As EHR Resources (ASX: EHX) awaits permitting approval to drill the San Markito gold-silver prospect, which is part of the La Victoria project in Peru, studies on representative ore samples have confirmed free gold and silver, as well as sulphide gold and silver and alloy gold and silver.
EHR Resources has earned an 18% stake in the project, which is operated by Canada-based Eloro Resources.
Mineralogy studies were undertaken on 18 samples taken from Rufina, San Markito and Victoria prospects at the project.
The samples were studied using various technologies and sent to the Department of Earth Sciences at Western University in Canada.
At the university under the supervision of Dr Neil Banerjee, researcher Kelsey Rozon noted some of the minerals in the samples were common with nearby significant high-sulphidation epithermal deposits and mines, including arsenopyrite, chalcopyrite, covellite, enargite, pyrite and silica with alunite-dicktie.
“Additional minerals that La Victoria has in common with nearby gold-bearing deposits include galena, jarosite, pyrophyllite, scorodite, sericite, sphalerite and tetrahedrite.”
Copper was also identified in the samples, particularly within the Rufina prospect.
As a result of Ms Rozon’s insights, Eloro is going to review diamond drill core in the context of previously completed mapping work.
“These studies clearly reveal the variety of gold and silver at La Victoria and where it is located, including evidence for a copper porphyry,” Eloro chief executive officer Tom Larsen said.
“It is especially exciting to see free gold and free silver at La Victoria as well as the alloys with very high gold to silver contents.”
Mr Larsen added the company could now look at optimising the mineral recovery process now it has a better understanding of how the gold and silver has occurred in the samples.
“We are now going to take several specific high-gold and high-silver samples and complete grind size and liberation testing,” he said.
Eloro senior vice president of mining Jim Steel said the company was “cautiously optimistic” the gold could be liberated at a coarse grind.
Earlier this month, reanalysis of previous drilling revealed the highest-grade sample from La Victoria assayed 63.8 grams per tonne gold, 57.7g/t silver and 0.77% copper.
Mr Steel carried out the audit, with Eloro stating the results were “sufficiently compelling” to consider additional exploration at the project.
“Our reconnaissance drilling showed conclusively that there is a lot of potential at the La Victoria gold-silver project,” Mr Larsen noted.
“We are now going to step back and evaluate next steps while preparing for the San Markito target drill program,” he added.
On-market share purchase
In addition to today’s positive geological news, EHR announced that director Stephen Dennis had scooped up 200,000 ordinary shares on-market at $0.024 each.
Mr Dennis now directly holds more than 2.56 million ordinary shares in the company and 2.5 million unlisted options.
He also holds 2.1 million shares indirectly through his privately managed super fund.
By late afternoon trade, EHR’s share price was up 4.55% at $0.023.