Jul 15 - 21, 1996 Volume 82 Number 20 - 0 comments

STOCK MARKETS -- Metals, TSE enjoy a steady week

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The Toronto Stock Exchange managed a late recovery to close fractionally higher over the report period ended July 9, with the TSE 300 composite index posting a gain of 2.75 points (0.05%) on the week.
Also active was Arequipa Resources, which saw nearly 5 million of its shares traded. The stock closed at $20.20, up $3.20 from the previous week. Arequipa is halfway through a 5,000-metre reverse-circulation drill program on its Peirina gold property in Peru. Drilling problems that spooked the market in early June are said to be mostly resolved, with all but one of the latest holes having reached their intended depths.

Jul 15 - 21, 1996 Volume 82 Number 20 - 0 comments

Arequipa Res. advances Pierina property

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By: Rob Robertson

With three rigs turning on the Pierina gold property in north-central Peru, Arequipa Resources (AQP-T) is half-finished a program consisting of 5,000 metres of reverse-circulation (RC) and diamond drilling. Drilling problems, which spooked the market in early June, are said to be mostly resolved, with all but one of the latest holes having reached their intended depths.
The Vancouver-based junior is drilling a 267,000-sq.-metre anomaly with 100-by-100-metre, vertically spaced holes.
The first hole of the program returned 88 metres grading 6.58 grams gold and 130 grams silver (including 32 metres of 11.2 grams gold). The mineralized interval was cut by a fault at a depth of 94 metres.
Mapping suggests the lower part of the system may be faulted off to the southwest.
The second hole, collared 140 metres southeast of the first, returned 7.5 grams gold and 184 grams silver over 43 metres (including 8 metres of 19.43 grams gold) before being abandoned as a result of drilling problems. Arequipa intends to re-drill the hole to a depth of 200 metres.
The third diamond drill hole, collared 280 metres southeast of the second hole, tested the outer edge of the Pierina anomaly at a southeastern inclination of minus 65. The hole returned 88 metres of 2.02 grams gold (including a 30-metre intercept grading 5.16 grams), before passing into a fault zone. The total depth of the hole was 170 metres.
Adverse ground conditions led to the termination of the fourth diamond drill, at a depth of 56 metres. It was collared 140 metres southeast of the second diamond drill hole and averaged a grade of 2.12 grams gold and 38 grams silver over the entire length (including 36 metres grading 2.99 grams gold and 58 grams silver). The hole will be re-drilled to a depth of 200 metres.
The first RC hole was drilled 100 metres south of the first diamond drill hole and returned 52 metres averaging 4.3 grams gold (including 16 metres grading 7.08 grams). Arequipa intends to re-drill the hole to a depth of 200 metres.
The second RC hole was drilled outside of the Pierina anomaly, 100 metres south of the first RC hole. Abandoned at a 23-metre depth, owing to drilling problems, the hole averaged 1.49 grams gold (including an interval grading 2.14 grams over 14 metres). The hole is scheduled to be re-drilled.
The third RC hole was also drilled outside of the anomaly boundary, about 400 metres south of the second diamond drill hole. A 16-metre interval grading 0.44 gram gold was encountered before the hole was terminated at a depth of 73 metres, again as a result of drilling problems.
About 100 metres east of the second diamond drill hole, Arequipa drilled the fourth RC hole, to a total depth of 208 metres. Starting from surface, a 48-metre interval averaged 2.69 grams gold (including 34 metres grading 3.65 grams) before mineralization was cut off by a fault.
The fifth RC hole was drilled 100 metres south of the second diamond drill hole, to a depth of 212 metres. The first 107 metres averaged 5.98 grams gold (including 38 metres grading 9.03 grams). Assays are pending for the interval between 108 and 136 metres, which was also strongly silicified.
Silver assays for several of the holes are pending, as well.
Meanwhile, Arequipa has driven two tunnels into the high-grade area of the hillside. The first tunnel was stopped in high-grade mineralization at a length of 147 metres, over which it averaged a grade of 6.82 grams gold and 173 grams silver from 3 to 147 metres.
Underground development will be carried out from the tunnel and will include a 49-metre raise. This will be driven to surface as a comparison analysis to twinned RC and diamond drill holes. Two crosscuts will also be driven, to the west and to the east, and a bulk sample will be collected for further metallurgical testwork.
The second tunnel is about 200 metres south and slightly east of the first tunnel, and is continuing in mineralization at a present length of 72 metres.
>From assays received to date, the tunnel averages 7.72 grams gold and 208 grams silver over a 52-metre length, beginning at 6 metres.
Immediately following the completion of the first phase of drilling, a second phase will begin, consisting of 10,000 metres of more closely spaced holes.