Aguia Resources Reveals New High-Grade Gold-Copper Deposit Model for El Dovio Project
AGR (AGR) Share Update September 2024 Sunday 29th
Aguia Resources Unveils High-Grade Gold-Copper Deposit Model for El Dovio Project
Aguia Resources Limited (ASX: AGR) has announced a significant update for its El Dovio Project in Colombia, unveiling a revised interpretation that highlights high-grade polymetallic gold-copper-silver-zinc mineralization.
Instant Summary:
- High-grade polymetallic mineralization with grades up to 11.7 g/t Au over 16 meters.
- 34 diamond drill holes reveal significant gold, copper, silver, and zinc intercepts.
- Channel sampling in exploration adit exposed 21m at 9.18g/t Au, 2.46% Cu, 15.14g/t Ag, and 2.04% Zn.
- Metallurgical testwork shows high recovery rates: 96.4% gold, 97.8% copper, 91.1% silver, and 96.8% zinc.
- Revised geological interpretation suggests a structurally controlled deposit rather than a VMS deposit.
Project Highlights
The El Dovio property, wholly owned by Aguia Resources, hosts high-grade polymetallic mineralization with impressive grades. Highlights include up to 11.7 g/t Au over 16 meters in Trench #1 and 104 g/t Au over 1 meter.
34 diamond drill holes drilled between 2012 and 2014 returned significant intercepts, such as 2.1m at 15.60g/t Au, 20.31g/t Ag, 2.24% Cu, and 2.09% Zn in hole D13-01A, and 6.85m at 5.86g/t Au, 5.89% Cu, 34.29g/t Ag, and 1.29% Zn in drill hole D13-05.
Channel Sampling and Trenching
Channel sampling in the exploration adit exposed 21 meters at 9.18g/t Au, 2.46% Cu, 15.14g/t Ag, and 2.04% Zn. Trenching near the tunnel portal interpreted a true width of 6 meters at 13g/t Au, 5.9% Cu, 43.4g/t Ag, and 1.4% Zn, and 45 meters at 5.6g/t Au, 0.5% Cu, 6.8g/t Ag, and 0.4% Zn.
Metallurgical Testwork
Metallurgical testwork by McClelland Laboratories Inc. of Reno, Nevada, on a 53kg composite bulk sample returned high recovery rates: 96.4% of the contained gold, 97.8% of copper, 91.1% of silver, and 96.8% of zinc.
Revised Geological Interpretation
Aguia's geologists have reinterpreted the geology and structural setting of the El Dovio project, challenging the former interpretation by Newrange Gold Corp. The new model suggests a structurally controlled deposit rather than a Volcanogenic Massive Sulphide (VMS) deposit.
The new interpretation indicates that the mineralization at El Dovio is strongly structurally controlled, related to faults and shear zones, and not indicative of a submarine environment typical of VMS deposits.
The revised interpretation of the El Dovio project could significantly impact Aguia Resources' stock. The high-grade polymetallic mineralization and positive metallurgical test results suggest a promising future for the project. Investors may react positively to the potential for high returns from the project's development.
Investor Reaction:
Analysts are likely to view the revised interpretation positively, given the high-grade mineralization and strong recovery rates. However, the shift from a VMS model to a structurally controlled deposit may require further validation through additional exploration and drilling.
Conclusion:
Investors should keep an eye on further developments and exploration results from the El Dovio project. Aguia Resources' strategic approach to developing this high-grade deposit will be crucial in realizing its full potential.