Update at Pico Machay
November 19 2007 - 1:02AM
UK Regulatory
RNS Number:9470H
Monterrico Metals PLC
19 November 2007
Monterrico Metals plc
("Monterrico" or the "Company")
AIM: MNA
Final set of results from the current drilling programme
Pico Machay Gold Project in southern Peru
LONDON, 19 November, 2007 Monterrico Metals plc is pleased to announce the final
set of results from a drilling programme being undertaken by Absolut Resources
Inc. (ABS - TSX Venture) at Monterrico's concessions covering the Pico Machay
Gold Project in Peru. The results of the first two previous sets of results
(for drill holes: ABS-191 to ABS-210 and ABS-211 to ABS-230) were announced on
26 September and 23 October 2007, respectively. The Company is presently
conducting a review of Absolut's investment program in the Project, with the
objective of formalising its association with Absolut Resources.
The following is the text of the announcement by Absolut Resources Inc.:
Drill Out Completed at Pico Machay
plus Positive Metallurgy Testwork
Toronto, November 19, 2007 - Absolut Resources Corp. (TSX-V: ABS) is pleased to
report the final results from the definition drilling program on the Pico Machay
Gold Project in Peru. It also reports that preliminary metallurgical testwork on
Pico Machay samples has indicated that cyanide leaching would yield good
recoveries of gold and silver.
The drilling confirms the continuity of near surface mineralisation which,
supported with favourable preliminary metallurgical results, demonstrates the
feasibility of a low capital cost, heap leach operation at Pico Machay.
Highlights of the drilling were holes ABS-242 intersecting 100m @ 0.83 g/t Au,
including 7.5m @ 2.13 g/t Au and 27m @ 1.26 g/t Au; ABS-234 intersecting 80.5m @
0.71 g/t Au, including 16.5m @ 1.46 g/t Au. All results are tabulated below:
Pico Machay - Drill Hole Gold Grade Summary
Hole From (m) To (m) Length (m) Gold
grade (g/t)
ABS-231 8.5 35.5 27.0 0.33
58.0 100.0 42.0 0.34
ABS-232 0.0 88.0 88.0 0.70
including 53.5 71.5 18.0 1.75
ABS-233 0.0 80.5 80.5 0.43
including 20.5 26.5 6.0 1.12
ABS-234 0.0 80.5 80.5 0.71
including 1.0 17.5 16.5 1.46
including 67.0 71.5 4.5 1.05
Pico Machay - Drill Hole Gold Grade Summary continued
Hole From (m) To (m) Length (m) Gold
grade (g/t)
ABS-235 13.0 31.0 18.0 0.44
41.5 52.0 10.5 0.32
58.0 82.0 24.0 0.39
ABS-236 0.0 100.0 100.0 0.44
ABS-237 0.0 47.5 47.5 0.42
55.0 67.0 12.0 0.33
79.0 89.5 10.5 0.50
ABS-238 0.0 37.0 37.0 0.36
61.0 80.5 19.5 0.50
ABS-239 0.0 23.5 23.5 0.62
including 8.5 16.0 7.5 1.57
28.0 38.5 10.5 0.35
ABS-240 4.0 25.0 21.0 0.61
ABS-241 0.0 41.5 41.5 0.90
including 0.0 4.0 4.0 1.47
including 22.0 31.0 9.0 1.50
ABS-242 0.0 100.0 100.0 0.83
including 17.5 25.0 7.5 2.13
including 41.5 68.5 27.0 1.26
ABS-243 No significant
ABS-244 0.0 56.5 56.5 0.56
including 22.0 40.0 18.0 1.04
65.5 100.0 34.5 0.40
ABS-245 0.0 70.0 70.0 0.68
including 32.5 56.5 24.0 1.18
ABS-246 No significant
*Intersections are calculated using a 0.3 g/t Au cut-off and up to 1.5m of
internal dilution
A series of metallurgical tests are ongoing in order to determine the maximum
mineral recovery and optimum operational parameters, these include:
- Solubility Tests: To determine if gold responds to leaching with
sodium cyanide solution.
- Bottle Roll Tests: To determine the maximum possible extraction of
gold under conditions similar to operating conditions.
- Column Leach Tests: To determine the possible recoveries from a heap
leach scenario. This type of tests aims to simulate the operating conditions,
such as the size of the particle, PH, cyanide concentration, float flow, etc.
Highlights of the Column leach tests, which were designed to determine the
possible recoveries from a heap leach operation, returned recoveries of greater
than 87% on samples from the silicified and advanced argillic zones, whilst a
blended sample of silicified and argillic altered rock returned recoveries of
74%. The test work was carried out with solution of 50 ppm cyanide
concentration. Further tests with greater cyanide concentrations will be carried
out to determine the optimal cyanide concentration for maximum gold recovery.
