Camino Minerals (COR.V) has now confirmed the copper mineralization on the Adriana zone of the Los Chapitos project is now in excess of a kilometer long, as the assay results of four new drill holes confirm the existence of more copper mineralization. All four holes did intercept the Diva structure (which Camino thinks is the feeder zone for the Adriana mineralization), and although the intervals are pretty short and the mineralization is located pretty deep, the company appears to be very encouraged.
We are still on the fences. We realize these are the results from a step-out drill program and this shouldn’t set the expectations too high, the intervals in holes 59, 61 and 62 appear to be too deep and too narrow to be economic (unless, of course, these zones would be part of a large open pit operation, and would have been considered to be waste anyway). On top of that, the total percentage (and ratio) of soluble copper is also much lower, indicating the flow sheet might be challenging.
Stepping out to figure out the extent of the mineralization is good, but the real value at Los Chapitos will have to come from the oxide zones. Metallurgical test work is underway, and Camino will be able to report the results of bottle roll and column leach tests next quarter.
It looks like Camino also wants to seduce investors with the acquisition of a new gold project. The company has entered into an agreement with Compania Minera Villa Hermosa to buy a 100% interest in the 400 hectares Villa Hermosa gold project. This appears to be a small-scale operation where artisanal miners have been shipping 20 tonnes of rock per month at an average grade of 40-125 g/t gold. This material was mined from 4 different veins with an average width of 60 centimeters.
As part of its due diligence process, Camino took some samples from the veins, which returned average gold values of 28.9 g/t gold, whilst the stockwork yielded a result of 4.2 g/t gold. Enough sniffs of gold for Camino to get in and get some work done, and the company is currently designing a sampling and trenching program.
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The author has a small long position in Camino Minerals. Please read the disclaimer
