Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
In an object lesson on the fickle nature of junior explorer investment, dismayed investors took a huge chunk out of Viper Gold’s stock on the Toronto Venture Exchange after trade resumed Monday afternoon.
Viper lost 18% of its value to trade at 13c after it reported results for the verification sampling at its Campbell Lake property showed none of the high grade gold values – up to 10 grams a tonne – announced a fortnight ago. The initial grades sent the shares of the tiny Ontario explorer soaring to almost double of what it is worth now. The company said it is investigating the huge discrepancies after weakly anomalous values were found in 5 samples and the remaining 12 were “below detection level.” Viper, which is also looking for gold in Peru, hit a high of 47c early this year.
Both sets of results are reproduced below:
Press Release 24 October 2011:
TORONTO, ONTARIO–(Marketwire – Oct. 24, 2011) -Viper Gold Ltd. (“Viper Gold” or the “Company”) (TSX VENTURE:VPR) reports the analytical results for the verification sampling completed on the Campbell Lake Property does not confirm the high grade gold values previously announced on October 11, 2011. The verification samples contained weakly anomalous values of gold in 5 samples while the remaining 12 samples were below detection level. Silver values are similar in nature to those reported in the previous press release.
Mr. G. A. Harron, a qualified person as defined under National Instrument 43-101, of G.A. Harron & Associates Ltd., an arm’s length consultant to the Company, was contracted by Viper Gold to visit and sample the Campbell Lake Property to verify the high grade gold and silver results reported from the Campbell Lake and Blue Bottle Lake zones. Mr. Harron visited the property and took a total of 17 samples from the Campbell Lake (10) and Blue Bottle Lake (7) Zones using accepted industry sampling best practices. Samples were submitted for analysis to Activation Laboratories of Ancaster, Ontario and were analyzed using the fire assay gravimetric analytical technique as summarized in the following table.
Campbell Lake Zone Au (gpt)
Fire Assay
GravimetricAg (gpt)
Fire Assay
GravimetricN698527 <0.03 27 N698528 <0.03 5 N698529 <0.03 55 N698530 <0.03 24 N698531 <0.03 <3 N698532 <0.03 10 N698533 0.30 381 N698534 0.30 982 N698535 0.69 54 N698536 0.22 <3 Blue Bottle Lake Zone N698537 0.32 4 N698538 <0.03 4 N698539 <0.03 <3 N698540 <0.03 <3 N698541 <0.03 <3 N698542 <0.03 <3 N698543 <0.03 3 UTM coordinates identifying the sample locations for all of the Campbell Lake samples and Blue Bottle Lake zone samples was provided by Mr. Harron. Grab samples are selective by nature and are unlikely to represents average grades on the property. The following table summarizes the sample locations disclosed in this news release.
Table of Sample Locations and Sample Types
UTM NAD 83, Zone 17
Sample ID Easting (m) Northing (m) Sample Type Campbell Lake Zone N698527 494345 5306410 grab/outcrop N698528 494341 5306409 grab/outcrop N698529 494334 5306403 grab/outcrop N698530 494334 5306404 grab/outcrop N698531 494317 5306387 grab/outcrop N698532 494299 5306354 grab/outcrop N698533 494295 5306354 grab/outcrop N698534 494294 5306356 grab/outcrop N698535 494284 5306349 grab/outcrop N698536 494235 5306309 grab/outcrop Blue Bottle Lake Zone N698537 494927 5306391 Chip N698538 494927 5306388 Chip N698539 494930 5306387 Chip N698540 494933 5306382 Chip N698541 494935 5306382 Chip N698542 494917 5306376 Chip N698543 494925 5306384 Chip The Company is taking a number of steps to try and identify the root cause for this major discrepancy in the gold values reported for the Campbell Lake and Blue Bottle Lake zones on October 11, 2011 and those reported in this press release. The steps will include, but not be limited to, a third analysis of the original 39 sample rejects reported on October 11, 2011 at another independent accredited analytical laboratory.
The Campbell Lake Property consists of 96 claim units representing approximately 1,500 hectares in Halliday and Midlothian Townships in Northeastern Ontario, Canada. The property is located approximately 30 kilometres west of Matachewan, Ontario and may represent the western extension of the Kirkland Lake – Larder Lake Break. Pursuant to the Option Agreement, Viper Gold can earn a 100% interest in the Campbell Lake Property over a 2 year period by making option payments totalling $100,000 and issuing an aggregate 600,000 common shares, of which to date $10,000 has been paid and 200,000 shares have been issued. The Vendor retains a 2% Net Smelter Royalty, 1% of which can be purchased by Viper Gold for $1,000,000.
Assay Information
Samples were submitted to Activation Laboratories in Ancaster, Ontario. Activation Laboratories has a stringent quality assurance – quality control system that complies with International Standards ISO 17025:2005. All samples were analyzed using the gold, silver fire assay – gravimetric finish analytical technique. A secure chain of custody is maintained in storing and transporting all samples.
