THEMAC initiates exploration on potential gold deposit near copper Flat project
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 6, 2012) – THEMAC Resources Group Limited ("THEMAC" or "the Company") (TSX VENTURE:MAC) today announced assay results from gold mineralization discovered within the old Andrews mining district, approximately one mile northeast of the Company's 150 million tonne Copper Flat deposit in New Mexico, USA.
- Gold/silver mineralization at Andrews with at least four persistent structures within the zone
- Samples contain strongly anomalous gold values with values as great as 90.6 g/t and 76.3 g/t
- 18 of 21 samples contain significant gold mineralization with only one sample below the limit of detection
- Located one mile northeast of the Copper Flat deposit and within the Company's claim block
- Geophysical work has been initiated
"We are very excited by this new development at Copper Flat," said Andre Douchane, CEO. "Historically, the district has produced over 500,000 ounces of gold from vein deposits and alluvial workings, but the focus of our work has been on the copper porphyry. The new Andrews prospect, one of several gold targets, offers the possibility of a significant new source of gold mineralization."
Encouraging assay results from 21 select rock and grab samples collected during reconnaissance in the Andrews area have been received and summarized in the following table.
|Sample #||Au ppb||Au g/t||Ag g/t||Cu ppm||Pb ppm||Zn ppm||As ppm||Bi ppm||Te ppm|
Table 1: Andrews Area Assay Results
The above geochemical samples were analyzed by Skyline Laboratory located in Tucson, Arizona.
All of the samples were initially analyzed by a multi-element ICP, while the initial gold and silver values were determined by fire assay with an atomic absorption (AA) finish on a 30 g charge.
Gold values exceeding 3000 ppb were checked and confirmed using a fire assay with gravimetric finish on a 30 g charge.
The area of interest, which is very different mineralization from the Copper Flat deposit, is underlain by a sequence of andesitic volcanics resting on lower Paleozoic limestones and is cut by a broad (100 m-150 m wide) zone comprised of several narrow N50E- N60E trending steeply dipping mineralized structures. Due to surface exposures, the actual number of structures is not known, but based on reconnaissance mapping there appears to be at least four persistent structures within this zone. Individual structures tend to be 2.0'- 4.0' (0.61 m- 1.22 m) wide and for the most part dip 75-80 degrees to the northwest. There are, however, a few segments of individual structures in which the dip is 75- 80 degrees to the southeast. The structures typically consist of bleached gouge and andesitic breccia fragments and fine quartz stockworks or sheeted quartz veining. At the surface, the vein material is typically limonite stained and locally quite gossanous and the vein material contains numerous pyrite molds.
As shown above, the assay results indicate that the select samples of vein material locally contain strongly anomalous gold values with values as great as 90.6 g/t in sample CFRI-03 and 76.3 g/t in sample CFRI- 11.
Additionally, it should be noted that the elevated gold values are associated with anomalous pathfinder elements (i.e. As > 1,000 ppm; Bi > 1,000 ppm, Te 40.3 ppm and Sb 50.9 ppm) that are commonly associated with gold mineralization.
Preparations are being made to undertake an initial core drilling program on the Andrews gold target during the summer of 2013. The company sees potential for a number of different gold targets within the area and is carrying out a geophysical program to better understand the prospect geology.
Technical information in this news release has been approved by Mr. Ray Irwin, P. Geo., and a Qualified Person under National Instrument 43-101.
About the Copper Flat Project
Copper Flat is a former producing mine located in Sierra County, State of New Mexico approximately 150 miles south of Albuquerque and 20 miles southwest of the town of Truth or Consequences.
Copper Flat is a porphyry copper-molybdenum deposit containing economically recoverable gold and silver mineralization hosted by a quartz monzonite stock which intrudes an andesitic volcanic complex. The Cretaceous (75 million years ago [Ma]) Copper Flat quartz monzonite hosts mineralization dominated by pyrite and chalcopyrite with subsidiary molybdenite. The mineralization is focused along intersecting northeast and northwest-trending faults, the intersection of which is associated with the host intrusive.
The project has an estimated $54 million benefit and financial savings from the civil infrastructure that is currently in place at Copper Flat including a tailings dam, largely pre-stripped open pit, power lines, water well field and pipeline, access roads, diversion channels and usable process building foundations. The Copper Flat land package comprises in excess of 1,200 hectares, and the deposit is located entirely on patented mining claims wholly-owned by THEMAC Resources Group.
Permitting for the return of the project to production is at an advanced stage, and a feasibility study is targeted for completion in March of 2013.
Preparations are being made to undertake an initial core drilling program on the Andrews gold target during the summer of 2013.
About THEMAC Resources Group Limited
THEMAC is a mining development company with a strong management team and as of May 18, 2011, acquired a 100% ownership interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA. We are committed to bringing the closed copper mine, Copper Flat, in Sierra County, New Mexico back into production with innovation and a sustainable approach to mining development and production, local economic opportunities and the best reclamation practices for our unique environment.
The Company is listed on the TSX Venture Exchange (ticker: MAC) and has issued share capital of 74,117,622 common shares (fully diluted share capital 135,648,241).
Forward Looking Statements
Certain information contained or incorporated by reference in this MD&A, including any information as to THEMAC's future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of copper, molybdenum, gold, and silver; volatility in the price of fuel and electricity; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada and the USA; business opportunities that may be pursued by the Company; the anticipated impact of converting to International Financial Reporting Standards, operating or technical difficulties in connection with mining or development activities; employee relations; litigation; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks. Many of these uncertainties and contingencies can affect the Company`s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, THEMAC. These factors are discussed in greater detail in the Company's most recent Form 20-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this MD&A are qualified by these cautionary statements.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/MACmap1206.pdf
Neither the TSX Venture Exchange (the "TSXV") nor it's Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.
THEMAC Resources Group Limited
Andre J. Douchane
(+1) 416 671 8089 or (+1) 520 850 7529