Eric Sprott-backed E2 Metals (ASX: E2M) has begun drilling its El Rosillo greenfields project, which is on the same Gastre Fault that hosts Pan American Silver’s Navidad deposit in Argentina’s Rio Negro province.
The diamond drilling program will comprise 2,500m and target seven gold structures within five prospect areas. All-up 1.4km of cumulative strike will be tested.
Priority targets have been firmed-up from trenching, with notable results at Prospect 37A of 1.9m at 184 grams per tonne gold and 55g/t silver, 10.7m at 3.7g/t gold, and 25m at 2.9g/t gold.
Over at Prospect 38A, trenching unearthed 1m at 279g/t gold and 116g/t silver, while Prospect 38F and Prospect 38E returned 7m at 3.6g/t gold and 1.2m at 8.7g/t gold respectively.
E2 Metals managing director Todd Williams said the company was “excited” for the first drilling program at El Rosillo, which will further test the “spectacular grades and visible gold” identified in the trenching.
“We believe that El Rosillo, which includes the broader district controlled 100% by E2 Metals, has all the hallmarks of a large intrusion-related gold system, with the potential for a major discovery heightened by the proximity to the Gastre Fault that hosts the world-class Navidad silver deposit.”
Drilling has already begun at Prospect 37A, and the campaign is expected to take six weeks to complete, with assays anticipated four weeks from dispatch to the laboratory.
Navidad deposit and Rio Negro province
According to Canada-based Pan American Silver, Navidad is one of the world’s largest undeveloped silver deposits.
The deposit has 751 million ounces in contained silver resources.
In addition to El Rosillo, E2 Metals also has three other projects on the western part of the Rio Negro province: Vista Alegre, Ofelia, and Paredes.
Eric Sprott backs E2 Metals
Globally renowned commodity investor Mr Sprott backed E2 Metals in March this year by cornerstoning its $8.5 million placement, which saw him emerge as a major shareholder.
Mr Williams said Mr Sprott’s backing validated the “inherent value” in E2 Metals’ projects.
In addition to unlocking the value at El Rosillo, E2 Metals is actively exploring its Conserrat gold and silver project in Argentina’s Santa Cruz province.
Drilling at the Malvina target within Conserrat has produced recent highlight intercepts of 14m at 8.7g/t gold and 2,541g/t silver from 67m, including 7m at 17g/t gold and 4,759g/t silver.
Conserrat is close to AngloGold Ashanti’s (ASX: AGG) Cerro Vanguardia mine, which has historical and current reserves of 8.9Moz gold and 137Moz silver.