Alicanto Minerals Ltd (ASX: AQI) has announced the commencement of a large diamond drilling programme at its Arakaka Gold Project in North-West Guyana. The program is fully funded under the Earn-In-Agreement with internationally diversified gold producer, Nordgold SE.
Alicanto said that the 12,000 metre of diamond drilling focused on the under explored and highly prospective Arakaka Main Trend.
The company announced that four stacked, sub-parallel, low dipping mineralised gold zones across 3200 metres strike will be initially targeted.
Some of the previous significant intercepts from earlier reconnaissance drilling at the target includes 13.5 m @ 7.36 g/t gold from 87m; 1.9 m @ 30.66 g/t gold from 86m; and 20.5 m @ 1.43 g/t gold from 65m.
Alicanto also announced the updates on the Copper-Zinc-Gold-Silver VMS projects in Sweden.
Arakaka gold project
The Arakaka gold project is located in Guyana’s under-explored Northwest Mining District. The project includes multiple mineralised corridors, each including multiple prospects that range from grass-roots, to advanced stage exploration.
Some of the walk-up drill targets within Arakaka with >1moz Au potential include Purple Heart Area, Gomes Area, Eyelash Area, and Xenopsaris Area.
The Purple Heart and Rodriguez pits are two extensive shallow artisanal workings on the main Arakaka Trend target area.
Reconnaissance drilling at Arakaka
The company reported that the previous reconnaissance drilling had demonstrated the Purple Heart and Central structures to be a strongly mineralised for more than 3.2km of extent within the 12km long Arakaka Main Trend and consisting of stacked mineralised structural horizons.
Some of the previous significant intercepts from the reconnaissance drilling at the target includes 13.5 m @ 7.36 g/t gold from 87m; 1.9 m @ 30.66 g/t gold from 86m; 10.8 m @ 1.66 g/t gold from 17m; 10 m @ 3.10 g/t gold from surface; 48 m @ 1.84 g/t gold from surface; and 20.5 m @ 1.43 g/t gold from 65m.
New follow up Diamond Drilling
Alicanto has announced that it has commenced 12,000m of follow up Diamond Drilling which will close the drill spacing to 80m x 80m and is fully funded through its Earn-In-Arrangement with Nordgold.
The company said that four stacked, sub-parallel, low dipping mineralised gold zones across 3200 metres strike will be initially targeted.
Terms of earn-in agreement with Nordgold
The company had inked an earn-in agreement with Nordgold whereby Alicanto granted Nordgold the exclusive right to acquire a 100% interest in the Arakaka Gold Project.
As per the terms, Nordgold would sole fund US$3 million in exploration expenditure within a one year earn-in period, and at completion of the earn-in period, pay an additional US$5 million to Alicanto as an “Earn-in Right”.
The agreement states that Alicanto would continue to operate the project during the first 12 months, and the drilling campaign would commence as soon as practicable with Nordgold required to spend a minimum of US$1.5 million.
In case Nordgold terminates the agreement and ceases to make contributions at any time during the earn-in period the company will forfeit all rights and interests to the Arakaka Gold Project
Projects in Sweden
AQI’s projects in Sweden includes Oxberg and Naverberg Projects. These projects are located within the prolific Bergslagen Mining District of southern Sweden, host to the world class Garpenberg and Zinkgruvan deposits.
The Naverberg project is immediately along strike from the Falun Mine, closed in 1992; while the Oxberg project lies within the same geological setting 15km to the north-west. The tenements are logistically well serviced by the town of Falun and existing infrastructure.
Updates on the VMS projects
The company announced that the recent shareholder approval to purchase prime position within the famous Sweden-Bergslagen mining district with major targets along 45 km of high-grade prospective strike on mineralised horizon coincident with large scale VMS (Volcanogenic Massive Sulphide) alteration systems.
The company said that it will be commencing drill testing of multiple high-grade VMS drill targets in the coming weeks.
Alicanto reported that Naverberg Project abuts the world class Falun mine (28Mt @ 4.0% Cu, 5.0% Zn, 2% Pb, 35g/t Ag & 4.0g/t Au) and includes in its tenure the high-grade Skyttgruvan mine (38% Zn).
Meanwhile, Oxberg Project’s limited historical drilling includes 2.8 m @ 4.7% Zn, 2.2% Pb, 89 g/t Ag & 3.4 m @ 2.5% Zn, 1% Pb, 11 g/t Ag as well as multiple undrilled targets with rock chips of 11.9% Cu 9.4% Zn, 5.4% Pb and 16g/t Ag.
Alicanto’s CEO, Peter George said: “The drilling at Arakaka Guyana represents the first time there has been targeted diamond drilling on the prolific gold producing Arakaka Main Trend.
Previous reconnaissance drilling has highlighted a 3.2 kilometre corridor of stacked mineralized horizons with good geological continuity and significant gold intercepts for follow-up infill.
The Company is excited to have Nordgold partner into our Arakaka Project and this work will be fully funded through Alicanto’s Earn-In-Agreement with Nordgold.”