Company Profile
Viper Gold Ltd. is an emerging Canadian based junior exploration company focused on the precious metals potential of the “Gold Corridor” in Northern Peru and the Abitibi Greenstone Belt of Ontario, Canada.
QP Statement
The information in this release was prepared under the direction of Paul Davis, P.Geo. President and CEO of Viper Gold, and, a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Davis is responsible for all technical information contained in this news release.
Further Information
For further information relating to the Company or this release please visit the Viper Gold website at www.vipergoldltd.com.
Press Release 11 October 2011:Viper Gold Reports Initial High Grade Gold and Silver Results From Campbell Lake Property
TORONTO, ONTARIO–(Marketwire – Oct. 11, 2011) – Viper Gold Ltd. (“Viper Gold” or the “Company”) (TSX VENTURE:VPR) is pleased to announce the assay results of 39 grab samples taken from the Campbell Lake Property. The samples were provided to Viper Gold by the vendor (“Vendor”) of the option to acquire an undivided 100% interest in the Campbell Lake Property pursuant to an option agreement between the Vendor and Viper Gold (see the Company’s press release dated September 9, 2011). A total of 21 of 25 samples taken with variable spacing along the 175 metre strike length of the Campbell Lake quartz vein returned assays of greater than 10 grams per tonne (“gpt”) gold. The Campbell Lake Zone is also anomalous in copper, zinc, lead, tin and scandium. Highlights of the initial results include:
- Grab samples from Campbell Lake quartz vein assayed up to 1,721 gpt gold and 3,582 gpt silver
- Gold mineralization identified in grab samples over full 175 metre strike length of Campbell Lake quartz vein
- Grab samples from Blue Bottle Lake shear zone assayed up to 73.9 gpt gold and 11.8 gpt silver
Given the high grade results returned from initial assay testing, the Company determined to confirm the results by conducting a second run of check assays on a rush basis. The Company recognizes that grab samples are selective by nature and are unlikely to represents average grades on the property. The following tables summarize the full set of results for the 39 samples analyzed from the property.
Campbell Lake Zone Sample Login
Weight (kg)Au (ppm) Fire Assay
ICP-OESAu (gpt)
GravimetricAg (ppm) Aqua Regia
Digest ICP-OESAg (ppm)
GravimeticAu (gpt)
MetallicsRun 1 Run 2 Run 1 Run 2 Run 1 Run 2 Run 1 Run 2 Run 2 1 2.82 >10 175 28.7 40.6 83.2 2 3.04 >10 59.1 8.5 2.7 78.4 3 1.48 >10 102 59.8 57.4 220 4 0.88 8.65 >10 8.44 1.7 1.7 5 2.14 >10 58.1 22.4 47.0 29.1 6 0.68 >10 18.7 82.4 78.4 46.6 7 1.14 >10 18.8 82.5 80.6 51.3 8 2.38 2.09 2.39 >100 >100 137 141 9 1.22 >10 20.1 11.4 10.6 67.4 10 1.00 >10 1105 >100 >100 1114 1036 75.1 11 1.36 >10 49.2 3.4 3.8 31.2 12 2.08 >10 16.3 4.8 3.8 119 14 1.22 >10 22.3 4.6 5.8 81.8 15 1.88 >10 23.6 11.1 4.4 31.8 16 3.02 >10 68.0 >100 >100 240 221 24.9 17 1.66 >10 18.9 28.6 27.5 39.1 Sample Login
Weight (kg)Au (ppm) Fire Assay
ICP-OESAu (gpt)
GravimetricAg (ppm) Aqua Regia
Digest ICP-OESAg (ppm)
GravimeticAu (gpt)
MetallicsRun 1 Run 2 Run 1 Run 2 Run 1 Run 2 Run 1 Run 2 Run 2 18 2.14 >10 16.5 15.0 14.8 18.1 19 2.46 >10 103 42.9 60.4 79.9 34 0.80 >10 259 64.0 58.6 329 35 1.90 1.47 2.23 69.3 >100 1114 36 1.30 >10 1721 91.8 >100 1499 1920 1260 37 0.92 >10 15.4 41.9 41.8 5.66 38 0.54 >10 10.8 >100 >100 3582 3598 2.06 39 2.02 0.518 0.493 93.5 >100 2050 1975 40 2.18 >10 37.5 15.2 17.1 96.4 • Blank cell indicates sample was not analyzed using specified analytical technique.
