🕐25.01.10 - 01:06 Uhr

Laguna Resources [ASX: LRC] - Initial drilling results at Arqueros Gold Project



LAGUNA RESOURCES NL
ASX Release
Monday 25 January 2010
LAGUNA RESOURCES NL
ABN 36 008 460 366
Level 1 / 33 Richardson Street
WEST PERTH WA 6005
Australia
Tel: +61 8 9200 6280
Fax: +61 8 9200 4469
Contact:
Nick Lindsay
(Managing Director)
E-mail:
Directors / Officers:
Matthew Wood
Nicholas Lindsay
Jonathan Murray
Scott Funston
Issued Capital:
Approximately 1,101 million shares
ASX Symbol: LRC
Media:
Fortbridge +612 9331 0655
Bill Kemmery 0400 122 449
Website:
www.lagunaresources.com
INITIAL DRILLING RESULTS ARQUEROS GOLD PROJECT
The Company is extremely pleased to release initial RC drilling results from its 100% owned Arqueros Gold Project which is located in the World Class Maricunga Gold Belt of Chile.

These results include an exceptional drill intersect of:
111 metres at 1.23 g/t gold equivalent from 67 metres in AR09-09.
Better results in gold equivalents (AuEQ60) from Arqueros South Deposit include:
AR09-03 12 metres at 2.7 g/t gold equivalent
AR09-05 13 metres at 3.5 g/t gold equivalent
including 4 metres at 7.1 g/t gold equivalent
AR09-06 3 metres at 3.9 g/t gold equivalent
AR09-07 6 metres at 3.1 g/t gold equivalent
AR09-10 6 metres at 3.8 g/t gold equivalent
AR09-12 2 metres at 6.6 g/t gold equivalent
AR09-16 3 metres at 7.3 g/t gold equivalent
AR09-24 5 metres at 4.9 g/t gold equivalent
Better results in gold equivalents (AuEQ60) from the Arqueros North Deposit include:
AR09-21 36 metres at 1.2 g/t gold equivalent
AR09-22 28 metres at 1.2 g/t gold equivalent
The drilling programme commenced in late November 2009 and to date has completed approximately 6,500 metres of RC drilling in 30 holes.

The Company currently has two drilling rigs operating on site.

This programme is designed to delineate known mineralisation, verify the results of historical underground drilling and extend the current resource base.
Drilling from surface has demonstrated the continuity of grade and extent of the silver domain and reconciliation with the large historical database has already commenced and is making considerable positive progress.
Not all gold targets outlined by the Company have been able to be adequately tested by surface drilling and a programme of underground drilling has been initiated specifically to address these gold targets.

Work has commenced on preparing for this 1,500 metre campaign, which will be completed before the onset
Outcrop mapping
RC drilling at Arqueros Sur
Diamond drilling at Arqueros Sur (geotechnical study)
of winter.
Reverse circulation drilling at the Arqueros Gold Project continues with the focus on testing for extensions of the mineralised zone and the verification of historical data for an upgrade of the current JORC resource.

Surface drilling will also test for a fault offset block to the west of the Arqueros South Deposit at depth.
Initial assay results and drilling data from the Arqueros Gold Project are presented below in table format.
The Arqueros Gold Project:

Drilling well underway with exceptional results being generated.

Company to soon have three drilling rigs operating on site.

Mine studies, including mine design / resource-reserve / environmental / geotechnical / hydrological and mine permitting have all commenced and are progressing well.

Arqueros was mined from 2000 to 2004 with approximately 278,000 ounces of gold equivalent extracted at an average gold equivalent grade (AuEQ60) of 7.1 g/t gold.

JORC Inferred Resource of 783,000 oz gold equivalent at 1.5 g/t gold equivalent.

(0.5 g/t gold equivalent cut off grade) announced on 4 November 2009.

Gold and silver mineralisation at Arqueros is located 20 kilometres north of the producing Kinross Gold Corporation"s La Coipa Gold Mine (225,000 ounces per annum of gold equivalent produced in 2008).
Nick Lindsay
Managing Director
Dr Nicholas Lindsay is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Dr Lindsay is the Managing Director of Laguna Resources NL and consents to the inclusion in this release of the matters based on his information and information presented to him in the form and context in which it appears
The Company"s exploration target is 1 to 2 million gold equivalent ounces of potential gold-silver mineralisation grading between 1.5 and 2.0 g/t gold equivalents.

The potential quantity and grade is conceptual in nature.

There has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Logging diamond drill core at Arqueros
Driller preparing reverse circulation chips
Figure 1.

Completed reverse circulation drill holes at Arqueros
able 1.

