by Ubika Research on Oct 28, 2011
High Grade 13.8% Copper, Silver and Gold brings focus to La Quinta’s (TSXV: LAQ) VMS Project in British Columbia
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On Oct 26, 2011, La Quinta Resources Corp (TSX VENTURE: LAQ) (FRANKFURT: LQK) announced encouraging first assays from the Carruthers Pass volcanogenic massive sulphide (VMS) project in British Columbia. Initial drilling targeted a massive sulphide mineralization approximately 10m x 7m, exposed in a talus slope beneath a cliff. Based on results from this drill program the exposure appears to be a detached slab broken away from the adjacent cliff,. The key highlight of the results reported was hole # CAR11-11A that intersected 13.8% copper near surface. Weighted average values of assays for the VMS zone include 2.37 gm/tn gold (0.069 oz/st), 192 gm/tn silver (5.6oz/st), 6.24% copper and 5.87% zinc. These values are based on adjustments of interval lengths to account for approximately 33% core loss.
Using an IP survey, La Quinta has identified numerous targets for further exploration work. LAQ believes that the IP survey has identified some very low resistivity zones one of which could be the source of VMS in the slab. Based on surface and downhole IP surveys conducted this fall, LAQ has engaged an outside consulting firm to build a 3D model of the IP data. This 3D model along with the results from the first set of drill holes will give good guidance to plan 2012 drill site locations. Further drill results will give evidence on LAQ’s understanding of the geology and structural orientation of the deposit. The recently completed drill program included four diamond drill holes on three target areas, for a total of 801 m (2,603 ft). More assay results are pending which should give good news flow for LAQ investors.
Carruthers Pass is a volcanogenic massive sulphide target discovered by Phelps Dodge in 1997 and explored by them between 1997 and 2000. The property consists of 130 mineral claim units covering 3,250 hectares. Carruthers Pass is located in central British Columbia, approximately 70 kilometres south of the Kemess gold-copper porphyry mine owned by North Gate Minerals (TSX: NGX) (NYSE Amex: NXG). Sustut Copper, a red bed copper-basalt deposit owned by North Gate Minerals (TSX: NGX) (NYSE Amex: NXG) is located 35km North West of Carruthers Pass project.
The Carruthers Pass project is under option from Cariboo Rose Resources Ltd. (TSX VENTURE:CRB). Under the terms of the LOI, the Company can acquire 90% of the project from Cariboo Rose over a six (6) year term by spending $2 million in work commitments on the project, and making payments of $470,000 cash and issuing 2 million shares of the Company’s common stock to Cariboo Rose. The Company further has opportunity to acquire the remaining 10% interest from Cariboo Rose at fair market value. The project is subject to a 2.5% royalty, which may be reduced to 1% royalty by purchase from the underlier, Phelps Dodge Corporation of Canada, Limited for $1.5 million.
Disclosure
Ubika Research has received compensation from La Quinta Resources Corp to provide analyst research coverage.
Except for the historical information presented herein, matters discussed in this document contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements.
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