Angel Gold Corp.
TSX VENTURE : ANG

Angel Gold Corp.

August 15, 2016 10:20 ET

Angel Gold Corp.: Soil Sampling Reveals Extended Silver Anomaly Along Strike of Iguanacito Gold/Silver Vein

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 15, 2016) - Angel Gold Corp. (TSX VENTURE:ANG) ("Angel" or the "Company") is pleased to announce that an 80m wide soil silver anomaly of greater than 200ppb Ag (peak value of 360ppb Ag) has been encountered extending the potential of the Iguanacito Prospect further along strike to the northwest after a gap of approximately 250m with essentially no outcrops and relatively weak surficial gold-silver response. These results are of the same tenor as those obtained in the initial 2015 soils line over the discovery outcrop at Iguanacito. An Induced Polarization geophysical program is being planned to test at depth and along strike of the high-grade silver and gold mineralization discovered in Angel's surface exploration program in the area to confirm the potential size and continuity of the exploration target.

Though high-grade silver anomalies were encountered, there was no significant gold response obtained in the current sampling - with a peak gold in soils value of only 10.9 ppb within the sampled area. Significantly, however, artisanal prospecting pits have been located within the area of the silver soil anomaly.

A table showing all gold and silver soils results is included as Table 1 at the end of this release.

"We are highly encouraged with the soils results indicating a second zone of mineralisation along strike from the currently identified Iguanacito zone," says Stella Frias, President and CEO of Angel Gold Corp. "We are now planning a geophysics (Induced Polarization) program to test for subsurface targets in the silver rich Iguanacito area. We believe that this will confirm additional mineralized zones at depth and support a much larger opportunity than what is visible from the high grade silver surface samples."

Mineralization along veins and structures commonly occurs discontinuously in high grade ore shoots separated by low grade or barren intervals of vein/structure, so the apparent gap in interesting response at the surface is common where much larger and contiguous mineralized zones may exist below surface.

This soil sampled area is generally underlain by the same quartz-rich rocks (quartz diorite and granodiorite) that host the majority of the intense quartz sericite and silica alteration throughout the Iguanacito Prospect. However an outcrop of non-weathered low-quartz felsic diorite intrusive was located flanking the main anomalous soils response, with the mafic (dark minerals) phase of this rock having been almost totally destroyed and heavily replaced by pyrite (sulfidation). This confirms there having been a flow of sulphur-rich fluids through the rock, which often indicates proximity to more intense alteration and mineralisation. This intrusive is very different to the more quartz-rich intrusives that host the bulk of the sericitisation and mineralization at Iguanacito, and may represent a younger phase. It is considered highly encouraging to find a sulfidised intrusive present within the mineralized system, where the source of the alteration is thought to be from a younger intrusive phase.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/angel_gold_corp_aug15_2016_figure1.pdf

Significance of the results

The high silver and gold values returned to date at Iguanacito occur to the southeast of an indicated northeast trending offsetting fault. Some difficulty had been encountered in locating and tracing the continuations of the two specific mineralized alteration zones northwest of this indicated fault (with additional minor vertical faulting being suspected) and work is currently ongoing in this area between the soils lines and the fault, with highly encouraging pyritic zones being encountered (results pending) in trenching (trench 10-extended and trench 21). It is possible that this fault offset occurs at a slight flexure in the structure resulting in a slight change of strike direction on the northwest side of the fault. The accompanying map shows the located exposures of alteration northwest of the fault without any interpretation attempting to link them.

The most northwestern rock results received to date, including from two recently discovered heavily overgrown artisanal miner adits, and shown on the soils silver result map above, are geologically encouraging. The best result of 0.5m @ 0.94 g/t Au 56.5 Ag was in an adit driven on a quartz stockworked silicified zone containing a central 15cm pyritic quartz vein, the stockworked silicified zone itself being hosted in intensely sericitised granodiorite. Sampling from the previously reported (press release dated 20 June 2016) trench 11 returned 2.85m @ 0.05g/t Au, 9.26g/t Ag within the same alteration zone. A single sample from an adit in the parallel northern zone returned a barren assay, whilst a newly discovered third alteration zone, a further 60m southwest of the previously identified zones, is an intense sericite alteration zone, contained no visible mineralization in the exposure and wasn't sampled.

All new and previously reported rock samples in this area are included as tables 2 and 3 respectively at the end of this release.

The original ridge and spur soils silver anomaly over the Iguanacito discovery outcrop was 120m @ >200ppb Ag (peak value of 7100 ppb Ag), within which was a coincident 50m wide gold anomalous core of >20ppbAu, and tellurium values to a maximum of only 110ppb.

The presence of the 80m wide soil >200ppb silver geochemical response on the furthermost sampling line could reflect the commencement of another zone of near surface mineralization along the continuation of the Iguanacito structure.