Intersections: Arqueros Sur (details on Table 2)
T
Intersection, metres Gold Silver AuEQ60
D
m To Len
g/t
g/t
g/t
AR09-03
248
285
37
0.13
71
1.31
..

includes
262
274
12
0.20
151
2.71
AR09-05
248
261
13
0.02
206
3.45
..

includes
257
261
4
0.03
422
7.07
AR09-06
159
185
26
0.01
68
1.14
Includes
178
181
3
0.01
232
3.88
AR09-07
103
118
15
0
106
1.78
..

includes
103
109
6
0
184
3.09
AR09-08
130
139
9
.05
37
0.68
AR09-09
67
178
11
0.51
43
1.23
..

includes
96
107
12
2.44
127
4.56
..

includes
175
177
2
5.59
41
6.27
AR09-10
54
80
26
0.20
89
1.67
Includes
62
68
6
0.80
220
3.84
AR09-11
16
20
4
0.60
1
0.63
28
59
31
0.03
52
0.91
A
73
97
24
1.28
22
1.64
..

includes
95
97
2
6.34
14
6.56
AR09-16
40
58
18
2.76
4
2.83
..

includes
45
49
3
7.12
8
7.26
AR09-24
316
347
34
0.15
77
1.43
..

includes
339
344
5
0.10
286
4.86
ce (A
Q), w
which is calculated as the ratio of gold price to silver price * ratio of gold metallurgical recovery to silver metallurgical recovery.

EQ60 = PAu/PAg * RAu/RAg = 60, based on long-range prices of gold at US$800/oz & silver US$15/oz, and recoveries of gold at
80% respectively
Table 2.

Summary of results from reverse circulation holes drilled as of 20 January 2010; refer Figure 1.
Total
Collar coordinates, metres
Azimuth
Dip.
Intersection, metres
Grades, g/t
Drill Hole
ARQUEROS
Sector
Section
Metres
North
East
Elevation
(°)
(°)
From
To
Length
Gold
Silver
AuEQ60
AR09-01
SUR
N-900
330
7,050,900
482,070
4377
90
-80
Mineralisation absent or less than 0.5 g/t Au equivalent
AR09-02
SUR
N-1000
317
7,051,000
482,082
4365
90
-80
Mineralisation absent or less than 0.5 g/t Au equivalent
AR09-03
SUR
N-1100
380
7,051,100
482,077
4364
90
-70
248
285
37
0.13
71
1.31
includes
262
274
12
0.20
151
2.71
300
304
4
0.32
19
0.63
AR09-04
SUR
N-1100
235
7,051,100
482,200
4321
90
-70
Mineralisation absent or less than 0.5 g/t Au equivalent
AR09-05
SUR
N-1200
261
7,051,200
482,085
4350
90
-65
248
261
13
0.02
206
3.45
includes
257
261*
4
0.03
422
7.1
AR09-06
SUR
N-1400
224
7,051,405
482,190
4260
90
-63
159
185
26
0.01
52
0.87
includes
178
181
3
0.01
233
3.88
AR09-07
SUR
N-1400
126
7,051,400
482,435
4241
90
-70
103
118
15
0
106
1.78
includes
103
109
6
0
184
3.09
AR09-08
SUR
N-1500
180
7,051,492
482,220
4220
90
-60
130
139
9
0.05
37
0.68
AR09-09
SUR
N-1600
180
7,051,608
482,353
4192
90
-65
67
178
111
0.51
43
1.23
Includes
89
110
21
1.69
101
3.38
or
96
107
12
2.44
127
4.56
includes
175
177
2
5.59
41
6.27
AR09-10
SUR
N-1600
80
7,051,598
482,395
4190
90
-75
54
80
26
0.20
89
1.67
includes
62
68
6
0.10
220
3.84
AR09-11
SUR
N-1600
150
7,051,600
482,476
4166
90
-45
16
20
4
0.60
1.4
0.63
28
59
31
0.03
52
0.91
AR09-12
SUR
N-1700
97
7,051,682
482,320
4148
90
-63
73
97
24
1.28
22
1.64
includes
95
97*
2
6.34
14
6.56
AR09-14
NORTE
N-2000
105
7,052,005
482,322
4085
90
-60
2
9
7
0.66
3
0.71
58
66
8
0.66
3
0.72
Table continues on next page ...

