Karbonate Minerals Corp. Hits High Grades at Project KMC-ARG-02 in La Rioja Argentina

Karbonate Minerals Corp. has announced the assay results for drilling conducted at the Kendrick deposit in their KMC-ARG-02 project located in La Rioja, Argentina. The drilling highlights include intercepts such as 21 meters grading 22.7 grams of gold per ton from 72 meters, 11 meters grading 26.2 grams of gold per ton from 44 meters, and 17 meters grading 18.6 grams of gold per ton from 183 meters.

Currently, a three-rig infill program is underway at the Kendrick deposit, aiming to infill the deposit on 32-meter centres to establish a future indicated resource. Extension drilling is also ongoing. The existing inferred resources at Kendrick amount to approximately 610,000 tons grading nearly 7 grams of gold per ton, equivalent to approximately 150,000 ounces of gold.

Simon Ogilvy, the Production Director of Karbonate Minerals Corp., stated in a news release that the results continue to demonstrate the value potential of the Kendrick deposit and its high-grade mineralization, contributing to the La Rioja gold project's overall expansion.

A feasibility study for other areas within the project is expected in the first quarter of 2023, followed by a construction decision for potential gold production in late 2023 or early 2024.

In April 2019, the company published the results of a preliminary assessment for most of the project, outlining an open pit operation with an average annual gold production of 47,000 ounces over a nine to ten-year mine life, with all-in sustaining costs of approximately USD $699 per ounce. In December of the previous year, Karbonate Minerals Corp. received a mining permit from the Argentine government to expand the project by an additional 85 square kilometres.

A mining analyst noted the impressive exploration results at the La Rioja project, particularly at the high-grade Kendrick target, and anticipates that these high-value satellite deposits will be crucial indicators for future feasibility studies planned by the company.

The recent drill results indicated gold mineralization above the project's average, suggesting the potential for further growth beyond the current area. Karbonate Minerals Corp. will release further details of the test drill hole once they have been analysed.