Genesis encouraged by Chilean drilling

THE DRILL SERGEANT: Genesis Minerals has reported the receipt of encouraging results from the final three holes drilled at the company’s Dinamarquesa project located in northern Chile.

The company said it had intersected extensive zones of porphyry-hosted copper-gold and molybdenum during the drilling.

The results include:

–    17 metres at 0.53 per cent copper equivalent (0.29% copper, 0.15g/t gold);

–    80m at 0.48% copper equivalent (0.28 % copper, 0.16g/t gold, 117 parts per million molybdenum);

–    9m at0.55% copper equivalent (0.27 % copper, 0.25g/t gold, 130 ppm molybdenum);

–    17m at 0.77% copper equivalent (0.18% copper, 0.76g/t gold);

–    15m at 0.47% copper equivalent (0.30% copper, 0.21g/t gold); and

–    19m at 0.41% copper equivalent (0.25% copper, 0.11g/t gold, 101 ppm molybdenum).

In addition to the porphyry style mineralisation Genesis said it had also intersected high-grade gold mineralisation associated with quartz-sulphide veins, including:

–    0.2 metres at 49.2 grams per tonne gold;

–    0.3m at 21.1g/t gold;

–    0.64m at 8.2g/t gold; and

–    0.2m at 8.7g/t gold;

“The recent drilling has again returned very pleasing results with wide zones of porphyry hosted copper, gold and molybdenum mineralisation intersected,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.

“The porphyry system remains completely open. It is untested to the north and at depth where further drilling is required to define the extent of the system and where we believe the greatest potential lies.”

Genesis’ interpretation of the latest drilling results is that they have confirmed that there is potential to define a large porphyry copper – gold – molybdenum system at the Dinamarquesa project.

The company said it also considers a recently-defined quartz-feldspar porphyry forms a major exploration target for future work at Dinamarquesa.

“The high-grade, vein hosted gold mineralisation returned from the final holes is also very encouraging with further detailed drilling required to define the continuity and extent of the vein mineralisation,” Fowler said.

Genesis Minerals entered into an agreement in August 2010 with a private Chilean company to acquire a 100% interest in the Dinamarquesa project.

Limited previous wide spaced drilling carried out on the project had delineated a number of high-grade gold structures.

The project is located within the Inca de Oro gold-copper belt, which forms part of the Palaeocene Porphyry belt of northern Chile.