The Lajitas Project is strategically located on a belt that is known to host more than 43 million ounces of gold and is proximal to Teck Cominco's Marte-Lobo Mine as well as stellar projects like Andina Mineral's Volcan Project and Exeter Resource's Caspiche Project. Andina reported the Volcan deposit contains 6.62M oz Au (measured and indicated categories) and 3.28M oz Au (inferred category) in October 2008. Deposits in the Maricunga district are predominantly porphyry gold stockwork systems (+/- copper) and are contained within advanced argillic alteration zones that locally host high-sulphidation epithermal gold deposits.
Alteration and mineralization at Lajitas measure approximately 2 kilometres square and Capella's Lajitas deposit model is similar to that seen at the Volcan and Caspiche projects. Gold mineralization at Lajitas occurs in both the quartz stockwork contained within the porphyry and in zones of argillic alteration associated with the intrusive. Capella's deposit model for Lajitas clearly depicts an association between argillic alteration and gold mineralization.
Exploration work completed by Capella on the Lajitas property includes an historical compilation, Reverse Circulation ("RC") drilling, Ground Magnetic and Induced Polarization ("IP") surveys, a detailed remote sensing analysis and 3D modeling. In addition to the area in the northwest portion of the claims group where an historic resource estimation was completed, Capella's recent geophysical results have outlined a 2 kilometre-diameter anomaly; the new target area at Lajitas. A magnetic high correlates to a moderate resistivity and elevated chargeability, mapping an intrusive surrounded by IP resistivity lows interpreted as zones of argillic alteration.
In March, 2008 Capella commenced a Phase I-4,000 metre drill program to test the 2 kilometre-diameter geophysical anomaly. Drilling was temporarily suspended in June 2008 due to winter weather conditions and recently recommenced in October, 2008. The Phase I drilling will test the IP chargeability anomaly across the mapped intrusive and the surrounding resistivity lows interpreted as zones of alteration. Results are pending.
In 2006, Capella drilled seven verification RC drill holes (1709m) in the area of the historic resource estimation. Intersections of particular note from the RC drilling include 192 metres @ 0.72 g/t gold (LJ06007), 116 metres @ 0.88 g/t gold (LJ06001r) and 92 metres @ 0.95 g/t gold (LJ06002r).
Lajitas Property RC Drilling Highlights, Capella 2006
| Drill Hole | From (m) | To (m) | Width (m)* | Grade Au (g/t) | Comment |
|---|---|---|---|---|---|
| LJ06001r | 0 98 166 |
10 158 282 |
10 60 116 |
1.24 0.40 0.88 |
Including 2m @ 3.82 g/t |
| LJ06002r | 142 276 |
234 282 |
92 6 |
0.95 0.63 |
Hole ended in mineralization |
| LJ06003r | 156 206 |
176 220 |
20 14 |
0.53 0.62 |
|
| LJ06004r | 98 | 170 | 72 | 0.70 | |
| LJ06005r | 158 298 |
216 300 |
58 2 |
0.63 2.38 |
Hole ended in mineralization |
| LJ06006r | 70 | 148 | 78 | 0.60 | |
| LJ06007r | 0 | 192 | 192 | 0.72 |
The 2006 drill program identified a significant area of gold mineralization on the northwest corner of the geophysical anomaly with mineralization open to the south and east. Company geologists believe that the geophysical anomaly represents a porphyry gold/copper system in the subsurface.
Previous exploration on the Lajitas property includes 1700 metres of bulldozer trenching and 14 reverse circulation drill holes (2574 metres) completed in 1996 by Minera Santa Fe Pacific Chile Ldta. ("MSFPC"). Trenching identified a 50 to 70 metre wide mineralized zone grading 0.8 g/t gold and five of the drill holes were mineralized with intervals up to 50 metres wide averaging up to 1.32 g/t gold. Subsequently in 1997 MSFPC estimated an "indicated" mineral resource estimate of 348,000 ounces of gold.
Vetting of this resource by Capella in 2006 determined a significant resource to be definitively present in terms of tenor but overstated in apparent tonnage. Notwithstanding the downgrading, the gold resource continues to be significant as it proves ore forming processes were active in a substantial way on the Lajitas Project. The Lajitas resource could become economically viable through either the addition of more tonnage and/or higher grades, or potentially through new discovery on the property. Subsequent geophysical work points towards highly encouraging targets.