Blackthorn Resources hits high grade silver at Perkoa Zinc Project

Blackthorn Resources (ASX: BTR) has intersected high-grade silver mineralisation in all of the first three holes completed at the Perkoa JV Project in Burkina Faso, West Africa.

The 14 drill hole program aims to determine if Silver (Ag) and Lead (Pb) mineralisation is present in an area adjacent to high-grade Zinc (Zn) mineralisation.

It is also exploring for along strike extensions to mineralisation in an area that was previously sparsely drilled.

Highlights include:

- 27 metres at 185 grams per tonne (g/t) Ag, 1.5% lead (Pb) between 80 metres and 107 metres, including:
- 2 metres at 784.3g/t Ag, 5.9% Pb between 80.3 metres and 82.3 metres; and
- 9 metres at 333.1g/t Ag, 2.1% Pb between 98.3 metres and 107.3 metres.

The drilling program completed 14 cored holes totaling 2,387 metres, which includes two abandoned holes that were re-drilled because they did not attain their planned total depths.

Samples taken from ten other completed holes are being processed and assay results are expected during September 2011.

Scott Lowe, managing director, said “the initial set of assay results received to date have identified some very encouraging results which indicate there is high potential for this part of the mineral deposit to host economic concentrations of silver and lead.

"The company is eager to receive the assays from the remaining drill holes to incorporate into the work Glencore is doing to assess the viability of making Perkoa a Silver, Lead and Zinc operation along with other improvements.”

An investment proposal reviewing the potential to upgrade the Perkoa mineral processing circuit is expected from JV partner, Glencore International (LON: GLEN), in coming weeks.

The target drilling area is situated immediately along strike of the Perkoa deposit, currently being developed as a zinc mine and being managed and operated by JV partner Glencore (50.1%) and (39.9%).

Perkoa is a polymetallic volcanogenic massive sulphide deposit, which has a mineral resource containing predominantly high-grade zinc with minor silver and lead mineralisation.

The existing JORC probable ore reserve recognises the high-grade zinc potential only.

Importantly, the company has identified this area as having good potential to host silver and lead mineralisation within depths that could be amenable to open-cut mining.

On August 10 Investec Securities wrote a research report on Blackthorn Resources rating the stock as "speculative risk" at a price target of A$1.10 per share, more than double the current price.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18834/blackthorn-resources-hits-high-grade-silver-at-perkoa-zinc-project-18834.html