The results of the three types of tests completed to date were as follows:
Table 1: SOLUBILITY TESTS
MINERAL SOLUBILITY
Alteration Type SOLUBILITY (%)
Au Ag
Silicio L1 89.23 93.89
Advanced Argilic L2 91.46 83.77
Argilic L3 96.17 74.62
Blended Silicic & Argillic L1+L3 87.82 67.53
From the three alteration types, the argillic alteration produced the best
average gold solubility with solubility results of 96%, whilst solubilities for
the other alteration types averaged approximately 90%. As an operational
scenario, a 1:1 blend of the two most extensive alteration types within the
deposit was tested and returned a solubility of about 88%. In general,
solubility above 80% indicates that the gold present in the mineral will be
easily extracted by a cyanide solution. Silver follows a trend similar to that
of the gold.
Table 2: BOTTLE ROLL TESTS
BOTTLE ROLE TESTS
Alteration 50 ppm (CN) 500 ppm (CN)
RECOVERY RECOVERY
(%) (%)
Au Ag Au Ag
Silicic L1 82.76 43.01 90.54 52.86
Advanced Argilic L2 87.8 22.28 89.76 44.44
Argilic L3 90.77 45.51 91.34 54.25
Blended Silicio & Argillic L1+L3 80.43 26.25 86.27 39.93
All the results obtained show that the gold recovery is above 80%, confirming
that the gold present in the mineral will be easily extracted by the leaching
process with sodium cyanide.
Table 3 COLUMN LEACH TESTS
COLUMN LEACH TESTS
Alteration 50 ppm (CN)
RECOVERY (%)
Au Ag
Silicio L1 87.17 32.28
Advanced Argillic L2 87.41 15.73
Argillic L3 64.43 19.89
Blended Silicic & Argillic L1+L3 74.13 18.54
With these first series of column leach tests, the expected recoveries are
getting closer to that to be expected at a run of mine heap leach operation.
The initial tests have been performed with a solution of 50 ppm cyanide
concentration. Tests using higher concentrations of cyanide will be performed to
determine the optimum cyanide concentration to achieve maximum recovery.
Pico Machay is characteristic of a high-sulphidation, epithermal gold system.
The geological model has been repeatedly tested and additional drilling
continues to delineate and expand the resource base.
The Company previously announced an independent preliminary Mineral Resource
Estimate indicating an inferred in situ resource of 580,000 ounces of gold (24.8
million tonnes grading 0.73 g/t Au) at Pico Machay Gold Project (see news
release Sept.26, 2005). The Mineral Resource Estimate was prepared by Caracle
Creek International Consulting Inc. (CCIC), of Sudbury, Canada. The Mineral
Resource was calculated using a 0.3 g/t gold cut-off and comprises 436,623
ounces gold in the Oxide and Mixed Zones (15.9 million tonnes grading 0.85 g/t
Au) and 145,579 ounces gold in the Sulphide Zone (8.9 million tonnes grading
0.51 g/t Au). The Resource calculated for the Oxide and Mixed Zones lies above
an average depth of 75 metres.
Absolut has implemented a quality control program to ensure best practice in
chemical sampling and analysis of surface and reverse circulation drilling
samples.
All drilling has been performed using a Reverse Circulation Drill Rig. Samples
are split on site under the supervision of Absolut Resources geologists.
Sampling is done on one and a half meter intervals and samples are transported
by Company staff to Santa Ana, Peru for direct shipping to Acme Laboratories in
Lima, Peru. Acme Analytical Laboratories is an ISO 9001:2000-registered
laboratory. Gold values are obtained by a 50 gram fire assay.
The metallurgical samples were taken from road cuts and drilling platforms, with
an average linear extension of 50m, for an approximate weight of 2 tons (2,000
Kilos), from each sampling area. The samples were placed in polyethylene water
proof bags of approximately 40 kilos each. All these bags were duly classified
and enumerated by sampling areas.
The samples were transported by company staff to Santa Ana Peru for direct
shipping to TECMMINE (Tecnologia Minera Metalurgica Industrial Empleada
E.I.R.L.) in Lima, Peru. The metallurgical tests were supervised by Jose Mallqui
Romayna, Metallurgical Engineer.
Absolut Resources Corp. is a precious metals exploration and development company
based in Toronto, Canada. Absolut strongly believes in an international best
practices approach, and implements this on all its social and environmental
decisions. The required qualified person for the Pico Machay Gold Project is Mr.
Dan Noone who is a member of the Australian Institute of Geoscientists and is
the President and CEO of Absolut Resources Corp.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. The actual results could
differ materially from a conclusion, forecast or projection in the
forward-looking information. Certain material factors or assumptions were
applied in drawing a conclusion or making a forecast or projection as reflected
in the forward-looking information. "
ENDS
For further information, please contact:
Monterrico Metals plc Tel: + 44
20 7776 2900
Richard Ralph, Non-Executive Chairman
Susan Connolly, Investor Relations Manager
Ambrian Partners Tel: +
44 20 7776 6421
Tim Goodman
Parkgreen Communications Limited Tel: + 44 20 7851 7480
Simon Robinson/Beth Harris/Laura Llewelyn
Absolut Resources Corp. Tel: + 1 416
214 4654
Dan Noone, President & CEO
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLGUGWUGUPMGRQ
Monterrico Metals (LSE:MNA)
Historical Stock Chart
From Dec 2024 to Jan 2025
Monterrico Metals (LSE:MNA)
Historical Stock Chart
From Jan 2024 to Jan 2025
