Hochschild Mining (LSE: HOC; US-OTC: HCHDF) has discovered a new zone to the west of operations at its Pallancata silver-gold mine in southern Peru.
The new area, called Royropata, is not in the current permitted area, but the company believes that the discovery “has the potential to secure the medium-term future of the Pallancata mine.”
Highlights from the discovery include 17.6 metres grading 8.5 g/t gold and 2,520 g/t silver in drill hole DLRY-A10 and 6.5 metres of 6.6 g/t gold and 1,994 g/t silver in DLRY-A11, both in the Marco West Vein.
Hochschild says it plans to announce a preliminary inferred resource for the new discovery “in the next few weeks and will make a decision on the operation’s short-term future in 2023.”
“The brownfield exploration team expects to continue drilling a number of targets within the existing permitted area during the remainder of 2022,” Hochschild said in its Wednesday news release. “Depending on those results and the level of precious metal prices, Hochschild will make a decision on whether to place the mine on care and maintenance in 2023, while the company secures the necessary permits to bring the new discovery into production.”