La Gitana is part of a new emerging mineral district in southern Oaxaca state that hosts multiple epithermal, skarn and replacement-type bulk tonnage prospects. The La Gitana low sulfidation epithermal system consists of two well defined, sub parallel northwest trending corridors of mineralization and alteration, the broad Cerro Di Oro zone to the northeast and the La Gitana vein-stockwork structure to the southwest.
In 2006 Chesapeake completed 40 diamond drill holes at La Gitana totaling 8,642 meters. All but two holes tested a 1,000 meter long section of the Cerro Di Oro a moderately altered, highly silicified NW trending ridge. The Cerro Di Oro mineralization consists of gold-silver bearing quartz breccia-veins, stockworks and disseminations. Northwest trending faults and related fracturing zones appear to be the principal controls of the epithermal mineralization. The higher grade feeder structures vary from 2 to 25 meters in thickness and are semi-continuous for hundreds of meters along strike. Disseminated mineralization consists of oxidized sulfides in permeable volcaniclastic rocks and rhyodacite flows in zones up to 50 meters wide.
Drill results on Cerro Di Oro confirmed the existence of a well-defined zone extending 500 meters in length, 50 to 150 meters wide and 50-300 meters deep. The average grade of the drilled system was 0.71 g/t gold and 27 g/t silver. The mineralized system remains open at depth and along strike. Step-out drilling discovered additional gold-silver mineralization along the corridor for over 300 meters to the southeast.
Chesapeake has vended its interest in La Gitana to Gunpoint Exploration Ltd (GUN:TSX.V) pursuant to a business transaction that closed on November 29, 2010. Chesapeake owns 32,017,899 common shares of Gunpoint, representing 81.9% of the issued and outstanding shares of Gunpoint.