Promontorio´s Central Breccia and NE zones - hi grade holesCurrently, Promontorio has 92 million silver equilavent ounces in M&I and 26 in Inferred (118 million Ag Eq ounces in total). I think the silver price used for the resource was around US$30, as this was done in 2012. As such, a revision will likely need to be done in the future (unless the silver price goes back to over $30 and remains there longer term), which will likely result in a few ounces lower but with higher average grades.
That resource was based on 61,000 metres of drilling, which represents a drill cutoff date of August 21, 2012. Since then Kootenay drilled an additional 30,000 metres, of mainly high grade targets, which have not been profiled in the 43-101 resource as yet (to this day). Kootenay had switched focus entirely on La Negra discovery and put the Promontorio deposit to the side. Kootenay did produce an updated resource on May 14, 2013, but that was just to update the resource with gold (which wasn`t included originally). They didn`t incorporate any of the newly drilled holes. ``....incorporating the gold content contained into the mineral resources of its flagship Promontorio Silver Project, due to new metallurgical data and information which supports recovery of gold. This updated resource estimate does not incorporate any drilling completed since the resource estimate announced August 21, 2012.`` The Promotorio resource is comprised of 2 nearby pits. Many of the new 30,000 metres of drilling was done at the new Central Breccia (located between the 2 pits) and also nearby below the Northeast Zone (Pit). The results were very good. It identified high grade pockets of mineralization in these particular areas. More drilling work is required to better understand the extent of the high grade impact.
At some point down the road, I would like to see PAS incorporate these high grade drill results and then perform a study on the Central Breccia and Northeast zones. Once the high grade structures have been isolated (within the zones), I would like to see PAS perform a drill program to try to extend these high grade areas.
Perhaps a similar study and drill plan Kootenay is working on for Q1 2017 for the existing San Gregorio and Las Carolinas resource zones at La Cigarra - isolate the high grade subzones and follow them around with the drill rig (including at depth).
I think this exercise could eventually prove that the Promontorio Central Breccia and Northeast zones could be worthy of being satellite production deposits for the La Negra mining plan. The 3rd Promontorio pit (The Pit Zone) could just be put on hold until the silver price is much higher.
From the Feb. 5/14 NR: ´´Numerous holes drilled within both the Central Breccia and Northeast Zones demonstrated high grades of mineralization and indicate potential to add significant tonnage to the established mineral resource.´´ ´´Mineralization in the Central Breccia and Northeast Zones area appears to be stratabound within Maar type diatreme facies as opposed to the vent diatreme facies of the Pit Zone. Potential exists to host a significant tonnage of higher grades within the Central Breccia and Northeast Zone area as higher-grade intercepts are scattered along its length.´´
Here are some of the drill results (yet to be added into the Promontorio 43-101 resource):
DH 186
- 301 gpt Silver Eqv. Over 31.7 Meters (200 gpt Ag, 1.21 gpt Au and 1.79% Pb+Zn);
- Including 1,046 gpt Silver Eqv. Over 5.0 Meters
(808 gpt Ag, 1.83 gpt Au and 6.88% Pb+Zn) - Including 300 gpt Silver Eqv. Over 7 Meters
(233 gpt Ag, 0.62 gpt Au and 1.6% Pb+Zn)
DH 185
- 274 gpt Silver Eqv. Over 18.4 Meters (208 gpt Ag, 0.92 gpt Au and 0.79% Pb+Zn);
- Including 1,106 gpt Silver Eqv. Over 3.0 Meters
(1,023 gpt Ag, 0.92 gpt Au and 1.66% Pb+Zn)
DH 188
- 124 gpt Silver Eqv. Over 20.3 meters (59 gpt Ag, 0.84 gpt Au and 1.0% Pb+Zn)
DH 183
- 188 gpt Silver Eqv. Over 6 meters (111 gpt Ag, 0.49 gpt Au and 2.48% Pb+Zn)
- 161 gpt Silver Eqv. Over 7.1 meters (98 gpt Ag, 0.61 gpt Au and 1.5% Pb+Zn)
- DH 191 Returned: 183 gpt Silver Eqv. Over 25.0 Meters
- Including 305 gpt Silver Eqv. Over 5.0 Meters
- Including 325 gpt Silver Eqv. Over 3.0 Meters
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- DH 190 Returned: 101 gpt Silver Eqv. Over 38.0 Meters
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- DH 192 Returned: 147 gpt Silver Eqv. Over 2.0 Meters
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- DH 192 Returned: 42 gpt Silver Eqv. Over 35.0 Meters
> DH 193 Returned: 218 gpt Silver Eqv. Over 45.0 Meters (107 gpt Ag, 0.99 Au, 2.83% Pb+Zn)
- Including 415 gpt Silver Eqv. Over 22.0 Meters (209 gpt Ag, 1.78 Au, 5.42% Pb+Zn)
> DH 189 Returned: 152 gpt Silver Eqv. Over 49.0 Meters (63 gpt Ag, 0.88 Au, 2.06% Pb+Zn)
- Including 333 gpt Silver Eqv. Over 12.0 Meters (122 gpt Ag, 2.48 Au, 3.81% Pb+Zn)
Includes: 396 gpt Silver Eqv. Over 5.0 Meters (79 gpt Ag, 5.0 gpt Au, 2.47% Pb+Zn)
Includes: 227 gpt Silver Eqv. Over 5.0 Meters (147 gpt Ag, 1.26 Au, 0.64% Pb+Zn)
Includes: 222 gpt Silver Eqv. Over 8.0 Meters (71 gpt Ag, 1.88 gpt Au, 2.47 % Pb+Zn)
As noted, those holes listed above are not currently in the Promontorio 43-101 resource. However, there are some older (2011) high grade holes that are in the official resource for Northeast Zone, including as follows:
* DH PC-028-11
228.9 g/t Ag Equivalent over 51m
* DH-066-11
279.5 g/t Ag Eq over 39m
* DH-070-11
193.0 g/t Ag Eq over 54m
and
192.5 g/t Ag Eq over 47m
* DH-088-11
620.3 g/t Ag Eq over 16m
* DH-110-11
260.4 g/t Ag Eq over 71m
* DH-116-12
87 g/t Ag Eq over 89m
Again, these high grade holes
ARE already in the resource, under Northeast Zone. The previous high grade holes (posted on this post) are
NOT in the resource as yet - drilled at Central Breccia and Northeast Zone.
As mentioned, I think the Central Breccia and Northeast zones at Promontorio needs significant studies and drilling before a they can be incorporated into a mine plan.
However, I don´t think this possibility has been reflected (even partially) into Kootenay`s share price as yet. Agin, plenty of work is required to get to that stage. However, with studies and additional drilling of the high grade extensions, I believe it could become a realistic outcome and a major resource boost to the La Negra mining plan.