More gold, silver from Bicol prospect

Australian firm Sierra Mining Ltd. reported further encouraging results from drilling activities at its Mabilo prospect in Camarines Norte, this time with samples showing 4.35 grams of gold per ton of ore.

The samples coming from just 27 meters below ground surface also yielded 11.1 grams of silver per ton as well as 11-percent copper and 37-percent iron.

This follows much-touted initial results of the current second-phase drilling, which hinted that the area may contain greater amounts of copper, gold, iron and silver than were previously thought.

Results from October showed mineralization at 53 meters deep containing 5.31 grams of gold and 11 grams of silver per ton of material as well as 3-percent copper and 52-percent iron.

Back then, Sierra said the results “substantially increase the extent of known mineralization” at Mabilo.

“The gold grade is significantly higher than recorded in any previous intersection of the magnetite skarn at Mabilo,” Sierra added.

The Mabilo project covers a 500-hectare area where several mineralization of magnetite skarn—rocks that contain mineable amounts of metallic minerals—had been identified.

Earlier, Sierra said its Philippine partner—Mt. Labo Exploration and Development Corp.—was finalizing plans to start an exploration drilling program in Camarines Norte after the latter secured an exploration permit last July.

Mt. Labo obtained Exploration Permit No. 014-2013-V issued by the Mines and Geosciences Bureau for the Mabilo project at the Paracale mineral district.

Mt. Labo is said to have discovered late in 2012 two areas with high-grade mineralization of copper, gold and silver as a result of a drilling training program, which was done based on a ground survey that the previous owner of the Mabilo property conducted.

Following the October results, Sierra said it was working for the extension of a joint-venture agreement (JVA) with a drilling contractor to bring drilling activities to the Mabilo prospect.

The company has signed a memorandum of understanding with Galeo Equipment and Mining Co. Inc., which draws out details amending an existing JVA. Under the agreement, Galeo is committed to drill for samples from Mabilo at up to 200 meters deep to earn a 36-percent interest in Camarines Norte projects.