Montero Mining and Exploration Ltd (TSX-V:MON, OTC:MXTRF) said a new drillhole at its Elvira Gold Project in northern Chile hit strong signs of a gold-bearing hydrothermal system, with pyrite mineralization found at depth.
The hole, MON-ELV-02, was drilled to 625.25 metres and targeted a zone the company flagged as high-priority using geological mapping, geochemistry, geophysics and AI-assisted data modelling.
Logging showed altered volcanic rock near surface sitting on top of an intrusive rock body called a porphyry, the type of formation often associated with large gold and copper deposits. Pyrite, a mineral commonly linked to gold mineralization, showed up repeatedly below about 253 metres, including at the very bottom of the hole. Trace copper minerals were also spotted but need lab confirmation.
Dr. Tony Harwood, President and CEO of Montero, said the logging results back up the company's target model for Elvira.
“The hole intersected the predicted volcanic sequence and underlying porphyry, together with high-sulphidation alteration and pyrite corresponding spatially to the high-chargeability anomaly,” Harwood said in a statement. “Assay results will determine the metal content of the hydrothermal system."
The hole was drilled next to an old well, EL-12, drilled decades earlier by Buena Vista Gold Corp to about 282 metres, where Buena Vista had reported a strong hit. Montero's new hole went more than 340 metres deeper than that old test.
Core samples are now being cut and sent to the lab, with results expected to sharpen the company's next round of drill targets.