Blue Bottle Lake Zone Sample Login
Weight (kg)Au (ppm) Fire Assay
ICP-OESAu (gpt)
GravimetricAg (ppm) Aqua
Regia
Digest ICP-OESAg (ppm)
GravimeticAu (gpt)
MetallicsRun 1 Run 2 Run 1 Run 2 Run 2 Run 2 Run 1 Run 2 Run 2 20 1.66 4.81 7.94 1.3 0.8 21 1.70 0.255 0.285 1.2 1.0 22 2.60 7.81 3.81 2.1 1.9 23 2.00 4.53 >10 7.93 4.2 3.8 24 3.06 >10 10.3 2.2 1.9 22.5 25 2.02 >10 14.7 1.2 1.0 4.37 26 2.66 0.034 0.083 0.3 0.2 27 1.76 0.053 0.051 0.7 0.7 28 1.26 0.237 0.268 5.9 5.5 29 2.00 >10 23.4 5.2 5.4 7.70 30 1.94 >10 9.22 2.6 3.0 18.6 31 1.48 >10 73.9 11.8 6.7 33.3 32 1.26 >10 42.1 2.3 3.3 65.2 33 2.00 4.18 0.790 2.2 2.5 • Blank cell indicates sample was not analyzed using specified analytical technique. “I am excited about the high grade gold and silver results from the preliminary sampling on the Campbell Lake Property” said Paul Davis, President and Chief Executive Officer of Viper Gold. “The distribution of high grade gold and silver along the entire exposed length of the Campbell Lake quartz vein indicates to me that this is a highly mineralized system that is yet to be closed off along strike and down plunge. I am also excited by the results from the Blue Bottle Lake zone, located approximately 700 metres east of the Campbell Lake Zone, which indicates that there is potential throughout this area for additional high grade gold and silver mineralization.”
The Company understands that the 39 grab samples submitted for analysis were taken by the Vendor using accepted sampling best practices and that the chain of custody of the samples was maintained by the Vendor until the samples were collected by AGAT Laboratories in Timmins, Ontario. The Vendor provided the Company with sample descriptions and sample location maps for the 39 grab samples submitted. The Company was not directly involved in the sampling process but is confident in the integrity of the samples based on representations made by the Vendor.
As reported above, given the high grade nature of the results, the Company requested that the samples be re-analyzed by AGAT Laboratories on a rush basis. All 27 samples that assayed greater than 10 gpt gold were re-analyzed using the Fire-Assay Metallic Gold with Induced Coupled Plasma Finish procedure. The Fire Assay Metallic Gold analysis is considered the best technique on high grade gold values and helps to identify coarser gold that could be indicative of a “gold nugget effect”. The rigorousness of the metallic procedure results in the greatest accuracy on high grade gold samples.
Variation noted in the gold contents of the 27 high grade gold samples in the metallic gold analysis can be attributed to a “gold nugget effect”, as gold is distributed throughout both the coarse and fine fractions. The variations are not unexpected as the re-analysis was completed on a separate portion of the original sample than the first analysis. Values for silver displayed the same variability, however, copper, zinc and lead were similar in both sample runs as the same pulp sub-samples were used in both analyses.
As an additional verification, Viper Gold has hired an independent arm’s-length consultant to conduct a site visit as soon as possible to re-sample both the Campbell Lake Zone and the Blue Bottle Lake zone to confirm the presence of high grade gold and silver. Analytical results from the consultant’s site visit are anticipated by year end.
The Campbell Lake Property consists of 96 claim units representing approximately 1,500 hectares in Halliday and Midlothian Townships in Northeastern Ontario, Canada. The property is located approximately 30 kilometres west of Matachewan, Ontario and may potentially represent the westerly trend of the Kirkland Lake – Larder Lake Break. Pursuant to the Option Agreement, Viper Gold can earn a 100% interest in the Campbell Lake Property over a 2 year period by making option payments totalling $100,000 and issuing an aggregate 600,000 common shares, of which to date $10,000 has been paid and 200,000 shares have been issued. The Vendor retains a 2% Net Smelter Royalty, 1% of which can be purchased by Viper Gold for $1,000,000.
Twenty-five (25) samples were taken from the Campbell Lake Zone and fourteen (14) samples were taken from the Blue Bottle Lake zone. A map identifying the sample locations for all of the Campbell Lake samples and 9 of the 14 Blue Bottle Lake zone samples was provided by the Vendor. Sample locations for the Campbell Lake zone have been identified based on the distance from the southwest end of the Campbell Lake quartz vein that extends for 175 metres to the east-northeast. UTM coordinate locations for the two zones have been extrapolated to the centre of the stripped outcrops over the two zones. The following table summarizes the sample locations disclosed in this news release.