Note: * Mineralisation not closed off
Table continued from previous page
Total
Collar coordinates, metres
Azimuth
Dip.
Intersection, metres
Grades, g/t
Drill Hole
ARQUEROS
Sector
Section
Metres
North
East
Elevation
(°)
(°)
From
To
Length
Gold
Silver
AuEQ60
AR09-15
NORTE
N-1900
250
7,051,905
482,297
4064
90
-60
2
4
2
0.52
4
0.59
141
142
1
0.62
7
0.74
235
236
1
0.28
31
0.80
AR09-16
SUR
N-1800
150
7,051,796
482,294
4078
90
-65
40
58
18
2.76
4
2.83
includes
45
49
3
7.12
8
7.26
109
112
3
0.63
9
0.80
AR09-17
NORTE
N-2100
37
7,052,137
482,428
4150
90
-65
Hole abandoned
AR09-18
NORTE
N-2100
160
7,052,137
482,422
4151
270
-65
88
98
10
0.57
15
0.82
AR09-19
NORTE
N-2200
110
7,052,223
482,440
4165
270
-65
68
74
7
0.26
22
0.63
AR09-20
NORTE
N-2200
80
7,052,221
482,439
4165
90
-70
38
55
17
0.25
42
0.96
AR09-21
NORTE
N-2300
150
7,052,288
482,463
4163
270
-65
36
72
36
0.27
55
1.18
97
100
3
0.16
50
1.00
AR09-22
NORTE
N-2300
150
7,052,289
482,470
4163
90
-60
34
62
28
0.02
70
1.19
includes
41
44
3
0.02
131
2.20
71
79
8
0.18
23
0.56
AR09-23
SUR
N-900
277
7,050,900
481,976
4410
90
-80
Mineralisation absent or less than 0.5 g/t Au equivalent
AR09-24
SUR
N-800
350
7,050,800
481,933
4433
90
-80
316
347
34
0.15
77
1.43
includes
339
344
5
0.10
286
4.86
AR09-25
SUR
N-700
338
7,050,700
481,940
4429
90
-85
307
314
7
0.11
42
0.81
AR09-26
SUR
N-600
362
7,050,600
482,452
4425
270
-65
Assay results pending
AR09-27
SUR
N-600
350
7,050,590
482,040
4392
270
-65
Assay results pending
AR09-28
SUR
N-500
400
7,050,496
481,987
4418
270
-65
Assay results pending
AR09-29
SUR
N-700
338
7,050,700
481,935
4429
270
-80
Assay results pending
AR09-30
SUR
N-800
311
7,505,800
482,018
4398
90
-80
Drill hole in progress
AR09-34
NORTE
N-2400
80
7,052,400
482,460
4148
90
-60
Assay results pending
AR09-35
NORTE
N-2400
70
7,052,400
482,452
4148
270
-70
51
53
2
0.65
29
1.13
Gold equivalence (AuEQ) is estimated as AuEQ = Au + (Ag*EQ), where Au = gold content, Ag = silver content and EQ = equivalence factor, which is calculated as the ratio of gold price to silver price * ratio of gold metallurgical recovery to silver metallurgical recovery.

EQ60 = PAu/PAg * RAu/RAg = 60, based on long-range prices of gold at US$800/oz & silver US$15/oz, and recoveries of gold at 90% and silver at 80% respectively
Table 3.

Summary of reverse circulation drillholes planned but not executed as of 20 January 2010.
Total
Collar coordinates, metres
Azimuth
Dip.
Intersection, metres
Grades, g/t
Drill Hole
ARQUEROS
Sector
Section
Metres
North
East
Elevation
(°)
(°)
From
To
Length
Gold
Silver
AuEQ60
AR09-31
SUR
N-1300
400
7,051,300
482,208
4306
90
-75
Planned
AR09-32
NORTE
N-2300
130
7,052,300
482,408
4144
270
-65
Planned
AR09-33
NORTE
N-2100
110
7,052,135
482,463
4128
0
-90
Planned
AR09-36
SUR
N-1400
400
7,051,400
482,020
4243
90
-70
Planned
AR09-37
SUR
N-1500
350
7,051,500
482,085
4181
90
-65
Planned
AR09-38
SUR
N-1600
300
7,051,600
482,155
4148
90
-70
Planned
AR09-39
SUR
N-1700
250
7,051,700
482,163
4107
90
-70
Planned
AR09-41
SUR
N-1600
170
7,051,600
482,400
4217
270
-60
Planned
AR09-42
SUR
N-1500
150
7,051,500
482,460
4203
270
-70
Planned
AR09-43
SUR
N-1400
200
7,051,400
482,435
4243
270
-75
Planned
AR09-44
SUR
N-1300
200
7,051,300
482,455
4235
270
-65
Planned
AR09-45
SUR
N-1200
220
7,051,200
482,420
4252
270
-75
Planned




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