Caza Gold Corp. announces that the Company has initiated the 2014 exploration program at the Los Andes and Pochote properties in Nicaragua. The Company is planning a large airborne geophysical survey and a drilling program which will test 2 of the highest priority gold targets.
Plans are underway to complete a geophysical survey along a 12 kilometer long trend of continuous alteration within the Los Andes and Pochote claims, followed by a drilling program to test two gold targets not previously drill tested during the 2012 Pedregal program. The upcoming drilling will test the Quisaltepe and San Francisco gold zones. Access agreements have been obtained for the San Francisco area and drill access road construction is underway. Negotiations for access in the Quisaltepe area are being finalized. The drilling program is expected to begin, pending contractor scheduling, by April and is planned to complete approximately 10 to 15 holes each 200 to 250 meters deep. A dedicated budget of approximately CDN$1.3 million has been set aside from the proceeds of the December 2013 CDN$2.5 million financing to execute the exploration program.
The Company has contracted Aeroquest Airborne to complete the helicopter based geophysical survey which will cover approximately 36 square kilometers over the Pedregal, Quisaltepe and San Francisco gold targets acquiring versatile time domain electromagnetic (VTEM) and magnetic data along approximately 530 line kilometers at 100 meter line spacing. The survey is scheduled to begin in March pending the importation of the survey equipment and final scheduling of personnel and equipment. Geophysical survey results in conjunction with geochemical results, structural and alteration mapping will further define the drilling locations.
The VTEM and magnetic data are targeting the conductive massive sulfide horizons and the resistive silicified zones associated with large faults and possible areas of gold mineralization. The magnetic portion of the survey will provide additional information identifying the fault zones and deeper porphyry style mineralization and intrusive bodies. The survey will cover the Pedregal area, drilled in 2012, which intersected thick horizons of sulfide mineralization and strongly silicified zones with elevated but sub- economic gold concentrations (refer to Nov. 29, 2012 news release for details) and along the 10 kilometer trend to the San Francisco target at the south end of the zone.
Los Andes High Sulfidation Gold Property, Nicaragua
The Los Andes Property is located approximately 1 hour east of Managua on Highway 7 with excellent access. The property covers approximately 6,575 hectares and is strategically located within the Central Nicaragua Gold Belt between the El Limon and La Libertad Mines of B2 Gold.
The Los Andes property is a high-sulfidation style of gold mineralization. High-sulfidation gold systems host some of the largest gold deposits in the world with examples such as Yanacocha and Pierina in Peru. Favorable alteration and mineralization has been traced along the regional northeast trending Los Andes structure for at least 11 km on the Los Andes property. The extensive alteration system is exposed on the surface and consists of very strong silicification associated with zoned alteration from higher temperature advanced argillic zones surrounded by successively lower temperature argillic, and propyllitic alteration. The alteration is associated with anomalous values of gold, silver, and highly anomalous levels of indicator metals such as bismuth, tellurium, selenium, arsenic, antimony, and mercury.