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Wednesday, 30th January 2008 (4200 views)

Two diamond drill holes at the Limon Mine in Nicaragua have intersected zones of "significant" gold mineralisation, the company behind the project has announced.

Central Sun Mining said the holes, which are the first to be drilled as part of a planned 10,000-metre programme, had intersected an approximately 15-metre wide zone of epithermal quartz vein breccia.

The discovery is located around 160 metres below current mining activities at the Santa Pancha mine.

Dr Bill Pearson, Central Sun's executive vice-president for exploration, said the results indicated there was a "major structure" at the Limon Mine, which is located in north-west Nicaragua approximately 62 miles from the capital, Managua.

"The additional planned holes will further test this potential," he said.

The company added that Limon Mine is currently in meeting production targets, with 6,496 ounces of gold produced in November and December 2007. Overall, the mine is expected to yield 45,000 gold ounces in 2008, increasing to 50,000 ounces in 2009.

Mining has been going on around Limon since 1851 and since mine production began in 1941, it has produced around 2.7 million ounces of gold.

 

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