Latin American Minerals (CVE:LAT) (OTCQX:LATNF) says that bulk sampling at its Independencia Mine Discovery Zone has allowed the company to operate in a challenging time for junior explorers, as it has managed to continue exploration and identify important targets at its Paso Yobai gold project in Paraguay.
The recent activity at the Independencia Mine bulk-sampling operation at Paso Yobai -- described in the Management's Discussion and Analysis filed on SEDAR -- shows that Discovery Trend mineralization has now been continuously exposed over a 375 metre strike length.
The operation at the site allows for intensive mineral sampling from the surface to a depth of 20 metres, verified by bulk-sample processing, from which proceeds are reinvested to support the operation. To date Latin American Minerals has produced 858 troy ounces of gold and 240 troy ounces of silver, with total proceeds from all doré sales of $1.4 million.
The company has also announced the initial findings of the geophysical surveys being conducted over seven gold-mineralized target sectors at the Paso Yobai project.
The company said Thursday it has identified a potential mineral target below 150 metres depth, which has been detected to run parallel to the Discovery Zone trend, and has been prioritized for drill testing.
Eight new discrete drill targets have been delineated over an area of 2000 m x 1500 m at the company's landmark Tacurú Block, where gold was first drilled on the 14.8 km X-Mile Trend, located 3.5 km east of the Discovery Trend.
Geophysical surveys are continuing at the project with the expectation of producing additional drill targets, Latin American said. It expects to complete this targeting work by mid-year.
The company said Thursday that it anticipates that proceeds from bulk sampling will cover all routine production and corporate overhead expenses before the end of the calendar year. At the operation, high-grade ore is processed on site and the recovered gold is smelted into doré bars, which is then sold to a refinery in Canada, with the proceeds financing operations and basic exploration costs at Paso Yobai.
The accumulated gross sales for 2013 to date is $722,446, well up on the amounts for 2012, which were recorded as bringing in $686,560 in gross sales over the entire year. The company sees this trend of increasing gold sales as likely to continue as it continues to improve efficiencies at the bulk-sampling facility, it said.
"The bulk-sampling program is proving the Discovery Trend mineralization to be continuous along strike, validating our drill data," said president and CEO Miles Rideout.
"The proceeds from the sales of gold doré product are significant and assist the company to operate effectively in this challenging market. The geophysical surveys have revolutionized our understanding of the project and will greatly facilitate follow-up drilling. Our current focus is to complete target identification in the remaining sectors using this new data."
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