Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

September 14, 2009 12:56 ET

Azteca Gold Corp.: Two Mile Clarification Update Regarding QA/QC Protocols, Regulatory Reviews and Trading Resumption

SPOKANE, WASHINGTON--(Marketwire - Sept. 14, 2009) - Azteca Gold Corp. (the "Company") (TSX VENTURE:AZG), is issuing this news release as a result of a review by the Alberta Securities Commission (the "ASC") and the TSX Venture Exchange (the "TSXV"), to clarify the Company's Quality Assurance / Quality Control ("QA/QC) protocol and previous disclosure respecting drilling results on its Two Mile Project located in Idaho, USA.

Company's Qualified Person ("QP")

The Company advises that effective immediately, Matt Russell will no longer be acting as the Company's QP. A review by the ASC determined that Mr. Russell did not have the formal education and relevant experience to meet the requirements of a QP for the Two Mile Project. Mr. Russell, President, CEO and Chairman of the Company, will oversee the continued exploration of the Two Mile Project under the guidance of the Company's QP.

Mr. Richard Nanna, a Company director and a professional geologist (State of Washington, Certification No. 1398) has temporarily assumed the role of QP for the Company. Mr. Nanna's responsibilities as a QP will include review of all Two Mile Project technical disclosure as required by National Instrument 43-101, and will be responsible for the over sight of the continuing drill program including recommendations of future drilling programs. Azteca plans to hire a staff QP as soon as possible to assume these duties.

QA/QC Protocol

The Company advises that exploration work conducted on the Two Mile Project did not follow CIM Exploration Best Practices guidelines (the "Guidelines"). After reviewing the Company's exploration work, specifically drilling practices and procedures, TSXV determined that the Company has not been in full compliance with the Guidelines. In particular while drilling, core handling and core sampling on the Two Mile Project, a QP or a qualified geologist has not been present, core logging has not been conducted by a geologist and an acceptable QA/QC protocol was not used.

The Company will be immediately rectifying the deficiencies to fully comply with the Guidelines by:

- the immediate hiring of a qualified staff geologist to oversee exploration onsite and monitor the QA/QC protocol for the Company and who will become the Company's QP for the Two Mile Project;

- immediately document and improve its QA/QC protocol;

- immediately implementing improvements in the QA/QC consisting of, among other things, complete logging of all core, ensure industry standard sampling procedures are followed, ensure current records are kept, safeguard chain of custody, complete data analysis, verification and data base procedures, surface and down hole surveys, and validating data with check assays based on standards, reference, and duplicate samples.

Improvements to the QA/QC protocol are necessary to ensure high integrity of information received during the exploration process.

Continuous Disclosure Review

As a result of a continuous disclosure review, on June 26, 2009, the ASC advised the Company that it was required to clarify certain technical and geological information. The Company cautions that any previous statements in press releases or interviews suggesting mineable nature or potential economic viability, or any inferences about metal grades based on geological descriptions of massive mineralization, sulfides or other mineralization types are premature and should not be relied on.

The applicability of a Sullivan-type bedded massive sulfide deposit model or other models, such as the model of a "massive sulfide stock" which may be found "in or immediately below the carbonate unit" and the citation of a "Carlin Trend" model used in reference to anomalous gold near the bottom of DDH-006A, in the area of DDH-005 and DDH-006 is uncertain and needs support. To establish which geological model(s) are applicable to the deep sulfide mineralization additional work is required, including geological core logging, geological and geochemical analysis, and additional drilling results.

The Company has previously described its objective of developing resources by step-out drilling, including wedge-off holes. The Company cautions that the determination of a mineral resource depends on grades, widths and continuity of mineralization, as well as a preliminary economic study of potential minability of the identified mineralized geometry at the particular depth.

Reporting of zinc-lead assay results

It is the opinion of the Company's QP, Richard Nanna, that all material sulfide assays reported to the Company by the assay lab have been disclosed for holes DDH-005A to depth 8,784 FT, DDH-005B to depth 8,744 FT, and DDH-006 to depth 11,173 FT. The assay values as presented by Matt Russell have been presented accurately but it is the opinion of the qualified person that certain further assays as presented below will provide clarification.

The Company continues to drill deeper in DDH-005B and DDH-006B with the objective of replicating its success in DDH-005A.

Assay Clarification

In preparing this clarification of assays, the Company's QP, Richard Nanna, has reviewed relevant assay and other data provided by the Company.

DDH-005A:

On January 13, 2009 the Company reported that the 7,937.6 to 7,953 interval (15.5 ft) in DDH-005A graded 40% zinc, 7.4% lead and 104.7 grams of silver per tonne. This was based on the assays reported by American Analytical Services Inc. on January 7, 2009. On January 19, 2009 the company received results of check assays for the high-grade sulfide intersection in DDH-005A from Loring Laboratories Ltd. Nine samples in and closely adjacent to the sulfide zone were check assayed by Loring and there were no significant variances to the previously reported American Analytical Services results.

