Palamina Corp. (TSXV:PA) has provided an update on its ongoing drilling operations at the Usicayos gold project, located in southeastern Peru, specifically within the Sol De Oro Zone (SDO). The company has completed six drill holes in two key areas of SDO: Sol De Oro East (SDO E) and Sol De Oro South (SDO S), with more drilling planned at Sol De Oro North (SDO N).

Andrew Thomson, President of Palamina commented in a press release: “Palamina’s inaugural drill program in the Sol de Oro zone targeted the north and south ends of an interpreted flower structure, as well as the eastern zone between them. Drilling at SDO East revealed extensive mineralization, with gold grades increasing toward the north. At SDO South, we intercepted both mineralized shales and a new mineralized intrusion, with visible gold intercepts noted in holes USI24-04 and USI24-05. The drill is now being relocated to SDO North to explore the northern end of the flower structure.”

The company’s initial drilling phase marks a significant step forward in understanding the potential gold deposits at Usicayos. Palamina has focused on a substantial shear structure within the Sol De Oro Zone, which measures about 1.5 kilometers in width and extends 2.2 kilometers in length. Mineralized zones follow the path of deformation zones, characterized by dense quartz veining aligned with the region’s geological fabric. These zones, referred to as “mantos,” dip north and south toward a prominent fault that exhibits a “flower structure” pattern, a feature known to host significant mineral deposits.

In total, Palamina has completed 1,685 meters of diamond drilling, splitting its efforts equally between SDO East and SDO South, with three drill holes in each area. The drill rig will soon be relocated to Sol De Oro North, where two additional holes are scheduled.

Progress at Sol De Oro East (SDO E)

At SDO E, Palamina has identified four surface-level mantos that stretch over an 800-meter length and trend from north to south. Prior sampling indicated the presence of gold-rich quartz veins within these thick shear zones. The drilling campaign aimed to confirm the mineralization and refine the geological model.

Drill hole US124-01 penetrated Manto 1 at a depth of 23 meters and reached Manto 2 at 161 meters. The shearing in both zones was notable, featuring intense foliation and clear signs of ductile deformation within metamorphosed carbonaceous shale. While Manto 1 presented fewer quartz veins than anticipated, Manto 2 appeared deeper than expected. This discrepancy suggests that the zone might have experienced significant folding or displacement due to late-stage faulting. The second and third drill holes, US124-02 and US124-03, managed to intercept Manto 1 but fell short of reaching Manto 2 due to operational challenges, which forced the team to abandon drilling before hitting the target depth.

The remaining mantos, numbered 3 and 4, are yet to be tested, leaving potential for additional mineralization. Palamina is awaiting assay results to better evaluate the resource potential at SDO E.

Developments at Sol De Oro South (SDO S)

Drilling at SDO S was aimed at exploring the extensions of known gold-bearing quartz veins. This area had previously yielded promising surface and underground sampling results, with one trench showing gold grades of up to 3.4 grams per tonne over 14 meters, and a selected underground sample revealing a high-grade interval of 153 grams per tonne gold over one meter.

One of the most significant outcomes at SDO S came from drill hole US124-04, which intercepted visible gold between 100 and 150 meters. The gold appeared in quartz veins hosted within Devonian-age shale and was often accompanied by a stockwork of fine-scale pyrrhotite, pyrite, chalcopyrite, and arsenopyrite veins. At a depth of 113 meters, the drill encountered a blind microdiorite intrusion, further indicating the presence of mineralization. The visible gold findings were particularly noteworthy, appearing in two distinct quartz veins.

Two subsequent drill holes, USI24-05 and USI24-06, were drilled nearby. USI24-06, positioned 100 meters west of USI24-05, aimed to test the horizontal continuity of the sulfide-rich vein system. This area has demonstrated a strong correlation between the sulfide veins and magnetic responses detected in a drone-based magnetic survey conducted earlier in 2024. The survey revealed an ENE-WSW magnetic trend spanning over a kilometer, linking SDO West and potentially extending toward SDO East.

Figures released by Palamina show the magnetic analytical signal, highlighting the connections between the various zones and the sulfide-bearing structures. These results are crucial for understanding the broader geological framework and planning future exploration efforts.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.