TORONTO, ONTARIO–(Marketwire – Jan. 8, 2013) – Samco Gold Limited (TSX VENTURE:SGA) (“Samco Gold” or the “Company”) is pleased to announce that it has made significant progress at its Corina project where the Cerro Cubilete prospect is now ready for preliminary drill testing.
The Company´s intention to carry out geological mapping, additional sampling, hand-dug trenching, and a ground magnetic survey at its Cerro Cubilete silver prospect on the 5,000 hectare Corina Project in Santa Cruz province, Argentina, was announced in the previous release on September 4, 2012. This work has now been completed. As a result, the Company has a better understanding of the geological controls to the mineralization, and the prospect is now ready to be drill tested.
Cerro Cubilete lies within the Corina project (comprising the Corina, Corina 1 and Mercia tenements) held by Samco Gold, adjoining the Cerro Moro project owned by Yamana Gold (Figure 1). Cerro de la Mina, also shown on Figures 1, 2 and 4, is an adjacent area of small workings which expose minor barite and Mn oxide mineralization.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/samco_gold_figure01.pdf
Rock chip sampling
To date, Au and Ag results have been received for 292 float and outcrop samples from the Corina and Mercia tenements. Analyses for 38 other elements, including pathfinders, have been received for 213 of these.
There are currently 116 rock chip samples of float and outcrop which correspond to the Cerro Cubilete prospect. Some statistics of these samples are provided in the following table:
|Ag cut-off (g/t)||No of samples||% of total||Av Au||Av Ag||Av Au equivalent|
These samples were collected to define the extent of the mineralization, and therefore cannot be regarded as representing the average grade of the zone. However, it is encouraging that half the samples are above a cut-off grade of 55 g/t Ag and average approximately 460 g/t Ag. For a Ag:Au equivalence factor of 55:1, the average of all Cerro Cubilete samples is 4.5 g/t Au equivalent, and half of them average 8.6 g/t Au equivalent.
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/samco_gold_figure02.pdf
In November and December, 2012, consulting geologist N.J. Callan was contracted to carry out geological mapping at 1:5000 scale within the area of the existing ground magnetic survey. This mapping, covering approximately 10.5 km2, has defined the volcanic sequence and predominant geological structures in the area mapped.
Figure 3 shows part of this mapping, over the Cerro Cubilete-Cerro de la Mina area, and also shows a thematic representation of Ag grades from rock chip samples.
Unit Jv_x(wd), bx is a moderately to strongly welded and commonly brecciated rhyodacitic ignimbritic tuff. It is overlain by well-stratified tuffaceous volcanics and volcaniclastics coded Jv_t, vs and Jv_lt on Figure 3. The well-stratified unit is in fault contact with a homogeneous, moderately to strongly welded ignimbrite containing quartz, feldspar and biotite phenocrysts (Jv_txf, wd) which lies to the north and probably extends below the (currently dry) lake shown on Figure 3.
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/samco_gold_figure03.pdf
The Cerro Cubilete mineralization occurs in a NNE-trending zone conspicuous for the development of earthy hematite. The zone is 300m long and 75m wide at its northern end, and tapers towards the south. It is almost orthogonal to WNW-trending faults which appear to form the northern and southern limits of the mineralization and which also form fault boundaries between contrasting volcanic units.
At its northern end, the zone contains many colloform-crustiform banded quartz veins mostly less than 30 cm but occasionally (as displaced blocks) up to a metre wide, hosted by the brecciated rhyodacitic ignimbrite. At the southern end, mineralization appears to be replacing a veneer of the overlying well-stratified tuff.
Ground magnetic survey
A ground magnetic survey was carried out in September, 2012 by Quantec Geoscience Argentina S.A. over the area shown in Figure 2, which covers approximately 16 km2. The survey was run on E-W gridlines spaced 50m apart.
N Callan commented that ‘the survey shows a broad, NW striking magnetic low feature coincident with argillic alteration within the WNW to NW striking Cerro Mina-Cerro Cubilete structural corridor, probably reflecting pyritization and destruction of any magnetite in the host units within the altered corridor’.
