ounces and an inferred estimate of 103,043 ounces.
Last April’s PEA used an 8% discount rate to estimate a pre-tax net present value of $249 million and a 50% internal rate of return. With an initial capex of $93.7 million for the combined open pit and underground operation, payback was projected in just 1.8 years.
The Miraflores deposit forms part of Seafield‘s 6,757-hectare Quinchia gold project in west-central Colombia, 100 kilometres south of Medellin. The company completed its 100% earn-in last November.
Seafield stock opened February 6 at $0.11, half a cent above its previous close, then finished the day back at $0.105.
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