Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

November 19, 2009 12:34 ET

Azteca Gold Announces Two Mile Down-Hole Geophysics Update

SPOKANE, WASHINGTON--(Marketwire - Nov. 19, 2009) - Matthew Russell, President of Azteca Gold Corp. ("Azteca" or the "Company") (TSX VENTURE:AZG) announces the publication to its website of an independent analysis that summarizes the significant findings of a recent down-hole gravity geophysics survey of hole DDH-005A/B (note: DDH-005B begins at 3900 FT in hole DDH-005A) from 600 m to 2850 m and the upper portion of DDH-006 from 150 m to 450 m at its 50% owned Two Mile Project. Richard Nanna, the Company's QP, has reviewed and has accepted as technically accurate the Scintrex gravilog data, with all relevant correction factors applied, as well as the report dated November 16, 2009 (the "Report") by Geoaviation LLC, an arms-length geophysical consulting company located in Chandler, Arizona, which summarizes the forward modeling conducted on this Scintrex down-hole gravity data. Down hole geophysical surveys are done in an effort to identify, through the differences in gravity measurements, layers or masses of mineralized material around or immediately below the drill hole.

Significant Gravity Anomalies Found

Geoaviation LLC documents several significant gravity anomalies in hole DDH-005B: (1) 1312-1374 meters (light blue body in figures 4 & 5), (2) 2170-2800 meters (dark blue stratigraphic layer or band in figures 3,6,7, & 8) including "higher density incursions" such as (3) red body in figures 6, 7, & 8 and (4) green body in figures 7 & 8 between 2550-2660 meters.

Anomaly (1): After reviewing the core in the region of this anomaly, Mr.Nanna has concurred with management's plan to assay a previously un-assayed portion of the core from roughly 4300 FT to 4500 FT which includes this interval from 1312-1374 meters. The author of the Report suspects a localized body denser than the immediately adjacent strata above and below it. Mr. Nanna stressed, "Further drilling, assaying, and analysis will be required to confirm what the excess mass consists of."

Anomaly (2): The author of the Report suspects a much broader layer of strata from 2170-2800 meters that is consistently elevated above the adjacent rock densities. The author further documents specific anomalies within this layer which may represent offset "excess masses" such as that given by the red body in figures 6,7, & 8. A significantly larger anomaly was documented by the author as the green body in figures 7 & 8 between 2550-2660 meters. After reviewing the core in the region of this anomaly, Mr. Nanna has concurred with management's plan to assay a previously un-assayed portion of the core from roughly 8300 FT to 8700 FT which includes this interval from 2550-2660 meters. Mr. Nanna stressed again, "Further assaying, analysis, and drilling will be required to confirm what the excess mass consists of."

Assay Plan

Based upon the geophysics conducted to date on the Two Mile Project, Mr. Nanna has recommended that the Company conduct an extensive program of assaying of drill core for the purpose of analyzing the various anomalies to the extent possible before new additional drilling is begun. The Company has already begun this program, and as financing permits plans to assay for target minerals such as Pb, Zn, Ag, Cu, and Au as well as for carbonate ion CO3 and relevant carbonate anions Ca, Fe, and Mg in the following sections:

Anomaly (1): Initially in DDH-005B and later in DDH-005A from 4300 FT to 4500 FT with enlargement of the interval if economically significant assays are confirmed. Mr. Nanna may recommend assaying a similar interval in DDH-006 prior to a gravilog re-survey of DDH-006 based on a visual inspection of the core in this interval.

Anomaly (2): Initially in DDH-005B and later in DDH-005A from 8300 FT to 8700 FT with enlargement of the interval if economically significant assays are confirmed. Mr. Nanna may recommend assaying a similar interval in DDH-006 prior to a gravilog re-survey in DDH-006 based on a visual inspection of the core in this interval.

Anomaly (A&B): Mr. Nanna has recommended that the Company re-visit the IP (induced polarization) geophysical anomalies upon which the 2007 core drilling was conducted. Although Mr. Nanna has found nothing economically material to report in the assays of these 4 core holes (DDH-001, DDH-001A (DDH-001A is the top 1595 FT of DDH-005A), DDH-002, and DDH-003), he recommends that the Company conduct enough assaying of the upper portion of holes DDH-005 and DDH-006 to attempt to tie the IP anomalies together with the gravilog surveys of DDH-005A/B and DDH-006.

Anomaly A: To this end, Mr. Nanna has identified an interval in DDH-005A from approximately 1600 FT to 2000 FT to assay as well as DDH-006 from approximately 1500 FT to 2000 FT. Mr Nanna has concurred with management that Figure 1 of the Report suggests a significantly higher rock density above 600 meters. This target interval coincides with the higher intensity of the IP anomaly of line A of the Quantec geophysics conducted in 2006 and which IP line is in close proximity of both DDH-005 and DDH-006 collars.

Anomaly B: Also to this end, Mr. Nanna has recommended the Company channel sample any adits or exploration drifts such as the Harlow exploration drift and any other nearby exploration drifts which may be used for further near-surface gravity surveys which can be tied into the down-hole gravity surveys. The Harlow is an approximately 300 FT generally WWN striking exploration drift located approximately 1500 FT north of the collar of DDH-006.

DDH-006B Geophysics Plan

The Company is in the process of scheduling with Scintrex a near-term re-logging of the gravity survey conducted on DDH-006. Logging above 600 meters in hole DDH-005 is also being looked at. As mentioned in a recent press release, the Company is looking at conducting a surface gravity survey and near surface gravity survey in nearby exploration adits and drifts such as the Harlow.

Further Testing Suggested by QP

The author of the Report has recommended and Mr. Nanna has requested, financing permitting, that the Company perform a gamma-gamma survey on the two core holes DDH-005 and DDH-006 in order to correlate actual density of the core at the bore-hole with the densities found by the gravilog survey in the vicinity of the bore-hole. The Company is looking into how this gamma-gamma survey may be conducted in conjunction with the gravilog re-survey of DDH-006B.

Drilling Plan

The Company plans to finish the re-logging of DDH-006 and an accompanying report prior to making a decision on future drilling plans. Currently the Company is working with its drilling contractor to put together cost estimates on drilling shallower targets as identified by the Report as given above as well as the deeper targets, including continuing to greater depth of DDH-005B and DDH-006B.

Summary

The Company has until recently been focused primarily on massive sulfide targets at depth. Recent gravity geophysical results, as well as a re-assessment of previous IP geophysics work, has given the Company cause for a second focus on carbonate hosted disseminated mineralization, especially as it may apply to potential silver mineralization and to potential mineralization much higher in the drill holes (closer to surface) than previously considered. "Our reasoning behind using gravity geophysical surveys in our deep core holes was to detect differences in density in the rocks in the area of the holes, then relating those changes to changes in density expected by sulfide mineralization and alteration." says Matt Russell, President of Azteca, "We are very pleased to see gravity anomalies that may be used to target further exploration drilling."

The technical and scientific information contained in this news release has been prepared and reviewed by the Company's temporary QP Richard Nanna, who is also a director of the Company.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 199,461,432

Neither 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.

Contact Information

  • Azteca Gold Corp.
    Jon Slizza
    VP of Finance and Investor Relations
    Cell: (509) 981-2020
    info@azteca-au.com