This structural/magnetic corridor localizes many small workings for Mn and barite in altered, brecciated rhyodacitic ignimbrite, in the Cerro de la Mina zone, less than 1 km north-west of Cerro Cubilete. Rock-chip sampling in this area has not returned significant Ag or Au values, but other elements which include As, Mn, Fe, Ba, Mo, and base metals show similar anomalous values to Cerro Cubilete (Figure 4). Additional work is required to define the significance of the Cerro de la Mina mineralization.
To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/samco_gold_figure04.pdf
Mineralization of similar style to Cerro Cubilete has not been publicly reported at the adjoining Cerro Moro property to the south. However the La Negra zone of the former Mirasol Resources Joaquin property, recently acquired by Coeur d’Alene Mines Corporation, also in the Deseado Massif, (www.mirasolresources.com, accessed on December 29, 2012) is an example of a silver deposit combining stratiform manto-like components and a higher-grade, steeply-dipping feeder zone, with mineralization in the form of stockwork veinlets and breccias in both these elements.
There is scope for down-dip continuity of mineralization at Cerro Cubilete both as manto-like bodies on the easterly-dipping contact between brecciated ignimbrite and well-stratified tuff, and as steeply-dipping bodies on an inferred fault between these two units. The company will aim to test both these possibilities with a core-drilling program in the first quarter of 2013. Holes will be drilled on three WNW-oriented sections across the outcropping mineralization (three holes on each of three sections spaced 50-60m apart across the zone) for a total of approximately 1650m. Results of this initial program will determine ongoing exploration.
Commenting on the recent results Paul Richardson, Chief Executive of Samco Gold said:
“The early indications at Cerro Cubilete are encouraging and we look forward to receiving further information as a result of this targeted drill program. Our current field activity is not limited to just Corina as, elsewhere in our portfolio, we are carrying out preliminary field work on the Ginette and Giancarla projects in the West of the region, which have revealed some promising targets for follow up, as well as the ongoing surface exploration program at El Dorado Monserrat which is adding considerably to our understanding of the project and yielding some exciting new targets for future drilling.”
The exploration program is directed by Samco Gold’s Senior Geologist, Lic. Eduardo Falloni advised by Mr. David Shatwell who is a Fellow of the Australian Institute of Geoscientists. Sr. Falloni has over 30 years’ experience of exploration geology throughout Argentina including significant experience within the Deseado Massif. Mr. Shatwell is a Qualified Person within the meaning of Canadian National Instrument 43-101 and has reviewed and approved the above technical disclosure.
The above Au and Ag assays were performed on rock chip samples by Alex Stewart Argentina S.A., using fire assay with atomic absorption finish on 50 gram pulp samples. Sample locations are in Gauss-Kruger coordinates, using the Campo Inchauspe datum, and were acquired by hand-held GPS with an estimated accuracy of approximately 5m.
About Samco Gold Limited
Samco Gold’s principal business is the acquisition, exploration and development of precious metals resource properties in South America. The Company’s principal mineral property is the El Dorado Monserrat epithermal gold project, located in the Deseado Massif region of Santa Cruz Province, Argentina. The Company’s goal is to become a producer of gold through the exploration and development of El Dorado Monserrat. Samco Gold also owns a portfolio of other mineral exploration properties in the Deseado Massif including the Corina, Yasmin 1, Judite 1 and Ginette and Giancarla projects.
Additional details on the Company are available on SEDAR (www.sedar.com).
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements which can be identified by the use of words “commenced”, “scheduled”, “expect”, “goal”, and phrases or statements that certain actions, events or results “may”, “would”, or “will” be taken, occur or be achieved. Information concerning the interpretation of drill and other exploration results may also be considered forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the results of due diligence activities, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in Samco Gold’s Prospectus dated June 27, 2011 filed and publicly available under the Company’s profile on the SEDAR website at www.sedar.com. Although Samco Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), accepts responsibility for the adequacy or accuracy of this release.