FDG Mining begins drilling at Nicaraguan concession

11 December 2011 (Last Updated December 11th, 2011 18:30)

Canadian based FDG Mining has begun the first phase of the drilling programme on its Topacio concession located in east central Nicaragua.

Canadian based FDG Mining has begun the first phase of the drilling programme on its Topacio concession located in east central Nicaragua.

The 100%-controlled Topacio Project covers an area of 9,300ha, which includes multiple low sulphidation and epithermal quartz-sericite veins carrying gold-silver mineralization.

In the first initial drilling programme, the company will undertake approximately 1,800m of diamond drilling in 13 drill holes.

The drilling programme will concentrate on the Topacio vein which hosts the National Instrument (NI) 43-101inferred resource.

The company said that the prospect includes NI43-101 compliant inferred resource of 680,000t grading 5.2g/t gold and 34g/t silver.

The current drilling work is designed to increase the resource by confirming results from historical drilling and improving recovery, testing the resource where it remains open at depth and resource along strike.

The firm will drill three holes in line with the previous drilling programme conducted by Triton Mining in 1996. Triton experienced uneven core improvements through the quartz vein and associated quartz stock work host.

By drilling these holes, FDG obtains better core recovery, and a more accurate gold grade and ore thickness in the inferred resource. Five of the 13 holes will be drilled to cut gold-silver mineralisation that remains open at depth.

The last five drill holes of the programme will test the area south-west of and along strike from the resource, where trench results from FT11-015 and 016 include 2m of 2.5g/t gold.

A second phase of drilling is being planned to test gold-silver mineralisation in vein systems outside of the inferred resource.

NI 43-101 is a mineral resource classification scheme used for the public disclosure of information relating to mineral properties in Canada.