Explorer Confirms Presence of High-Grade Gold at Peru Site

The Gold Report - Streetwise Exclusive Articles |

Source: Streetwise Reports   09/20/2018

Surface gold mineralization expands to 800-by-500-meter area.

Palamina Corp.'s (PA:TSX.V; PLMNF:OTC.MKTS) recent field campaign at its Coasa Gold Project in southeastern Peru continues to confirm the presence of high-grade gold at surface in the Veta Zone where continuous channel sampling returned 1.8 meters of 19.6 g/t gold and 0.9 meters of 103 g/t gold.

"The recently discovered zone of surface gold mineralization has now expanded to cover an 80- by-500-meter area and further selective rock-chip sampling in the Veta Zone returned up to 620 g/t (19.9 oz/t) gold," stated the company. "A total of 176 geochemical samples were collected at the Veta Anomaly during the August field campaign; 155 as continuous channel samples varying from 0.9 to 4.5 metres true width across mineralized structures hosted by intermittent in-situ outcrops located on scree-covered slopes throughout the Veta discovery zone."

Overall, 64% of channel and rock-chip sampling results turned up anomalous gold grades (>0.1 g/t gold), 15% resulted in gold contents >1 g/t gold and 3% >10 g/t gold (or 8.5% >2 g/t gold). Four visible native gold-hosting structures have now been discovered.

"The footprint of the Veta gold discovery zone at Coasa continues to expand. Channel sampling has confirmed significant gold mineralization within the slate and siltstone host rocks and returned up to 1.8 metres of 19.6 gpt gold. The heli-borne geophysical survey underway is over 50% complete and will serve to better understand the prospective structures at Coasa," stated Andrew Thomson, president and CEO of Palamina. "Selective samples are not representative of the mineralization hosted on the property. The 800 x 500 meter Veta anomaly is located within a larger 1.8 x 0.5 km prospective area of structural deformation (folded and possibly tectonically displaced shear zones), which accommodates lesser folded fault-shear structures incorporating both sub-parallel aligned as well as transversally aligned swarms of gray-white quartz veins, veinlets and micro-veinlets. These, in turn, are hosted by sub-vertically aligned fine-grained sedimentary sequences of slates and siltstones belonging to the Ananea Formation."

Encouraging analytical results obtained from recent sampling and mapping campaigns on the Coasa Gold Project's Veta Anomaly are confirming the exploration potential of this highly prospective zone of orogenic gold mineralization, stated the company.

Up to three locations of differently oriented mineralized quartz veins, veinlets and micro-veinlets have been recognized.

"The most dominant suite is developed along a WNW trend. The above information, coupled with the confirmed coincidence of several established mineralizing controls pertinent to orogenic gold deposits occurring within the POGB, provides a sound grounding for future drill testing of the Veta Anomaly," noted the news release, which also stated that social and environmental permitting as well as drill permitting are underway.

The company plans to follow up with systematic channel sampling of the broad mineralized zones identified to date, and soil sampling will be considered over areas without rock exposure,

CEO Andrew Thomson, in a Sept. 13 interview with Gerardo Del Real of Resource Stock Digest, discussed the meaning of the chip sample to the company in an expanded gold zone:

"Previously, the campaign that we were running at Coasa was a chip sampling program where again we were seeing quite high grades of 39 gram per tonne material from our chips. So really the secret here is to go back and follow up with channel sampling. What the channel sampling does—if it's horizontal and perpendicular—you're trying to now get volume or an understanding of whether or not the wall rocks, which in this case are slate, are also mineralized.

"The significance of the high grade is really there as a chip sample just to show that we're finding different zones. So the last time that we spoke, we were quite encouraged that we found one visible gold zone. We're now up to four zones. One of those new zones where we took a chip sample is running 19.9 ounces, which is bonanza grade for these style systems. So really that is a bit of a flash in the pan, but where it starts to become more important is when you do your channel sampling across, which in this case is rock saw, and those samples get sent in, when you start seeing minable widths, i.e. a meter and a half and above that, at good grade, which in this case is 1.8 meters and 19.6 grams. That's when it starts to get exciting because that's when you can start building or working towards something where you can get tonnage in a resource."

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( Companies Mentioned: PA:TSX.V; PLMNF:OTC.MKTS, )

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