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.

Palamina Corp. (TSXV:PA) has launched two drilling campaigns in the Puno Orogenic Gold Belt (POGB), located in southeastern Peru. This gold belt is one of the least explored of its kind in the world, stretching across approximately 1,900 square kilometers. The company is advancing its own Usicayos Gold Project and participating in a second drilling initiative at Winshear Gold Corp.’s Gaban Project.

Palamina’s primary focus is on its Usicayos Gold Project, where it has six distinct exploration projects. The current drilling program, set for a total of 3,000 meters, is nearing its halfway mark. So far, the company has completed three diamond drill holes in the SDO East Zone. Drilling has also begun in the SDO South Zone, with the fourth hole complete and the fifth hole underway. These efforts aim to locate the potential bedrock source of gold in the Madre de Dios basin’s alluvial goldfields, situated to the north of POGB.

At the same time, Palamina is involved in another drilling campaign through its 15.4% stake in Winshear Gold Corp. Winshear has initiated its first drilling program at the Gaban Project’s Coritiri zone. This campaign, covering a distance of 1,600 meters, marks Winshear’s inaugural drilling efforts in the POGB. Palamina previously owned the Gaban Project before selling it to Winshear. As part of the sale, Palamina retains a 2% Net Smelter Return (NSR) royalty on the project, allowing them to potentially benefit from future production.

The POGB, where both projects are located, has gained renewed interest since the construction of the Intercontinental Highway in 2008, which improved road access to this remote area. This has led to a modern-day gold rush in the Madre de Dios region. Much of the gold mining in this region has been carried out by artisanal and small-scale miners, whose operations are generally restricted to depths of 50 to 100 meters due to operational limitations. However, mineralized orogenic gold systems in the POGB are known to extend to depths exceeding 1,000 meters. This suggests a potentially untapped gold resource in the region, one that Palamina and Winshear hope to explore with these drilling campaigns.

These two drilling programs represent significant efforts to explore and assess the mineral potential within the POGB. Both Palamina and Winshear aim to identify the primary bedrock source of gold that has fed the alluvial goldfields to the north. If successful, these campaigns could open up further opportunities for gold mining in the region and attract more investment to this underexplored area.

Palamina’s projects have benefited from historical and current mining activities in the region, as previous artisanal mining operations have provided partial ground-truthing. Artisanal miners have long exploited gold in the POGB, particularly near the surface, which has offered preliminary insights into the gold-bearing potential of this belt. Palamina is building on this groundwork with its more sophisticated and technically advanced exploration methods.