Abzu Gold Ltd.

Abzu Gold Ltd.

January 25, 2013 08:00 ET

Abzu Gold Announces Drilling Mobilization for 2013, Targets Additional Satellite Gold Mineralization at Zupeliga

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2013) - Abzu Gold Ltd. ("Abzu" or the "Company") (TSX VENTURE:ABS)(OTCQX:ABZUF) is pleased to announce the start of mobilization for the 2013 drilling season at Nangodi. The Company has contracted Geodrill Limited to drill approximately 5,000m of combined reverse circulation (RC) and diamond drill core to extend known mineralization along the mapped 1.2km strike (Abzu press release February 9, 2012) and fill-in between existing holes. The data collected from this program will enable the Company to proceed with a maiden gold resource estimate and to begin planning a feasibility study.

While Abzu's focus is on fast-tracking development of Nangodi, there are numerous areas of mineralization in the vicinity and one known as the Zupeliga target is a good example of near-surface mineralization which has the potential to provide additional gold resources for future mining activity (Figures 1 and 2). This mineralized zone lies approximately 10 km southwest of Nangodi in comparable host rocks. Soil sampling by AfricWest in 1997 and Etruscan Resources in 2007 identified attractive levels of gold over an area 500m x 400m with apparent continuity to the northeast and southwest (Figure 3). Trenching and Rotary Air Blast (RAB) drilling of this area revealed a northeast-dipping gold-bearing zone 450m long and tens of meters wide with best intercepts of 21.0m @ 2.31 g/t Au and 18.0m @ 3.35 g/t Au (Figure 4). Splits from several of these samples have been sent for assaying to verify historic results. Geologic mapping by Abzu staff shows that the mineralized zone follows a broad zone of silicified and altered volcanic and sedimentary rocks with associated chemical sediments which are traceable through folds for another 2,000m along strike to the south and at least another 600m to the north.

Highlight gold intercepts in Etruscan drill results at Zupeliga
Hole From (m) To (m) Interval (m) Grade (g/t) Au
NRB-08-399 24.0 31.5 7.5 1.00
33.0 40.5 7.5 1.82
NRB-08-400 6.0 25.5 19.5 1.24
NRB-08-404 6.0 27.0 21.0 2.31
including 15.0 24.0 9.0 3.46
28.5 30.0 1.5 0.36
33.0 34.5 1.5 0.51
NRB-08-408 19.5 30.0 10.5 1.00
NRB-08-409 0.0 18.0 18.0 3.35
* All data above is historic and was collected by Etruscan Resources Ghana Limited, now a part of Endeavour Mining Corporation.

Figure 1. Regional geologic map showing the Nangodi and Yameriga concessions: http://media3.marketwire.com/docs/abs-0125-fig1.pdf

Figure 2. Zupeliga geochemical map showing gold in surface samples and the mineralized zone intersected in historic (2008) Etruscan RAB drill holes: http://media3.marketwire.com/docs/abs-0125-fig2.pdf

Figure 3. Geologic map of the Zupeliga area showing the location of Etruscan drilling: http://media3.marketwire.com/docs/abs-0125-fig3.pdf

Figure 4. Etruscan drilling with key cross sections showing results: http://media3.marketwire.com/docs/abs-0125-fig4.pdf

Tim McCutcheon commented: "Nangodi as a project has been explored by several operators over the past 20 years. Additionally, it was an operating mine in the first half of the last century. Although to-date there has not been a gold resource published for the property, it is more de-risked than it seems given the volume of past drilling and trenching. Our intent in 2013 is to link together the work done by past operators and compile all the data into one resource number to give investors a better idea of where Nangodi stands today and what potential it has for resource expansion in the future. In addition, Nangodi is in a very prospective neighborhood with several adjacent targets that could further increase the resource, Zupeliga being the best studied of them. Much like Kinross' Chirano success story in Ghana, Nangodi seems to have a network of several satellite zones that are all close enough to potentially be one mining operation in the future."

Qualified Person and Quality Control/Quality Assurance

Professional geologist (AIPG cert. # 10821) Dr. Paul Klipfel, President and a Qualified Person as defined by National Instrument 43-101, has reviewed the data and prepared the material in this disclosure. Dr. Klipfel has a PhD in economic geology and more than 35 years of relevant experience as a mineral exploration geologist. He is a Certified Professional Geologist [CPG 10821] by the American Institute of Professional Geologists. Dr. Klipfel is not independent of the Company as he is an officer and shareholder.

Dr. Klipfel did not supervise the Etruscan drill program at Zupeliga nor the subsequent laboratory tests. However, there is no reason to believe that the results are not accurate. Dr. Klipfel has approved the content of this release.

On behalf of the board of directors of Abzu Gold Ltd.

Tim McCutcheon, Chief Executive Officer

Cautionary Statements

This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Abzu's public documents filed on SEDAR at www.sedar.com. Although Abzu believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, Abzu disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction; nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons absent registration or an applicable exemption from registration requirements.

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 press release, which has been prepared by management.

Contact Information

  • Abzu Gold Ltd.
    Tim McCutcheon
    Chief Executive Officer