Gold enrichment on the Nevada property is hydrothermal and associated with a massive (200 metre by 400 metre) breccia body with vuggy silica alteration that has intruded dacitic volcanic rocks. This gold mineralization at Nevada is consistent with high sulphidation gold systems like Veladero, Pierina and Yanacocha and provides excellent potential for Capella as a near surface gold-copper deposit.
Exploration work completed by Capella on the Nevada property includes an historical compilation, Induced Polarization ("IP") and Ground Magnetic surveys (2008), a detailed multi-spectral remote sensing study (2009), trench sampling (2009) and diamond drilling (2009). Results from the IP and Magnetic surveys outlined a half kilometre-diameter circular magnetic high in the western area of the claims group, interpreted as an intrusive body. The results of the detailed remote sensing study established a two kilometre-diameter intensely altered zone to the immediate east of the magnetic high. This is the newly discovered high priorty target area at Nevada.
In 2009 Capella excavated and sampled two trenches (198 meters) on the Nevada property to test various surface alteration zones. Over half of the 17 samples collected in Trench #1 were anomalous for gold and all four samples collected in Trench #2 were anomalous.
Capella subsequently completed a four hole-910 meter diamond drilling program in 2009 to test a combination of magnetic and induced polarization "IP" geophysical anomalies coincident with intensely altered mineralized outcrops. The drilling intersected gold and copper mineralization with peak assay values of 0.61 g/t gold and 0.33% copper. Numerous zones of gold and copper mineralization were intersected in the drill holes with values for gold generally below 0.10 g/t and copper under 0.03%. Prior to further drilling at Nevada, the company intends to complete significant road building and trenching during the 2010 season to test several areas of interest generated by hyper spectral remote sensing, geophysical data and the results from the 2009 drill campaign.
Previous to Capella's ownership, Mineral Mount ISA Chile S.A. ("MMICSA") controlled the Nevada property until 1994 and subsequent to that Sociedad Marin Asesorias Geologicas Mineras Ltda. ("SMAGML") held mineral title. Historical exploration work completed by SMAGML in 1988 included a surface sampling program resulting in the discovery of a silica-alunite altered zone on the eastern margin of the property that yielded 0.1 to 1.0 g/t gold and 1 to 4 g/t silver. J.C. Toro, 1991, reported the completion of three reverse circulation drill holes (486 metres) in 1990 and gold values as high as 6.4 g/t gold. In 1994 MMICSA collected 13 outcrop samples which yielded values up to 10.32 g/t gold and 51.0 g/t silver. No mineral resource has been estimated to date.
Nevada Property Reverse Circulation Drilling Highlights (from Toro, J.C., 1991)
| Drill Hole | Depth (m) | Mineralization Intervals (True Width Unknown) |
Description |
|---|---|---|---|
| DDH-T-1 | 119 | 16.8m @ 0.08 g/t Au | Manto |
| DDH-T-2 | 124 | 8.0m @ 0.30 g/t Au 4 g/t Ag | Manto |
| 10.0m @ 0.37 g/t Au 2 g/t Ag | Manto | ||
| 2.0m @ 1.30 g/t Au 1 g/t Ag | Vein | ||
| DDH-T-3 | 243 | 16m @ 0.40 g/t Au 3 g/t Ag | |
| 10.0m @ 1.57 g/t Au 62 g/t Ag (including 2m @ 6.4 g/t Au 76 g/t Ag) |
|||
| 10.0m @ 0.30 g/t Au 52 g/t Ag | |||
| Total | 486 | Note Manto - mineralized bed or layer |