Genesis Minerals (ASX:GMD) has started drilling at its Poncha project in Argentina with the 2,500 metres drill program targeting high grade epithermal gold targets along with potential bulk tonnage breccia targets.
Drilling will continue at the Southern Epithermal Target to follow up high-grade gold mineralisation intersected in drill-hole 12 PODH 003 in 2012.
The analytical results included 12.15 metres at 4.87 grams per tonne gold, 15.9g/t silver and 0.49% zinc.
That drill hole was perpendicular to a previous drill hole PC13, drilled in 2011, which intersected 266 metres at 1.21 g/t gold including 22 metres at 3.01g/t gold, 5.4g/t silver and 0.3% zinc.
It also returned 61 metres at 3.04g/t gold containing 4 metre at 10.84g/t gold and 7.9g/t silver and 8 metres at 10.91g/t gold and 24g/t silver.
The strike extensions of these results along with a number of gold geochemical surface anomalies and structural targets will be tested at the Southern Epithermal Target.
It will also target in the drilling program the large untested alteration system (2 kilometres by 2 kilometres) coincident with a strong, induced polarisation chargeability anomaly at the Northern Porphyry target at Poncha which points to a large bulk tonnage porphyry system.
Genesis has an agreement with Teck Argentina, a wholly owned subsidiary of Teck Resources (TSE:TCK) to acquire 100% of Teck’s rights and interest in the Poncha project, subject to a royalty to Teck.
It had a cash balance of just over $0.58 million at the end of last quarter. Recently it raised $0.5 million via a placement followed by a $1.65 million fully under written entitlement on a 1 for 4 basis at an issue price of $0.05 per share.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.