Oct 20 2010
Novus Gold Corp. (TSX VENTURE:NOV)(OTCQX:NVXXF)(FRANKFURT:VGN) has provided an update on exploration activities on the La Yagua copper-gold property (9,900 hectares) in the Dominican Republic.
The property adjoins the GlobeStar Mining Corporation (TSX: GMI) property hosting the Cerro de Maimon copper-gold-silver mine. Perilya Limited (ASX: PEM) has made an approximately C$184 million offer to acquire GlobeStar. The Company is currently formulating plans for an aggressive exploration program on the La Yagua property.
Exploration work, carried out in 2010, has outlined five new high priority gold-copper targets on the property. The most significant target is defined by high gold values in stream sediment samples along the Osama River. This target is 6 kilometers long and is open for expansion. The Osama River is the surface expression of a major lineament.
Work carried out in 2009 on the La Yagua property (as reported in press releases dated August 12, 2009 and October 8, 2009) outlined a north-south trending, one kilometer long structure represented by gossans containing copper-gold-silver mineralization. Grab sample values, from oxidized material, ranged as high as 21.33% copper, 13 g/t gold and 173 g/t silver. More than 50% of the samples collected graded more than 1% copper. Two similar parallel mineralized structures were partially exposed. Grab samples from these structures returned values of up to 2.95% copper, 8.4 g/t gold and 17 g/t silver.
The mineralized zones display classic volcanogenic massive sulphide (VMS) characteristics: rock alteration consists of quartz-sericite, sericite and chlorite and is stratabound between an andesite footwall and a dacite hanging wall. The mineralization on the La Yagua property is located on the same stratigraphic interface as the Cerro de Maimon mine (Globestar Mining) located 19 kilometres away that is exploiting a VMS deposit (6,000,000 tonnes of 2.5 per cent Cu, 1.2 grams per tonne (g/t) Au, 38 g/t Ag and 1.5 per cent Zn). There is potential for 14 kilometres of this favourable interface on the La Yagua property.
Novus Gold also owns the La Paciencia property (8,600 hectares) which is underlain by the same geology as the Pueblo Viejo gold deposit located 10 kilometres to the east.
Mining in the Dominican Republic
The DR is a stable Caribbean country that occupies the eastern two-thirds of the island of Hispaniola, with Haiti occupying the remaining one-third. The largest mining development in the country is the Pueblo Viejo deposit which is being put into production by Barrick and Goldcorp (60 and 40 per cent respectively). The project hosts a reserve of 23.7 million ounces of gold, 130 million ounces of silver and 500 million pounds of copper to be mined over a 25-year mine life. The mine is expected to produce one million ounces of gold per year for the first five years.
Mike Magrum, PEng, a qualified person under National Instrument 43-101, has approved the technical content of this news release.
Source: Novus Gold Corp.