Quinchia gold project, Colombia
The Tesorito prospect on the Quinchia project in Colombia occurs 800 metres south-east of Metminco’s established 880,000 ounces Miraflores deposit and approximately 3km south-east of the company's 920,000 ounce Dosquebradas deposit.
It also located approximately 2km north of the large, undrilled Chuscal porphyry target.
Previous drilling highlights include 384 metres grading 1.1 grams per tonne gold from surface to end-of-hole.
Best result yet from Tesorito
Results from Tesorito have been getting better.
The latest hole intersected 64m of gold at a grade 1.67 g/t from a depth of 144m or sufficient to confirm a significant near surface porphyry gold target, said the junior.
Although early in its exploration history, Metminco believes the mineralisation at Tesorito represents the gold-rich cap of a deeper base-metal rich network.
The intensity of hydrothermal alteration seen at Tesorito together with prolific gold mineralisation already recognised in the Quinchia district and elsewhere in the Cauca belt suggests this to be a major mineralising system which offers great potential for exploration success.
Higher grade gold areas of over 1 gram per tonne occur within the broader mineralisation envelope of approximately 0.5 grams.
Chuscal gold porphyry target, Quinchia
Chuscal is the second significant gold porphyry target within the Quinchia gold portfolio.
It comprises a large, undrilled gold geochemical anomaly over an area with artisanal mining which has highly encouraging channel sample grades.
Discussions have been ongoing with AngloGold Ashanti to formalise a farm-in/joint venture agreement over the project.
Both Tesorito and Chuscal are located within two kilometres from the proposed mine site at Miraflores.
Miraflores gold project
In January 2018, Metminco submitted the Plan of Work (PTO) for Miraflores to the Colombian Mining Agency for mine development approval.
Colombian regulations require both the PTO and Environmental Impact Assessment approvals prior to commencement of operations.
Approval of the PTO is awaited.
The critical path for the development of the project remains the completion of the EIA, including the validation of the impacts on the local communities and the gaining of the social license for the project. Seasonal water monitoring has recently been completed.
At Mollacas, discussions with adjacent landowners concerning the sale of the company's water rights were suspended pending clarification of the owners' position.
A data-room has been prepared for the Mollacas project and discussions with interested parties are continuing.
New funding in place
During the quarter to end-June Metminco, raised A$6.2mln before costs in an entitlement offer and subsequent placement and share payments in lieu of fees owed.
Cash held at 30 June 2018 was A$1.7mln.
-- Updates for August 30 drill result --