Home Argentina market E2 Metals begins drilling the El Rosillo project near the world famous Navidad silver deposit

E2 Metals begins drilling the El Rosillo project near the world famous Navidad silver deposit

In March of this year, Eric Sprott formed the cornerstone of E2 Metals’ $8.5 million placement to fund drilling at El Rosillo and its Conserrat projects in Argentina.

E2 Metals (ASX: E2M), backed by Eric Sprott, has begun drilling its El Rosillo Virgin Fields project, which sits on the same Gastre Fault that hosts Pan American Silver’s Navidad deposit in Argentina’s province of Rio Negro.

The diamond drill program will include 2,500 m and will target seven gold bearing structures in five prospect areas. In total, 1.4 km of cumulative strike will be tested.

Priority targets have been firmed up from the trenches, with notable results at Prospect 37A of 1.9m at 184 grams of gold per tonne and 55g/t of silver, 10.7m at 3.7g/ t gold and 25 m at 2.9 g/t gold.

At Prospect 38A, trenching unearthed 1 m at 279 g/t gold and 116 g/t silver, while Prospect 38F and Prospect 38E returned 7 m at 3.6 g/t gold and 1.2 m at 8.7 g/t gold respectively.

E2 Metals managing director Todd Williams said the company is “excited” about the first drill program at El Rosillo, which will further test the spectacular grades and visible gold identified in the trenches.

“We believe that El Rosillo, which includes the wider district 100% controlled by E2 Metals, exhibits all the characteristics of a large intrusion-related gold system, with the potential for a major discovery enhanced by the proximity of the Gastre Fault which hosts the world class Navidad silver deposit.

Drilling has already begun at Prospect 37A, and the campaign is expected to last six weeks, with assays scheduled four weeks after dispatch to the laboratory.

Navidad deposit and province of Rio Negro

According to the Canadian company Pan American Silver, Navidad is one of the largest undeveloped silver deposits in the world.

The deposit contains 751 million ounces of contained silver resources.

Besides El Rosillo, E2 Metals also has three other projects in the western part of the Rio Negro province: Vista Alegre, Ofelia and Paredes.

Eric Sprott supports E2 Metals

Mr. Sprott, a world-renowned commodity investor, backed E2 Metals in March this year.

Mr. Sprott was the cornerstone of E2 Metals’ $8.5 million placement, which saw him become a major shareholder.

Mr. Williams said Mr. Sprott’s support validated the “inherent value” of E2 Metals’ projects.

In addition to unlocking value at El Rosillo, E2 Metals is actively exploring its Conserrat gold and silver project in Argentina’s Santa Cruz province.

Drilling on the Malvina target within Conserrat returned recent intersections of 14m at 8.7 g/t gold and 2,541 g/t silver from 67m, including 7m at 17 g/t t of gold and 4,759 g/t of silver.

Conserrat is close to the Cerro Vanguardia mine of AngloGold Ashanti (ASX: AGG), which has historic and current reserves of 8.9 Moz of gold and 137 Moz of silver.