Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

September 25, 2009 11:33 ET

Azteca Gold Corp.: Two Mile Down-Hole Geophysics to Start Week of September 28, 2009 and Outstanding Payable Settlement Finalized

SPOKANE, WASHINGTON--(Marketwire - Sept. 25, 2009) - Matthew Russell, President of Azteca Gold Corp. (TSX VENTURE:AZG) (the "Company") wishes to announce that the previously announced (August 7, 2009) arms-length agreement to settle $749,926 (US$700,000) in outstanding payables owing to Ruen Drilling Inc. by the issuance of 6,249,384 units has been finalized. Each unit consists of one common share and a warrant exercisable at $0.25 for 2 years.

These shares are subject to a voluntary pooling agreement that will see the holder agree to vote with management for a period of 2 years. These securities are subject to trading restrictions until January 19, 2010.

The Company is pleased to report that Scintrex personnel will begin the week of September 28, 2009 a down-hole gravity survey in holes DDH-005B and DDH-006B at the Company's 50% owned Two Mile Project in the Silver Valley of Idaho. Scintrex is prepared to surpass their advertised 2,000 meter depth capability and will meet the Company's higher depth requirements. DDH-005B is currently at a depth of 10,243 FT (3,122 meters). DDH-006B is currently at a depth of 11,345 FT (3,458 meters).

Scintrex is the developer of a new borehole gravity meter for mining and geotechnical applications, designed to log inside NQ drill rods to with a sensitivity of better than 5 μGal, and operable in deep boreholes inclined from 30 degrees off horizontal to vertical. The field tests of the prototype probe were successfully conducted for a number of sponsor companies in 2008 and 2009. A recent paper detailing the gravity meter projects and technology was published by Preview, The Magazine of the Australian Society of Exploration Geophysicists in their April 2009 issue, #139, pages 34-38 and is available to view online at http://www.publish.csiro.au/nid/229/issue/5037.htm.

Gravity measurements inside boreholes provide evidence of density variations both in the immediate vicinity and at a distance from the hole. Scintrex's development of a new borehole gravimeter will, for the first time, allow the application of gravity logging in typical mining and geotechnical boreholes.

Primary applications of the Gravilog system in mining include the sensing and mass-estimates of massive sulphide bodies, either intersected by or remote from the hole; and accurate bulk density measurements of formations intersected by the hole More information on deep gravity meter capability can be found at their sister company website http://www.microglacoste.com/bhg.htm or http://www.scintrexltd.com/borehole.html".

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: 189,243,715

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
    (509) 981-2020
    info@azteca-au.com