… indicating outstanding growth potential
CANADIAN Mining Company, Stronghold Metals Inc., has reported that its exploration activities on Eagle Mountain, Region 8 (Potaro/Siparuni), in 2011, have uncovered high-grade gold zones which indicate   outstanding growth potential and these will be vigorously pursued in 2012.
Eagle Mountain lies five kilometres north of Mahdia.
Stronghold said that its exploratory work on Eagle Mountain had identified multiple gold-bearing zones,  including the Millionaire and Kilroy Zones, “which appear to be stacked on each other”, and Zion Zone, located topographically higher up the mountain than the other two.
The company disclosed that it had completed 78 new drill holes in 2011, and the results showed gold values ranging from 0.97 grammes per tonne gold to as high as 118 grammes per tonne gold.
Drill hole EMD 11-76 intercepted gold at 24.19 metres with a grade of 9.1 grammes per tonne; EMD 11-77 intercepted gold at 42.2 metres at 0.97 grammes per tonne; EMD 11.83 intercepted gold at 19.05 metres grading at 3.13 grammes per tonne; and significantly also EMD 11.85 intercepted at 7.3 metres gold graded at 30 grammes per tone, including an intercept at 1.8 metres at 118.4 grammes per tonne.
Significantly, the company said, the average gold grade for productive systems in open-pit mining in the Guiana Shield region is known to be between 0.8 and 1.5 grammes per tonne gold.
At Eagle Mountain, it said, the combined resource estimate totalling 18 million tonnes of materials with an inferred grading of 1.27 grammes per tonne gold adds up to 733,500 ounces of gold, with a cut-off point of 0.5 grammes per tonne gold.
Additionally, Stronghold reported some 250,000 ounces of the known gold reserves on Eagle Mountain are near surface, which indicates low-cost, open-pit mining potential and lower processing costs.
The company is now in the process of analyzing both the historical and 2011 drilling data with specific drill goals for drilling in 2012.
Work this year will include expanding the inferred mineral resources by drilling infill and step-out holes at a cross strike in three directions.
Stronghold will upgrade the inferred mineral resources to indicated mineral resources, and will update its NI 43-101 mineral resource estimate, complete  metallurgical and environmental studies, and commence Preliminary Economic Assessment (PEA) for the project, this in the first quarter of 2012.
Adherence to NI 43-101 is required by law in the disclosure of findings of gold and other precious metals to the public.
The company will also commence phase 1 drilling on 8,000 hectares of lands acquired from Mowasi Gold in 2011.
Stronghold Metals Inc. made a deal in 2010 to purchase the Eagle Mountain property from Omai Gold Mines Limited and Eagle Mountain Gold Inc., affiliates of IAMGOLD Corporation.
Earlier this week, the company announced an amendment to the Eagle Mountain agreement with the affiliates of IAMGOLD, giving it a clear path towards acquiring 100% of the Eagle Mountain property.