DDH-005B:

Although the Company does not expect any material sulfide assays to a depth of 8744 FT, the Company is currently drilling deeper in DDH-005B in hopes of intersecting similar massive sulfides as discovered in DDH-005A. The Company has no geologic support at this time for a structural or mineralogical tie between massive sulfide mineralization in DDH-005A and potential for sulfide mineralization in DDH-005B.

DDH-006:

The Company's press release dated February 24, 2009 contained a typographical error. The stated depth of mineralization in hole DDH-006 should have been 5360 FT, not 5600 FT. The same news release described this mineralization as "continuous and intermittently semi-massive". In a press release dated April 2, 2009, the Company disclosed assay results for this section of DDH-006 of high iron sulfide grades but there were no lead-zinc-silver grades of potential economic interest.

In its June 18, 2009 press release the Company reported a lower zone in DDH-006 as a "second major mineralized zone" from 10,850 to 11,108 ft. The Company is not expecting high-grade zinc-lead intersections from the interval from 10,850 to 11,108 in DDH-006. The Company identified bournonite and possibly polybasite, and said the mineralization has been "visually increasing in concentration with depth", and "within the last 30 ft or so this mineralization has become intermittently massive". The assays given within this interval in the July 3, 2009 press release, although potentially significant as indicators of adjacent mineralization, do not represent, at these depths, "major mineralization" as described in the press release. Although the elements necessary for bournonite are present in this interval, the Company has not yet confirmed through further analysis that bournanite is present. A dark silicate mineral may have been mistaken for polybasite, which also has not been positively identified in the drill core. Referral to the "intermittently massive" character of this zone is uncertain and cannot be relied on.

The Company is doing further analysis to better understand what dark mineral is present in this interval because the qualified person understands that this dark mineral or a derivative of it may also be responsible for the mistaken identification of tetrahedrite in the interval 10,000 - 10,180 FT and the interval 10,500 - 10,600.



Summary Assays for Various Intervals in Hole DDH-006:

10,000 - 10,181 FT Interval- DDH-006:
Element Average Minimum Maximum
(ppm) (ppm) (ppm)
Au N/A less than 0.005 0.103
Ag N/A less than 2.0 less than 2.0
As 21.5 less than 5.0 97.8
Cu 25.2 7.7 54.3
Pb 54.1 54.1 433
S 3871 less than 50 1.62%
Sb 8.8 less than 5.0 14.4
Zn 161 27.5 1110


Although the elements for tetrahedrite are present, including anomalous antimony (Sb), the qualified person believes a dark silicate mineral is most likely responsible for the mistaken identification of tetrahedrite. The Company is doing further analysis to identify what minerals are present in this interval.




10,500 - 10,600 Interval- DDH-006:
Element Average Minimum Maximum
(ppm) (ppm) (ppm)
Au N/A less than 0.005 0.111
Ag N/A less than 2.0 less than 2.0
As N/A less than 5.0 19.1
Cu 24.1 3.5 80.2
Pb N/A less than 5.0 40.8
S 1140 less than 50 3270
Sb N/A less than 5.0 less than 5.0
Zn 69.4 28.0 112


The Company's QP, Richard Nanna, believes a dark silicate mineral is most likely responsible for the mistaken identification of tetrahedrite. The Company is doing further analysis to identify what minerals are present in this interval.

The June 29, 2009 news release reported a "deep target" in DDH-006, a carbonate unit reported to be at least 90 ft thick. Sulfide related assays for this approximate 90 FT interval are as follows:



11,081.5 - 11,173 FT Interval:
Element Average Minimum Maximum
(ppm) (ppm) (ppm)
Au N/A less than .005 0.023
Ag N/A less than 2.0 less than 2.0
As 7.5 less than 5.0 24.5
Cu 32.0 2.5 144
Pb 10.7 less than 5.0 107
S 3360 206 9380
Sb N/A less than 5.0 12.2
Zn 52.2 14.0 144


The carbonate assays as given in the July 3, 2009 press release can be relied upon as representing a carbonate zone but there are not enough carbonate assays reported to date to support continuous anomalous carbonate over 90 FT. The Company is currently drilling DDH-006B to test the width and tenor of this carbonate zone.

Diamond drill core samples for the drill holes noted in this news release were processed per the Company's chain of custody controlled by Azteca personnel who transferred the samples directly to American Analytical Labs, located at Osborne, Idaho, an independent and fully accredited lab. The assay lab has provided assay results to only those within Azteca's control pursuant to the list provided to them by Matt Russell. Material assay results are considered preliminary by the Company until check assays are received.

Assay methods include fire assay for Ag and Au. ICP (inter-coupled plasma) was used for lead, zinc, copper, antimony, arsenic and sulfur.

The Company also wishes to advise that the TSXV has indicated that the shares of the Company are scheduled for resumption to trading effective the opening Tuesday, September 15, 2009.

The technical and scientific information contained in this news release has been prepared and reviewed by the Company's QP Richard Nanna.

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: 182,994,331

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 Corporate Finance and Investor Relations
    Cell: 1-509-981-2020
    info@azteca-au.com