Trinity Mining Holding AG

March 07, 2011 02:31 ET

Trinity Announces Initial Results From Trenches Sampling at Caupar, Peru

ZURICH, SWITZERLAND--(Marketwire - March 7, 2011) - TRINITY MINING HOLDING AG ("Trinity" or the "Company")(FRANKFURT:TKX) is very pleased to announce the first results on the on-going surface trenching program at its Caupar project. The exploration work done so far on the property by Trinity, including, 26.2 kilometers of geophysical survey, 1900 meters of trenching and sampling and 2396 meters of diamond drilling, have led to a potentially important low grade run of mine heap leachable gold-silver discovery located in the well known Alto Chicama gold mining district (Lagunas Norte; Barrick), more precisely in the department of La Libertad, East of the coastal city of Trujillo in Northern Peru.

The Caupar property covers an area of 3,000 hectares and tying on to it are properties owned by Barrick and Goldfield. Originally owned by Cambior (now Iamgold), the property was initially staked as a copper-gold project. Cambior conducted geochemical, geophysical and geological surveys that established a favorable mineralized zone having an approximate length of 3.5 km and a width of up to 1.0 km. It lies on top of the 3,500 m high north-easterly oriented Cerro (Mount) Caupar. The mountain is almost flat on top with gentle slopes on the sides and of easy access all year round. All infrastructural facilities including roads, water and electrical power are available nearby. The mineralized area has been established, by surface work, to have an approximate length of at least 3.5 km and to be up to 1.0 km in width. Its mining potential is suggested by the presence of a gold-silver mineralized 75 to 150 meters thick oxidized zone, located directly at surface on a flatted mountain top, whose overall volume is at least of 120 million tonnes at targeted recovered grades between 0.35 to 0.75 g/t Au and about 15.0 g/t Ag, as demonstrated by limited trenching and diamond drilling (see NI 43-101 technical report by Qualified person Alain Vachon, P.Eng, September 2009 on the Company's web site at,

If confirmed, the project would be of the open-pit, run of mine and heap leaching operation type. Recoveries of gold and silver, as demonstrated by bottle roll tests conducted by Kappes, Cassiday & Associates, are high: more than than 80% for gold and in the range of 65% for silver (when above 10 g/t in content). There will be an almost zero ore to waste stripping ratio. Gold is in a free state, very fine, and well distributed as observed in thin sections studies from drill core samples from the mineralized zone.

The mining potential remains to be confirmed by a well oriented exploration program as recommended by A. Vachon, his 43-101 technical report on the Caupar property. Therefore, the company has initiated the recommended work program that will consist of both trenching (about 7.5 km) followed by drilling totaling about 3,000 meters that will required a period of about 6 months to 9 months to execute with a budget of close to a million dollars. 

This first set of results have been compiled recently and covers the first phase of an extensive trenching program totaling about 7,500 meters of trenches (ie 7 W-E lines about 1 km long at a spacing of 250 meters and one N-S line of about 1 km) covering thus an area of about 3.5 km by 1 km. . This first phase was executed in November and December of 2010 and consisted of 4 W-E lines covering a total linear horizontal length of 4.1 km. A total of 378 samples covering a sampled total length of 1,890 meters. In-situ 5 meter chip rock samples were collected and sent to the lab for their gold and silver elements as well as for trace element content.

The highlights of this first set of results are the following:

-All of the sampled trenches (ie T-03,T-05, T-06 and T-07) returned impressive continuous section at grades above (0.1 g/t Au).

-These first sampled sections are all located outside of the core of the mineralized surface area .

-the most significant results are:

-T-03: 900 meters covered of which 285 meters sampled has returned two mineralized sections; 0,33 g/t Au over 35 meters and 0,15 g/t over 185 meters.

-T-05: 1300 meters covered of which 615 meters sampled has returned one section; 0,24 g/t Au over 315 meters including 0,33 g/t Au over 115 meters.

-T-06: 900 meters covered of which 705 meters sampled has returned one section; 0,19 g/t Au over 110 meters including 0,25 g/t Au over 45 meters.

-T-07: (only first 300 meters have been covered over the planed 1000 meters) one section returned 0,06 g/t Au over the last 65 meter including 0,14 g/t over 10 meters.

The Caupar gold-silver project is held under the provisions of two option agreements signed with Iamgold Corporation. Trinity has already complied with the first agreement and has acquired a 51% interest in the Caupar property as per November 2009. Trinity has then informed Iamgold that it will exercise its second option agreement in order to earn an additional 19% interest for an aggregated interest of 70%in the property. To achieve so, Trinity will have to incur an additional US$400,000$ in working expenditures and make a US$500,000 cash payment on or before the end of November 2011. Once this second option is completed, a Joint -Venture (Trinity 70%-Iamgold 30%) will be created with Trinity as operator.

The management is very pleased with these first results of this work program that, if successful, will determine the amount and kind of resources needed to declare the presence of an important low grade high tonnage low cost gold and silver ore body.

About Trinity Mining Holding AG

Trinity is a mining exploration company incorporated pursuant to the laws of Switzerland, whose shares trade on the Frankfort Stock Exchange of the Deutsche Börse Group. Trinity, through wholly owned subsidiaries, is engaged in mining exploration in Peru, with a focus on the Caupar property.

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