E2 Metals receives drilling permits for El Rosillo gold project
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.
Melbourne-based E2 Metals (ASX: E2M) has received drill permits for the El Rosillo gold discovery located in the Rio Negro province of Argentina, paving the way for exploration to commence.
An environmental impact assessment (EIA) report submitted by the company’s wholly-owned subsidiary Ivael Mining SA was approved by the local regulators, and the company has received all statutory approvals to start drilling.
Work will begin in May at two prospects where trenching has defined high-grade bedrock-hosted mineralisation in continuous surface samples.
Best assays from that exercise have been 1m at 279 grams per tonne gold and 116g/t silver; 3m at 113g/t gold and 35g/t silver, including 0.7m at 500g/t gold and 153g/t silver; and 10.7m at 3.7g/t gold including 3.2m at 9.3g/t gold.
An excavator is on site to accelerate trenching, which has been expanded to 1,500m and will test all priority surface targets within both prospects.
Final trench assays results and drill plans are expected next month.
Capital raising
Managing director Todd Williams said drilling would be funded by an $8.5 million capital raising completed this month that was cornerstoned by billionaire investor Eric Sprott.
“These approvals have come through 12 months after the start of our first reconnaissance exploration within the western Rio Negro province, including El Rosillo,” he said.
“The proceeds of the raising will help us to capitalise on these permits with an appropriately-sized inaugural drill program.”
Underexplored area
Argentina’s Rio Negro province contains the northern portion of the Somuncura Massif, which is a large underexplored volcanic area geologically similar to the Deseado Massif in Santa Cruz.
The Somuncura Massif is host to Pan American Silver’s Navidad deposit, which is currently the largest undeveloped deposit of its kind in the world with over 750 million ounces of silver resources.
E2 Metals has consolidated four districts in the western part of Rio Negro centred on the Vista Alegre, Ofelia, Paredes and El Rosillo properties.
Initial reconnaissance mapping and sampling last year defined 12 mineralised prospects of possible intrusion related gold (IRG) affinity over an area spanning 100km.
El Rosillo will be the first project in the area to be systematically explored by E2 Metals.