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Promesa reaches sulphide zone in third hole at Cerro Curunday gold project in Peru

Promesa (ASX: PRA) has completed the third diamond hole at its Cerro Curunday gold project, drilling to a depth of 274 metres, hitting the oxide zone and pushing through to the sulphide zone.

The oxide zone was targeted and ended at a depth of 191 metres where the top of the sulphide zone was encountered.

The company has also commenced the fourth diamond hole which is currently at depth of 201.9 metres, from a drill pad located to the north of the first pad at the project located in the La Libertad Province of Peru.

The third drill hole was completed more quickly than the previous two holes due to the shallower hole depth, increased supply of water, improved drilling practices and optimised mud weights.

The company is also progressing further field level exploration and sampling around the Cerro Curunday and Las Huacas project areas.

Today's drill results add to the anticipation building at the project, which is similar and near to Lagunas Norte, Barrick's (NYSE: ABX) 9 million ounce gold project.

The program is aiming to test a series of gold-bearing zones in “elephant country” in Peru, identified by channel and rock chip sampling along a 2.1 kilometre strike length of epithermal gold mineralisation.

The third hole was drilled forms part of the overall planned 6,000 metre Stage One drill program with drilling to date representing 18% of the total drill program.

All drilling is being undertaken using diamond drilling from the surface to enable detailed logging and sampling.

The ground conditions and the type of host rock environment encountered support the targeting of this location for the first phase of the drilling program.

The mineral assemblage observed represents an important feature for the telescoping of the epithermal zone into the porphyry environment. These preliminarily observations confirm the original modelling of the mineralisation.

There has been a delay in receiving assay results due to a backlog of samples being sent to the laboratory by other mining companies in Peru. However, assay results from the first set of drill holes are expected to be towards the end of November 2011.