The 200ppb Ag anomaly is haloed by a zone of >100ppb silver which also extends along the northeastern ends of the other two soils lines coincident with the indicated position of the currently known alteration zones (shown in figure 1) Values of tellurium in soils of this north-westernmost line are also consistently anomalous (average 247ppb, peak 560ppb) across the entire length of the line, extending over and flanking the soil silver anomaly. Elevated tellurium is typically seen within the El Porvenir tenements associated with areas of high gold and silver values, though with a much higher gold to silver ratio than has been generally been observed to date at Iguanacito.

The significant increase of width (greater than 210m) of the 100ppb silver anomaly with an 80m wide core of >200ppb Ag, the association with elevated tellurium, as well as the presence of sulfidised intrusive (a younger phase of intrusive?) warrants a continuation of the soils sampling to the northwest, followed by pitting and trenching. The general similarity of soil element values over the discovery outcrop of Iguanacito with the soil anomalism reported here confirms the significance of this soil indicated mineralized zone extension and justifies the need for further sampling along strike to the northwest.

Sampling

Two northeast-southwest trending soils lines were cut and sampled at distances of 100m and 300m respectively to the northwest of an intensely sericitised outcrop in a stream bed (Agorobo Creek), currently the northwesternmost mapped extent of the Iguanacito alteration zones. Additionally the crest of a northwest trending ridge occurring between these two cut lines was also sampled.

Sampling was at 10m intervals, and was taken from the uppermost B Horizon, with vegetation and the humic A horizon being removed and sampling of generally the top 5cm only of the underlying saprolite/soil. Coarse material was removed by hand (or 3mm screen, where possible). Samples were submitted as a single batch, and were dried, disaggregated and sieved to -80# (177micron) at ALS Laboratories in Medellin.

Analysis / Quality Control and Quality Assurance

Soil samples were submitted to ALS Medellin for preparation and assayed by ALS Peru. Samples were prepared using method PREP-41 with drying at <60°C/140F and sample sieved to -180 micron (80 mesh). The soil geochemical assay package ST43-PKG was used, with Au by 25g aqua regia digestion and ICP-MS finish, paired with multi-element aqua regia digest super trace 51-element ICP-MS. There were no overlimits to reassay. Angel Gold submitted blanks and field duplicates with the sample batches as part of its QAQC program.

Rock samples were submitted to ALS Medellin for preparation and assayed by ALS Peru. Gold was determined using Fire Assay AA finish (method Au-AA23), with gold samples >10 g/t being reassayed by Fire Assay Gravimetric Finish (method Au_GRA21). Silver was determined by 51 element ICP-MS (method ME-MS41) with silver greater than 100g/t samples being re-determined by atomic absorbtion (method Ag-OG46). Angel submitted blanks, duplicates and standards with the sample batches as part of its QAQC program.

Qualified Person

Mr. James G. Burns, P.Eng, a Qualified Person under National Instrument 43-101 standards and a technical advisor to the Company has reviewed and approved the technical information contained in this news release.

About Angel Gold Corp.:

Angel is a Canada-based gold and silver exploration company focused on responsible development of mineral resources in Colombia, host to some of the world's largest gold deposits. Angel has been focused on acquiring and validating strategic mineral exploration opportunities in Colombia's best mining districts with the highest potential for new discoveries.

On Behalf of the Board of Directors of Angel Gold Corp.

Blanca Stella Frias, Director, President and Chief Executive Officer

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this news release.

The TSX Venture Exchange has not reviewed the content of this News Release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this News Release. This news release contains certain "forward- looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction described in this News Release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this News Release. We seek safe harbour.

