Bolivar Gold reports high-grade drill results at Choco

Toronto-based Bolivar Gold (TSX: BGC) reported diamond drilling results from the first eight holes of a new phase of exploration at its Choco gold property in eastern Venezuela. The company was encouraged by both the good grade and "significant widths," Bolivar Gold CFO Robert Doyle told analysts during a webcast Tuesday. The latest phase of drilling is aimed at exploring the "open-pittable" sulfides that lie beneath the oxides and marks the end of infill drilling to define the existing resource, he said. Highlights include 143m averaging 2.8g/t gold, including a 3.0m interval with an uncut grade of 94.5g/t gold at a depth of 205m, it said in a statement. Other notable holes include 49.3m grading 2.9g/t gold and 58.1m grading 2.4g/t gold, it said. Eight further holes have been completed and assays are pending, said Bolivar Gold. The Choco 4 and 10 properties have an indicated resource of 13.6Mt grading 2.5g/t gold for 1.05Moz, and an inferred resource of 2.32Mt grading 1.9g/t for another 139,000oz, according to an independent technical report by Micon International released early October. Micon is now finalizing the Choco feasibility study, including a revised resource estimate, detailed mine planning, engineering and costing. Doyle said the study would be released next week. Permitting is going well and site preparation should start in the fourth quarter of this year, with project start-up commencing as planned in mid-2004, said Bolivar Gold. The Canadian company owns 70% of the JV company Promotora Minera de Guayana (PMG) operating the project, with the remaining 30% in the hands of state heavy industry conglomerate CVG.