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Monday, 14 January 2013
Patriot Minefinders rallies as it prepares for updated resource and PEA at KM 66 project
Shares in Patriot Minefinders (OTCBB:PROF) jumped Wednesday after the company last week said it plans to release an updated resource estimate and carry out a preliminary economic assessment for its KM 66 project in Mexico this year.
Its stock was lately higher by more than 18%, to 22.5 cents this afternoon.
Under the terms of a letter of intent with Bearing Resources (CVE:BRZ) announced at the end of November, Patriot has the option to earn up to 75 per cent interest in the KM 66 property.
The Vancouver-based company said its focus this year will include advanced-stage work aimed at expanding the KM 66 project, which now contains a 2008 NI 43-101 indicated resource of 6.58 million tonnes grading 28 grams per tonne (g/t) silver, 0.09 g/t gold, 0.41 per cent lead and 1.14 per cent zinc, for 22.3 million silver equivalent ounces.
This resource also includes a further 2.03 million tonnes grading 34 g/t silver, 0.13 g/t gold, 0.54 per cent lead and 0.81 per cent zinc, for just over 6.3 million silver equivalent ounces in the inferred category, using a cut-off grade of 50 g/t silver equivalent in the La Gloria and Las Palmitas silver-gold-lead-zinc deposits.
KM 66 covers a five kilometre-long trend of mineralization, which the company said “exhibits similarities” to Goldcorp's (TSE:G) Penasquito and Camino Rojo deposits.
The focus will be on expanding the La Gloria deposit area at the project.
Patriot said the breccia zone that hosts the deposit has not been defined, and that the precious and base metal mineralization identified so far on KM 66 “is indicative of a larger mineral system under shallow cover”.
In the year ahead, the company said it plans to conduct ground geophysical survey along the mineralized trend and diamond core drilling, which will include holes to confirm extensions of the La Gloria deposit in the immediate areas.
Patriot also plans to conduct a ground geophysical survey on the recently discovered Victorinos target, five kilometers east of La Gloria, where Bearing has defined a 500 by 600 metre gold-silver-lead-zinc soil anomaly.
The company expects to test some of the targets defined by geophysics and soil geochemistry in 2013.