Vancouver-based AM Gold (CVE: AMG) said Monday that it has released an updated technical progress report for its Pinaya gold-copper property in Peru, indicating the resource area is open to further expansion.
The NI 43-101 compliant report, undertaken to summarize technical information gathered from the project from 2007 to 2008, established that Pinaya is a moderately-advanced stage exploration property, where "a range of opportunities exist" due to the number of mineralized zones that have not yet been fully drill tested.
The last technical report was completed in 2006, and did not include results from the 2007 and 2008 exploration programs, which uncovered additional mineralized zones at the project, including Antana Este, Los Vientos and Saitocco Zones.
Between 2007 and 2008, the company completed approximately 25,180 metres of diamond drilling in 68 holes, and cut an additional 73 trenches for 11.25 kilometres of new exposure.
This year, the company said it plans to expand resources at the Gold Oxide Skarn Zone (GOSZ), the Western Porphyry Zone (WPZ) and the Northwest Porphyry Zone (NWPZ), as well as test other zones of mineralization identified by previous sampling and trenching programs.
A total of 9,000 metres of drilling is planned for this year at Pinaya, with diamond drilling due to begin in the third quarter. An airborne survey covering the entire 19,200 hectare property is also underway.
A new mineral resource estimate is expected to be completed in June, the company said.
AM Gold has a portfolio of gold and gold-copper properties in the Yukon, Canada and Peru.