On July 25, 2011 La Quinta Resources Corporation (TSXV: LAQ) (CVE: LAQ) announced the drill results from the first two holes of its summer drilling program on its Easter Gold and Silver project. This program is focused on testing the mineralization at the known main vein with a view to expand the current resource deposit. It is also targeting the West Vein area, which was identified as a strong area for potential discovery as the mineralization seems to trend in the westerly direction.
The first two holes were exploratory vertical reverse circulation (RC) drill holes, fairly shallow in depth and returned assays that encountered encouraging gold values. It is important to note that these holes are shallow, encountered groundwater and must be followed with core diamond drill holes to provide more reliable and accurate results. Nevertheless, these results do help in determining the approximate position, depth and nature of mineralization. The company plans to follow the recently concluded RC drill holes with core diamond drill holes shortly as it plans a step out drilling along the Main Vein.
The Company also announced that it has completed three shallow reverse circulation orientation holes in the West Vein area. Early this year the Company’s technical staff found epithermal veins containing as much as 10 g/t gold (0.29 oz/st) in surface reconnaissance samples. No drilling has ever been done in this area. Assays from these holes are pending. This is particularly exciting as this could represent a completely new area of mineralization and may result in a significant blue sky opportunity for the company to increase the gold resource deposit at the Easter Project.
The company believes that the orientation of the mineralized shoots within the Main Vein can reliably be determined as the drill work expands the identified resource both downdip and along strike. The company is planning a step out drilling at depth using diamond drilling methods, which could result in better grades and can result in an expanded resource deposit.
Ubika Research views this latest announcement positively. We have stated before and continue to believe that La Quinta will focus first on adding ounces to the current resource category by drilling the known targets and then step-out drilling along the Main Vein as well as the sub-parallel Shaft Vein to define gold – silver mineralization in the deeper portions of the Easter system. This may result in an expansion of the resource base for the company. We also believe that the company has established with more confidence the direction and the position of the mineralization based on the last year’s drilling. We expect the company to continue with the current drilling program at the Main Vein and the West Vein area, which could result in a significantly expanded resource deposit from the current level.
We believe that as La Quinta (TSXV: LAQ) continues its exploration program, it can attract considerable attention. With gold at record high, there will be considerable interest in junior gold exploration companies with good potential to build economical resource base. The Easter property is in JV with Pilot Gold, where Newmont Mining Corp (NYSE: NEM) owns 20% (as a result of Newmont’s recent acquisition of Fronteer Gold). This has bearing for future M&A potential if LAQ is successful in establishing a reasonable resource deposit (upward of 500,000 oz and potentially closer to 1 million oz). We will watch the developments related to the exploration plans closely and will notify our readers about new developments.
Ubika Research had initiated research coverage on La Quinta Resources Corp. (TSXV: LAQ) on June 11, 2010 under the title “Planning to Add New Shine to Nevada’s Easter Property”. The property of focus for LAQ is the Easter gold project in South East Nevada, which it acquired from Nevada Eagle Resources, a subsidiary of Fronteer Development Group Inc . This project is located in the U.S. state of Nevada, one of the best-known gold zones in the world in a mining friendly jurisdiction.
On June 9, 2010, the company announced that it has received an independent National Instrument (NI) 43-101 compliant mineral resource estimate of 101,000 ounces of gold and 1,077,000 ounces of silver in the indicated category from SRK Consulting U.S. Inc. (“SRK”), for the Easter project.
Visitors can access research reports on La Quinta Resources on their Company Hub HERE.
To view the recent Video Interview with Mr. Walter Martin, President and Director of La Quinta Resources, please visit HERE.
Disclosure
Ubika Corp was compensated by La Quinta Resources to provide analyst research coverage. Ubika Corp has also received compensation in the form of stock option to acquire common shares of the Company.
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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