Coyhaique Project
 |
|
 |
| Click image to enlarge |
Click here to download the report "Exploration Potential of the Coyhaique Project".
Click here to download the latest information memorandum
The Patagonia Project encompasses a large precious metals target with district-scale dimensions and excellent potential to identify economic Au-Ag resources. The project is located 15 kilometres to the east of Coyhaique in Region XI of southern Chile. Access and infrastructure are excellent. The property is owned 100% by Latin Gold Limited. It consists of 69 contiguous mineral concessions covering 19,690 hectares within an area 30 kilometres long by 4 to 12 kilometres wide.
Fifteen extensive zones of Au-Ag mineralization have been identified to date within the property. They comprise classic low-sulphidation epithermal vein, breccia and stockwork systems ranging in strike length from 500 metres to several kilometres.
In common with well-known examples of this style of deposit around the world, the mineralization at the Patagonia Project exhibits complex multi-stage vein and breccia paragenesis, colloform and crustiform banding of chalcedonic, saccharoidal and fine comb quartz, and adularia. Gold and silver occur as the native metals, electrum, and as silver sulphides and sulphosalts. Outcrops and core show ample textural and mineralogical evidence for both fluid boiling and for magmatic/meteoric fluid mixing as mechanisms for gold and silver deposition.
The deposits exhibit strong structural control and are hosted by a thick sequence of felsic pyroclastics within the setting comprising an inferred collapse caldera and rhyolite flow domes.
Summary
-
Gold - silver mineralization, with identified economic development potential, has been partly explored within the Coyhaique Project of Latin Gold Limited.
-
The Project comprises exploration rights over an area of 19,690 hectares in which Latin Gold Limited holds a 100% interest.
-
A strategic operating partner was sought to further develop the Project.
-
Patagonian Gold S.A was chosen as partner after extensive and keenly bid process in early 2003.
-
The Project concessions are located 15 kilometres east of Coyhaique in Region XI, southern Chile. Access and infrastructure are excellent.
-
The Patagonia region of Chile and Argentina is host to numerous gold - silver resources, with mineralization similar in style to that observed within the Project. These include Anglo Gold's Cerro Vanguardia Mine (13 Mt @ 8.88 g/t Au and 106 g/t Ag), and Silver Standard's Manantial Espejo (4.4 Mt @ 4.51 g/t Au and 264 g/t Ag) project. Meridian Gold's Esquel Project (15.6 Mt @ 7.16 g/t Au and 12.8 g/t Ag) is located 300 kilometres to the north of the Patagonia Project, and Coeur d'Alene's Fachinal (4.1 Mt @ 2.37 g/t Au and 110 g/t Ag) and Cerro Bayo (660,000 gold equivalent oz) mines are located about 100 kilometres to the south.
-
The Patagonia Project property has been subjected to reconnaissance geological mapping and sampling, limited trenching, and localised drilling. Airborne geophysical data is also available for the area.
-
The currently identified mineralized system within the property is of district scale with a strike dimension of approximately 30 kilometres and ranging between 4 and 12 kilometres in width.
-
Fifteen principal zones of gold - silver mineralization have been identified to-date. These zones have been traced over a cumulative strike extent exceeding 22 kilometres. The mineralization occurs in massive veins and stockwork zones.
-
The stockwork zones are characterized by native Au and electrum with very few associated sulphides. The grade is a function of veinlet density.
-
In the vein systems the Au and electrum occur associated with pyrite, base and precious metal sulphides. The grade is a function of the abundance of sulphides.
-
A recent review and report on the geology and mineralization has been completed for Latin Gold Limited by Natural Resource Consultants (International) Limited and Orogen Geoscience Ltda. This report can be found on the attached CD. The report highlights the potential of the property to host "bonanza-grade" gold - silver mineralization within the vein systems and lower grade mineralization of greater dimension within the stockwork zones. It recommends that a detailed, sustained and co-ordinated medium term exploration program be designed and implemented, leading to the completion of a bankable feasibility study if appropriate.
