A total of 3,682.5 metres in 16 drill holes have been cored to date by
the first drill rig. Spaced approximately 50 metres apart, the drill holes
extend in a southwesterly direction testing the continuity and extension
of the mineralized structures mapped on surface and intersected by the
2010 drill program. The strike length of the two main mineralized zones -
San Albino and Arras - has now been extended to 550 metres. Both zones
remain open along strike and at depth. A further three holes are planned
in the first fence, for a total of 19 drill holes. Initially, the first
fence was to comprise 9 Diamond drill holes but was continued along strike
due to the continuing interception of potentially ore grade
mineralization.
Five holes were extended to depth to successfully test the Arras zone,
thus confirming the down-dip extension of that vein and indicating
continuity along strike of at least 335 metres. Arras, one of several
parallel mineralized structures, underlies the San Albino zone and
originates approximately 400 metres to the east.
In all, a series of 6 fences of drill holes are planned for the Phase I
infill Diamond drill program which will consist of up to 10,000 metres of
definition drilling. The Company intends to further extend the mineralized
area, refine the geological model and obtain sufficient data to calculate
a NI 43-101 compliant mineral resource for San Albino/Arras. The addition
of the second drill rig will assist in expediting the infill drill
program.
San Albino/Arras represents approximately a 2 square kilometre area
within the highly prospective Southern (San Albino) District of the
Property, which covers roughly 24 square kilometres. The San Albino Mine
area flanks the northwestern edge of a structural corridor, approximately
3 kilometres wide by 15 kilometres long, which spans the entire Property.
Old workings and showings exist throughout the corridor. The Central and
Northern Districts of the Property have yet to be tested by drilling.
Quality Assurance
The Company has implemented a rigorous QA/QC program using best
industry practices, involving insertion of appropriate blanks and
duplicates. All drill holes are sampled on at most a 1.0 metre interval
within the mineralized zones, with drill core split on site and one half
then being transported to the Inspectorate America Corporation
("Inspectorate"), a certified USA based laboratory (UKAS, NAMAS, STERLAB,
ISO 17025), preparation facility in Managua. The samples are then
transferred to Inspectorate's analytical laboratory in Richmond, British
Columbia, Canada. Duplicate samples have also been sent to Acme Analytical
Laboratories Ltd. in Vancouver, British Columbia, Canada, for comparative
analysis.
Qualified Person
John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined
under NI 43-101) has read and approved the technical information contained
in this news release.
On behalf of the Board,
Kim Evans, CGA, President & CEO
