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

St. Elias signs diamond drilling contract for Tesoro

|Includes: SL Industries Inc (SLI)

Vancouver-based St. Elias Mines (CVE:SLI) said Thursday that it has signed a diamond drilling contract for its Tesoro gold project in Peru.

The initial phase of the program will consist of 10,000 metres of drilling, with drill targets already laid out and prioritized.

Logistical support for the campaign has already begun, including the mobilization of equipment. Drilling will be scheduled to run in two shifts, 24 hours per day, seven days a week, until completed.

So far, it has been recommended that 52 holes be drilled to test the first two priority targets at the site.

As of the end of May, 15 trenches totaling 1,200 metres were completed at the property, as part of the current mechanical trenching program. Two hundred and fifteen samples were collected from the trenches, the company said.

The Tesoro Gold Project is 100% owned by St Elias, with no underlying royalties. The property covers approximately 6,974 hectares, and is part of the prolific Nazca-OcoƱa gold belt parallel to the Pacific coast of southwestern Peru.

To date, the company has identified five mineralized zones at Tesoro, with more than 50 quartz veins, having a total combined length of 9 kilometres. Work so far has suggested that the veins could extend to considerable depths, St. Elias said.