EHR Resources (ASX: EHX) is poised to kick-off a phase two diamond drilling campaign across its partly-owned La Victoria gold and silver project in Peru and has undertaken A$1.9 million placement to fund the activity.
La Victoria is close to major Tahoe Resources and Barrick Gold-operated gold mines and is managed under a joint venture between Eloro Resources (TSXV: ELO) and EHR, with EHR earning a 25% interest.
EHR accumulated its initial 10% holding after it completed phase one exploration earlier this year, which included 2,261m of reconnaissance drilling at the project’s Rufina prospect.
Preliminary exploration across the 80 square kilometre project identified several targets including Victoria, Victoria South, Rufina and San Markito.
Better drill results from phase one at Rufina were 7.4m grading 3.46 grams per tonne gold, including a 3.4m interval with 7.31g/t gold.
Another notable intersection was 4.5m grading 2.10g/t gold with a 1.6m interval containing 4.31g/t gold.
According to EHR, the duo is “encouraged” by the results from the phase one drilling program and has committed to a phase two diamond drilling campaign.
Drilling to begin in May
EHR is anticipating approvals to move drill rigs to La Victoria next month.
The phase two campaign will comprise 4,500m in diamond drilling targeting San Markito, Victoria, Victoria South and Rufina.
Gold and silver has been identified at San Markito, with the initial target zone 1,300m long and 400m wide.
In the upcoming campaign, EHR will drill six holes into the mineralisation at San Markito totalling about 1,785m.
Similar to San Markito, six diamond holes have been planned across Victoria and Victoria South.
Meanwhile at Rufina, two holes are scheduled to test the Candelario sector at Rufina.
La Victoria’s potential
Independent work prepared by Dr Neil Banerjee from London, Ontario’s Western University confirmed that an extensive epithermal gold mineralizing system exists at La Victoria, and that La Victoria could be part of a “very large district-wide system”.
“Our geologists have been working very hard to prepare for the phase two drill program,” Eloro chief executive officer Tom Larsen said.
“We are especially excited about the work that shows the sedimentary deposit environment at San Markito is similar to La Arena and Shahuindo, and about the preliminary results from Western University confirming that mineralising systems at La Victoria are similar to those at other gold-silver deposits in the northern Peru mineralised belt – from the Pierina gold mine in the south to Yanacocha gold mine in the north,” Mr Larsen noted.
To fund the exploration campaign, EHR plans to raise A$1.9 million, with its own board agreeing to take up a combined A$145,000.
Under the placement, EHR will issue circa 21 million shares at A$0.09 each.