EcuaGold Looks to Future Success
with Positive Sampling Results on Historic Producer
By Leia Michele Toovey
Historians, paleontologists, and geologists are fond of saying, “The past is the key to the present”. In the case of EcuaGold Resources’ (TSX.V: EGR) San Bartolomé mining concession, the proof of this axiom is quickly becoming evident.
The San Bartolomé concession is located in Ecuador, about 20 km southeast of Cuenca, Ecuador’s third largest city. Historically, it is Ecuador’s largest silver producer; between 1991 and 1994, mining interests extracted over one million ounces of silver.
Through grab sampling of tailings and waste dumps from past mining activity, EcuaGold has confirmed the remaining value of past production. Assays ranged from 1,159.5 g/t to 2,032.7 g/t Ag and 2.87 g/t to 5.15 g/t Au, averaging approximately $1087.56 per tonne.
EcuaGold is now poised to take advantage of continued resource extraction from this proven producer. Well-funded for exploration by a recent $6.9 million dollar IPO, a follow up of the assay results is in the works. Topographic surveying and detailed geological and structural mapping are just a few of the activities that will take place to guide future drilling efforts.
EcuaGold focuses its exploration efforts in Ecuador, in regions of proven production. Some of the benefits of operating in this mineral rich country are little known. Today, Ecuador has adapted mining laws that provide foreign investors with the ability to own a 100% interest on concessions over a 30-year, easily renewable period. Six years ago, the government eliminated royalties on mining, to further strengthen the country as a top location for junior exploration companies.
Investors seeking a grassroots deal with plenty of upside will find EcuaGold refreshing. Companies like this bridge the gap between gambling and putting our money into lesser risk ventures with potential for very high returns. Due diligence tells us EcuaGold has a high stake in a land area of proven mineralization, is well-funded, and works in a “mining friendly” region.
Presently, EcuaGold controls a 100-percent interest in 13 concessions in Ecuador, comprising nine distinct projects. In addition, the company has pending applications for 21 more concessions that are associated with three existing projects and two new projects.
Besides the San Bartolomé project, the other two notable projects are the Molleturo, a high-grade polymetallic vein system, and the Curiplaya, a gold-copper porphyry system. Both the Molleturo and Curiplaya Projects have positive NI 43 101 technical reports.
Molleturo has seen substantial exploration that potentially places it on par and certainly within shared geological structures as some other local producers. Historic work here identified two polymetallic veins – the Roman and Isabel Veins – which once again have shown excellent sample grades, including 1,235 g/t and 1,120 g/t silver and 2.78 g/t and 5.05 g/t gold.
Within 50 km is the Rio Blanco Gold-Silver deposit, with indicated reserves of 2,042,000 tonnes at 8.6 g. /t Au and 67.0 g/t Ag, valued at an estimated $250.79 per tonne, for a total reserve value of $512,113,180 at current market prices.
The Curiplaya project is located in southwestern Ecuador near the village of Bramaderos. Like EcuaGold’s other projects it is well-supported by infrastructure. A known porphyry deposit, however, sampling has returned relatively low resource values. In the NI 43 101 report, AC HOWE stated that it was their opinion that “the geology and hydrothermal alteration exposed at Curiplaya may represent the outer and/or upper levels of a porphyry copper-gold system, or possibly a more distal phase of a porphyry epithermal system.” As such, exploration at Curiplaya has the potential to find larger reserves at depth, or in proximity to where historic sampling has taken place.
On September 18, EcuaGold reported initial drilling results from the Curiplaya Project. These confirmed the theory of a large, porphyry-style alteration, and returned excellent grades all around. These included 34 meters grading 1.2 g/t Au and 16 meters grading 2.05 g/t Au. These grades were bolstered by numerous assays suggesting widely disseminated copper with consistent silver credits, too.
To date, 15 drill holes have been completed, and assays have been received for the first 11 drill holes of this 5,000 meter drill program. Drill holes 3-14 tested principally the cores of the Porotillos and Bramaderos intrusive. "The drilling has confirmed a large area of strong, porphyry-style alteration carrying widespread anomalous copper, gold and silver values," stated Anthony Ciali, President and CEO of EcuaGold.
Mr. Ciali is a mining executive with over 25 years of experience – to his credit he has raised more than $200 million to finance several mines in South America. He is living proof of the truism that a financing leader should be at the helm of every exploration company. On the other hand, he also holds a B.Sc. in mechanical engineering, so he talks the talk and walks the walk.
EcuaGold is a junior resource company looking in the right place at the right time, with a tight share structure and the right people on the job. If it’s true that the past is the key to the present, EcuaGold appears to have the acumen to unlock it.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
AI
