In an operational update for the Barsele gold-VMS (volcanogenic massive suphide) project area in Vasterbottens Lan in northern Sweden, the company said the update involved nine holes, of which six were expansion, two were infill and one was a regional test.
One hole was abandoned due to bad ground conditions. It said 86,310 meters of core has been collected from a total of 191 drill holes and the base of till sampling is still ongoing.
The recent surface extension trenching programme by Agnico Eagle has been completed. It said structural mapping along the 90.0 meter by 15.0 meter corridor validates the existing gold distribution model and provides detailed information on quartz veining and reactivation of the various shearing and mineralization orientations.
Barsele's President, Gary Cope said in the statement: "Agnico Eagle has made significant progress along the Avan-Central-Skirasen gold trend, as well as the Risberget zone, and most recently the Norra VMS zone.
“Base of till and surface till sampling are yielding positive results and this work suggests that the metal endowment within the project claims could be significantly larger.”
The exploration programme is operated by joint venture partner Agnico Eagle Mines Limited (TSX:AEM; NYSE:AEM), which owns 55% and Barsele has the remaining 45% stake.
Agnico Eagle can earn an additional 15% in the project through the completion of a pre-feasibility study. There is no cash outlay by Barsele until the pre-feasibility is completed.