Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Elementos Finds Second Gold Zone At Santo Domingo

Elementos (ASX: ELT) has further unlocked the potential of the Santo Domingo project in Argentina with the discovery of a new mineralised gold zone adjacent to the porphyry system.

A 400 metre long zone of gold-bearing mineralised shear-structure has been identified 300 metres to the west of the El Arriero porphyry prospect.

Grades of up to 25.5 grams per tonne (g/t) gold and 35g/t silver occur in sheeted quartz stockwork veinlets within a larger shear structure.

A continuous rock chip channel sample across the structure assayed 19.7 metres at 2.1g/t gold and 2g/t silver, including 0.5 metres at 25.5g/t gold and 14g/t silver and 0.2 metres at 24.3 g/t gold and 35g/t silver.

The mineralised shear structure occurs along the border of the circular feature that encompasses the three largest porphyry-style mineral prospects at Santo Domingo.

The new mineralisation occurs as discrete, high grade gold, sheeted veinlets in a strongly altered shear zone, typical of an intermediate sulphidation epithermal (ISE) system, and similar to those seen in the Yvette prospect in the east of the property.

The existing Yvette system has been traced over 8.5 kilometres of outcrop on two diverging trends located three kilometres east of the new occurrence.

The new El Arriero West prospect has been exposed by recent flooding, highlighting the potential of the area for further discoveries of mineralisation on surface.

The lineations of the Yvette Norte trend and the new El Arriero West trend appear to intersect within the El Arriero East porphyry prospect, further emphasising the potential of the project.

Further exploration is required to map the extent of the system which is visible on surface over 400 metres of strike length and trends north-eastwards.

Required follow-up work includes identifying the northern and southern extensions of the structure, and their relationship with the El Arriero porphyry system.

Exploration potential

The Santo Domingo project exhibits two distinctive styles of mineralisation that need further testing to determine their economic potential

The gold-silver-polymetallic epithermal structures, cross-cutting the phyllic and potassic alteration peripheral to the porphyry mineralisation, have the potential to increase the overall grade of the system.

The mineralised shear structures found in the El Arriero West prospect expands the array of stockwork-style ISE targets peripheral to the porphyry mineralisation.

On a larger scale, this is further evidence of mineralisation adjacent to the 2 kilometre diameter circular anomaly which encloses the three porphyry prospects, with Yvette and El Arriero West as peripheral structures.

Project progress

Elementos made significant progress during the last financial year, advancing its projects in Argentina, and acquiring and commencing exploration on two new projects in Chile.

The primary focus during the first half of the year was on the Manantiales project in Argentina.

Further encouraging drilling results from the phase two and phase two extended drilling programs were reported, but more drilling is required to define the extent of the company's first high grade gold-silver vein discovery at Manantial.

In September, Elementos announced a maiden resource of 36,310 ounces of gold equivalent at the Manantial vein, with the system open along strike, both north and south, and at depth.

Meanwhile, the company also began an extensive drilling program in October at its Chilean project, Tamaya. Results from the program are expected shortly.

The project is located in a region with excellent exploration, mining, and development infrastructure, being host to several world-class mines and deposits.

Historical mining activities at Tamaya apparently focused on selectively mining high grade sulphide copper veins, with reported production of 2 million tonnes at 12% copper, with grades up to 20%.

Acquisition trail

Elementos is continuing to investigate the possibility of further project acquisitions.

A. Anthony McLellan, chairman, said today at the company's AGM that Elementos hopes to be able to make an announcement shortly.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.