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Friday, 26th January 2007 (3233 views)

Capella Resources has announced details from the phase one drilling programme on its project in northern Chile.

The Lajitas gold project, which is owned in its entirety by Capella Resources, has seen reverse-circulation drilling with significant intersections to gold mineralisation being made.

One highlight was a 192 metre long stretch with a grade of 0.72 grams of gold per tonne while another drill holes issued a result of 116 metres at 0.88 grams of gold per tonne.

The reason being Capella Resources' insistence to undertake this programme was to confirm the presence of a gold resource which was first outlined in 1995 by Minera Santa Fe Pacific Limited.

The initial resource estimate was 348,000 ounces of gold after a survey of 14 drill holes but the work in 2006 intersected significant zones of gold mineralisation which expanded on the original resource estimate.

Capella Resources is a junior exploration company on the search for a new project within its South Dakota Homestake mine.

It already has the appropriate permits for drilling to begin in February 2007.

 

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