Lumina Gold (TSXV: LUM) has carved out an initial 4 million oz of gold at its Cangrejos project in the Andean foothills of southwestern Ecuador’s El Oro province, and mineralization in the deposit remains open to the northwest, south and to depth.
Cangrejos contains 191.8 million tonnes of inferred resource grading 0.64 g/t Au, 0.8 g/t Ag per tonne and 0.10% Cu, for contained metal of 4 million oz of gold, 4.6 million oz of silver and 423 million lb of copper.
The maiden estimate is based on 10,829 metres of diamond drilling in 35 holes, of which 3,190 metres in eight holes were drilled by Lumina and 7,639 metres in 27 holes were drilled by Newmont Mining (NYSE: NEM), the project’s previous operator, in a joint venture with Lumina’s predecessor company, Odin Mining and Exploration.
Odin Mining and Exploration identified the Cangrejos area in 1994 as the source of the Biron alluvial gold deposit, which produced 69,000 oz. gold.
Between 1994 and 2001, Odin and Newmont completed geophysical and geochemical surveys on the property and tested anomalies with diamond drills. The discovery hole returned a 192-metre intercept grading 1.57 g/t Au.
Read the entire story at The Northern Miner.