E2 Metals advances Conserrat and El Rosillo gold-silver projects in Argentina
E2 Metals will begin drilling El Rosillo in May and focus on two prospects where previous trenching unearthed up to 0.7m at 500g/t gold and 153g/t silver.
Infill diamond drilling at the Conserrat gold-silver project in Argentina in the three months to end June has intersected high-grade mineralisation for E2 Metals (ASX: E2M).
Drilling was aimed at extending known mineralisation and returned highlights from the Malvina prospect of 3 metres at 3.1 grams per tonne gold and 575g/t silver (11.2g/t gold equivalent) from 39.2m; and 1.7m at 4.5g/t gold and a bonanza 2,065g/t silver (34g/t gold equivalent) from 143.3m.
Malvina is a new ‘blind’ vein discovery located in the central project area where drilling to date has defined three metre-scale vein structures hosted in a homogenous unit of the White Lithic Tuff host rock.
Scout drilling
Regional scout drilling during the quarter led to the discovery of the Malvina Norte vein structure, 125m north of the prospect on a separate parallel trend.
The structure was defined over 600m strike on initial drill sections spaced 150m apart.
While gold and silver grades were generally low, E2 said one of the holes returned 2m at 1g/t gold and 23g/t silver (1.3g/t gold equivalent) showing that grades are increasing to the southeast where further scout drilling is planned.
Andrea Sur results
Andrea Sur is located 2.5km from Malvina within the western extension of the Conserrat epithermal vein field.
It was initially prioritised for scout drilling due to the presence of epithermal vein boulders extending ever 150m of strike.
Drilling during the quarter included three holes for 250.5m, with best results of 4m at 8.4g/t gold and 31g/t silver (9g/t gold equivalent) from 51m including 1m at 31.2g/t gold and 45g/t silver (31.8g/t gold equivalent).
Priority targets
In June, E2 confirmed that its regional exploration program had defined 19 priority geological and geochemical targets at Conserrat for drill testing, including new outcropping high-grade vein structures and blind extensions of known mineralised corridors.
A controlled source audio magnetotellurics (CSAMT) survey in May contributed to a 3D geological and structural model which was used to predict the location of the mineralised corridors under cover and possible parallel trends.
El Rosillo drilling
Also in May, E2 commenced an inaugural 2,500m drilling program at the El Rosillo project in Rio Negro province.
The program aims to test seven gold mineralised structures defined in trenches which returned assays including 1.9m at 184g/t gold and 55g/t silver; 10.7m at 3.7g/t gold; and 1m at 279g/t gold and 116g/t silver.
A total of 1,500m diamond drilling has been completed to date, with drilling slower than expected due to adverse weather conditions.
Costs and cash at hand
For the three months to end June, E2 spent $2.7 million on exploration and evaluation at Conserrat and El Rosillo, $71,000 on staff costs and $399,000 on administration and corporate costs.
It also received $1.2 million of net income from the sale of short-term Argentine CCL bonds.
E2 remains in a robust financial position with $10.7 million cash at hand.