Table of Sample Locations and Sample Types Campbell Lake Zone: UTM NAD 83, Zone 17, 494207E, 5306318N Sample # Distance from Southwest
End of Quartz Vein (m)Sample Type 1 18 grab/outcrop 2 43 grab/outcrop 3 43 grab/outcrop 4 49 grab/outcrop 5 91 grab/outcrop 6 98 grab/outcrop 7 107 grab/outcrop 8 111 grab/outcrop 9 111 grab/outcrop 10 111 grab/outcrop 11 128 grab/outcrop 12 152 grab/outcrop 14 158 grab/outcrop 15 158 grab/outcrop 16 171 grab/outcrop 17 174 grab/outcrop 18 183 grab/outcrop 19 189 grab/outcrop 34 98 grab/outcrop 35 98 grab/outcrop 36 98 grab/outcrop 37 98 grab/outcrop 38 98 grab/outcrop 39 98 grab/outcrop 40 43 grab/outcrop Blue Bottle Lake Zone: UTM NAD 83, Zone 17, 494935E, 5306385N Sample # Sample Type 20 grab/float 21 grab/float 22 grab/outcrop 23 grab/outcrop 24 grab/outcrop 25 grab/outcrop 26 grab/outcrop Sample # Sample Type 27 grab/outcrop 28 grab/outcrop 29 grab/outcrop 30 grab/outcrop 31 grab/outcrop 32 grab/outcrop 33 grab/outcrop Assay Information
Samples were picked up by AGAT Laboratories in Timmins, Ontario and shipped to their preparation Lab in Sudbury, Ontario. Assaying is carried out at AGAT Laboratories Facilities in Mississauga, Ontario. AGAT Laboratories has a quality control system that complies with International Standards ISO 9001:2000 and ISO 17025:2005. All samples were analyzed using an aqua regia digestion with a 3:1 hot mixture of hydrochloric and nitric acids followed by Inductively Coupled Plasma – Optical Emission Spectroscopy (ICP-OES) finish. Samples analyzing over the ICP limits for silver, (>100 ppm), were re-analyzed using a gravimetric finish. Copper and zinc analysis over the ICP limits, (>10,000 ppm), were re-analyzed using a Flame Atomic Adsorption (AAS) analysis. Gold is assayed using a fire assay with an ICP-OES finish. Samples analyzing over the ICP limits for gold, (>10 ppm), were re-analyzed using a gravimetric finish. All samples that analyzed over 10 gpt gold in the first batch analysis were re-analyzed using the Metallic Gold assay procedure. A secure chain of custody is maintained in storing and transporting all samples by AGAT Laboratories. AGAT Laboratories maintains an Internal Quality Assurance Program consisting of standards, blanks and duplicate analysis.
In the metallic gold assay procedure, the sample is two-stage crushed to minus 10 mesh and split to achieve a 500 gram pulp assay-sample that is pulverized to a fineness such that approximately 95% will pass through a minus 140 mesh screen. The sample is then screened through a 140 mesh screen where the fraction that passes through the screen is called the “Minus” fraction and the portion that does not pass through the screen is called the “Plus” fraction. The minus fraction is then weighed and rolled to ensure homogeneity and two 30 gram sub-samples are taken from this fraction and fire assayed for gold. The Plus fraction is assayed entirely. Each metallic assay requires three fire assay analyses to achieve a result. The gold values are then calculated back to the original sample weight which provides a net gold value for the sample that is based on two Minus and a single Plus value. Final results are collated by computer.
Company Profile
Viper Gold Ltd. is an emerging Canadian based junior exploration company focused on the precious metals potential of the “Gold Corridor” in Northern Peru and the Abitibi Greenstone Belt of Ontario, Canada.
QP Statement
The information in this release was prepared under the direction of Paul Davis, P.Geo. President and CEO of Viper Gold, and, a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Davis is responsible for all technical information contained in this news release.
Further Information
For further information relating to the Company or this release please visit the Viper Gold website at www.vipergoldltd.com.
5 Comments
GVSB
My first thought was about the robustness of the disclosure standards. Are people not expected to triple-check results when samples were given by an interested party? Aren’t there standards about this? How ineffective the cautionary statements in the first disclosure and the later recanting of the results shows the purpose of the disclosures and NI standards are not served – Investors still fall for it and still lose money.
Franciscus Baars
Probable Au nugget effect, absent for the Ag. Only solution: take larger-volume samples for Au, until the nature of Au distribution is isolated. Remember, nugget effect over-estimates high grades as well as under-estimating low grades! Don’t be so hasty about publishing non-verified results, and always take 15-20% duplicate field samples.
Reiner Mielke HBSc,MSc
Why would you publish grab sample results from a vendor without first checking the validity of the samples? Grab samples are not a reliable method of determining the grade of an ore zone, especially gold.
Sonnyone
Hey Mr Mielke,
They werent using the grab samples to determine the grade of the ore zone just the content of the economic mineralization within the samples themselves…Also AGAT labs is a well recognized lab that has safeguards in place to ensure the accuracy of the conducted tests.
The Mafia Man
Just how could anyone be so stupid/greedy as to do something like this?? They got just what they diserved!!