The Las Calandrias property contains a low-sulfidation epithermal system located in the eastern part of the Santa Cruz province in southern Argentina. The property is in the Deseado Massif, a 60,000 km2 area which hosts numerous low-sulfidation epithermal vein and vein-breccia deposits. Producing mines in the Deseado Massif include Goldcorp’s Cerro Negro mine, AngloGold Ashanti’s Cerro Vanguardia mine and Yamana’s Cerro Moro mine.
The principle area of the property that has been explored is the Las Calandrias zone consisting of Calandria Sur and Calandria Norte. Calandria Sur is a bulk tonnage rhyolite dome-hosted deposit and Calandria Norte is a vein/breccia system that has been drilled along a 400 metre strike length. Testing possible extensions to the known high-grade gold-silver mineralization is a priority for Capella Minerals.
A September 2018 Mineral Resource estimate was published for the Las Calandrias zone and totaled 7.4 Mt of Indicated material at grades of 1.3 g/t gold and 24.65 g/t silver at Calandria Sur, and 0.6 Mt at 3.1 g/t gold and 8.2 g/t silver at Calandria Norte (0.8 g/t to 1.5 g/t Au cut-off ).
The Morena vein breccia system lies immediately to the northwest of Calandria Norte and has seen only limited drilling. Outcrops along the vein system have returned gold grades ranging from below detection to a high of 116 g/t gold. The northern extension of the Morena vein has chalcedonic silica exposed on surface, similar to the northern part of the Calandria Norte vein, and remains completely untested.
The Refugio target lies approximately 6 km west of Calandria Norte, and consists of a 1.5 km-long, sub-cropping vein breccia system with high anomalous molybdenum concentrations. Scout drilling at Refugio will form part of the current drill program.
An updated Mineral Resource estimate was reported at Las Calandrias.
High-grade gold mineralization was intersected outside of the northern limit of the existing mineral resource area at Calandria Norte. Assays received include 4.0 metres of 11.0 g/t gold and 49 g/t silver from 58 metres. Drill holes were also completed in the Morena vein breccia system with results indicating the potential for the development of a significant new gold-silver zone.
A 3,500 metre diamond drill program commenced at the Calandria Norte, Morena and Refugio targets.