Latin American Minerals (CVE:LAT)(OTCQX:LATNF) unveiled Tuesday results from the first five diamond drill holes on the Tacurú target at the company's Paso Yobai project in Paraguay.
The Tacurú target is the first gold soil anomaly drilled on the 14.8 kilometre-long New Gold Trend at the company's 100 percent-owned exploration concession at Paso Yobai.
The target area is located 3.5 kilometres northeast of the company's
newly inaugurated Mina Independencia gold pilot plant, where it is bulk
sampling on the Discovery Trend.
Among the highlights, hole DDH-LAT-BT-02 intersected 25.50 metres of
4.09 grams per tonne (g/t) of gold, while DDH-LAT-BT-03 hit 5.95 metres
of 1.01 g/t gold.
Other notable results included 17.1 metres of 3.20 g/t gold in hole
DDH-LAT-BT-04 and 14.02 metres of 2.41 g/t gold in hole DDH-LAT-BT-05.
"These first results from Tacurú confirm that there is notable gold
mineralization on the New Trend and this gold is found in sandstone host
units, a new mineralization style for the project," said president and
CEO, Miles Rideout.
"These are breakthrough results for the company and we will continue
to aggressively drill further targets. Our goal for 2012 is to
demonstrate the scope and dimensions of this major new discovery
The Tacurú Target was first detected in the reconnaissance sampling
program that delineated the 14.8 kilometre long New Trend gold
After claiming the mineral rights and contracting the surface rights
with the local resident, the company developed information on the target
through detailed soil sampling grids, auger-hole sampling, and
trenching, it said.
In December, Latin American released the trench results at the target, which showed 3.8 g/t averaged over 30.55 metres.
The drill permit for the project was received late last year, with an
initial program of six holes for 851 metres of diamond drilling
completed in January.
Assay results for the first five holes were reported Tuesday, with results still pending for DDH-LAT-BT-06.
Separately, the company also said Tuesday that in January, processing
operations began at the Mina Independencia Gold project, also located
near the town of Paso Yobai.
These operations were halted, however, on January 31 by a
demonstration lead by informal gold miners who were concerned about
title security of their farms and homesteads under Paraguayan law. The
company has since met with leaders of this informal mining movement, it
said, where both parties agreed that a "mutually supportive alliance,
overseen by Paraguay's Vice Ministry of Mines and Energy (VMME) is the
most productive way forward for the Paso Yobai gold district".
Latin American added that these operations now continue without interruption.
investment in the construction of the Mina Independencia mine and
processing facility has allowed the company to complete the acquisition
of 99% ownership of the permitted Minera Guairá mining concession though
dilution of the partner's interest.
Latin American's partners at Minera Guairá retain a 1% net smelter
royalty for this concession, in addition to proceeds from surface
Regarding these project advances, Rideout commented: "The pilot plant
operation allows us to expose and bulk sample mineralized shoots on the
Discovery Trend. This work will confirm the head grades for a
subsequent mine expansion program."
"Our neighbours to the south have a strong production track record,
with historic production likely exceeding 100,000 oz. of gold. We are
pleased that these residents are willing to work with the Vice-Ministry
to formalize and advance their work area."
The company is developing the Discovery Trend Pilot Plant operation
on the Minera Guairá mining concession, part of its larger Paso Yobai
gold project. The aim of the plant is to facilitate resource evaluation
through bulk-sampling on the Discovery Trend, which is characterized by
coarse gold mineralization extending from surface to greater than 100
The second New Trend at Paso Yobai is approximately 14.8 kilometres
in length, located 3.5 kilometres northeast of the Discovery Trend. The
company owns 100 percent of the prospecting concessions that contain
this geologic feature.
Results from 2011 work to define drill targets suggest that bulk
tonnage potential could exist at several target zones along this
extensive structure, the company said.
In addition to the Paso Yobai project, the company's Itapoty diamond
project and Chiriguelo rare earths-niobium property are also located in