TABLE 1:
ALL SOIL SAMPLE RESULTS FOR SELECTED ELEMENTS
SampleID East North RL Au ppb Ag ppb Te ppb Se ppm Cu ppm Pb ppm As ppm
B00301 538472 777168 659 1.3 80 50 2 8.3 4.7 3.8
B00302 538478 777176 656 1.5 130 30 1.9 8.4 5.7 8.1
B00303 538485 777183 652 2.6 260 30 1.7 5.9 5.1 22.2
B00304 538491 777191 649 1.1 30 30 1.4 4.7 5.5 3.1
B00305 538497 777199 646 2.5 50 40 1.3 9.4 15.2 3.7
B00306 538504 777206 646 3.1 150 40 1.8 7.9 7.2 4.8
B00307 538510 777214 645 1.3 90 50 1.4 4.8 5.7 3.8
B00309 538517 777222 648 1.5 160 40 1.5 3.2 4.1 2.8
B00310 538523 777229 643 1.8 100 60 1.2 4.5 5.1 4.4
B00311 538530 777237 640 1.4 200 40 1.5 3.8 4.9 4.4
B00312 538465 777160 658 1.1 130 40 1.9 10.1 5 3.2
B00313 538458 777153 654 1.3 110 40 1.6 8.9 5.5 3
B00314 538452 777145 647 0.7 30 10 0.5 9.6 6.9 1.1
B00315 538445 777137 648 1.7 90 30 1.5 4 3.8 2.2
B00317 538439 777130 645 1.6 70 60 1.3 3.5 3.3 2.1
B00318 538432 777122 647 1.3 90 70 1.4 4.3 3.9 2
B00319 538426 777114 650 1.5 60 70 1.7 1.7 3.1 3.9
B00320 538420 777107 652 1.6 80 30 1.4 2.8 4.5 5
B00321 538413 777099 658 1.4 140 30 2.3 3.3 4 5.1
B00322 538407 777091 661 1.6 90 30 1.6 2.9 5.5 5.1
B00323 538400 777084 664 5.3 80 40 1.6 5.1 6.9 12.4
B00324 538394 777076 667 2.2 60 50 1.7 9.5 7.2 7.9
B00326 538428 777203 678 4.6 80 40 2.9 4.5 3.7 3.7
B00327 538419 777200 680 10.9 70 50 2.2 3.5 3.1 3.3
B00328 538409 777198 681 3.1 70 30 1.8 2.6 3 4.1
B00329 538400 777194 681 4 50 30 1.8 2.6 3.3 7.6
B00330 538393 777186 681 3.8 30 50 1.8 3 3.5 4.1
B00331 538386 777179 680 4.6 70 60 2.2 2.6 3.6 4
B00332 538384 777169 680 3.5 50 40 2.1 1.8 3.2 4.3
B00333 538380 777160 681 3.8 60 50 2.1 1.6 3.3 4
B00334 538373 777154 680 5.5 40 70 2.3 1.7 4.2 8.6
B00336 538366 777145 680 6.3 50 30 1.6 1.7 2.2 5.9
B00337 538364 777136 680 3.2 50 40 2 1.8 2.5 5.3
B00338 538366 777126 680 4.6 60 30 1.9 1.9 1.9 6.4
B00339 538369 777116 678 3.9 70 40 2.2 2 2.4 5.2
B00340 538370 777106 678 2.5 60 50 2 1.5 2.4 6.7
B00341 538371 777096 676 2.3 40 50 1.7 1.4 3 8.9
B00342 538373 777086 674 2.5 40 40 2 3.9 5 12.4
B00343 538437 777209 675 2.3 90 40 3 3.2 4.3 3.5
B00344 538446 777213 673 2.9 90 40 3 6.1 4.1 3.6
B00346 538456 777214 671 1.6 70 40 2.3 3.8 2.9 2.9
B00347 538463 777221 668 2.3 80 40 2.1 4.2 3.6 3.1
B00348 538472 777226 666 3.9 100 40 2.2 3.1 3.6 3.4
B00349 538481 777231 665 8.2 160 30 2.1 5.2 6 4
B00350 538489 777237 663 2.4 150 40 2.3 7 5.3 4.4
B00351 538491 777247 661 1.6 70 40 1.5 4.1 3.1 4.3
B00352 538496 777255 659 1.6 100 30 1.3 3.5 3.3 3.1
B00353 538503 777263 659 5.8 120 20 1.6 14.4 6.5 3.1
B00354 538509 777271 659 1.9 90 30 1.2 25.3 8.8 2.3
B00356 538518 777275 659 4.6 130 270 2.4 34.7 8.5 3.8
B00357 538357 777314 632 2.2 150 170 1.7 4.3 3.3 8.3
B00358 538350 777306 632 4.5 220 190 1.4 7.7 11 11.4
B00359 538344 777298 632 3.3 360 220 1.7 10.3 4.4 19.8
B00360 538337 777291 633 5.1 300 210 1.6 9.6 5.3 23.2
B00361 538332 777284 636 4.2 340 120 1 4.7 4.8 13.6
B00362 538325 777276 641 1.9 270 100 1.2 4.8 4.6 7
B00363 538319 777269 649 2.5 310 180 2 3 3.8 7
B00364 538312 777261 653 2.7 200 200 2.6 2.5 3.6 6.8
B00366 538306 777253 653 2.5 220 220 2.4 2.7 3.4 6.8
B00367 538299 777246 654 1.6 160 180 2.3 2.5 3.1 5.8
B00368 538293 777238 648 1.8 150 290 2 11.7 4.6 4.6
B00369 538280 777223 653 3.3 110 390 2.3 24.1 6.8 9.3
B00370 538274 777215 656 3.6 90 450 2.9 19.3 6.9 9.8
B00371 538267 777207 660 3 100 560 2.9 11.7 7.5 7.3
B00372 538261 777199 663 2.5 110 250 2.9 9.9 6.3 5
B00373 538254 777192 668 2.5 90 250 2.7 6 4.4 3.3
B00374 538363 777321 629 3.2 160 140 2.1 3 3.5 8.6
B00376 538370 777329 626 2.1 110 160 2.2 3 3.5 5.5
B00377 538376 777337 624 2.7 180 150 1.8 3.2 3.1 5.5
B00378 538382 777344 620 2.3 210 240 2 5 3.7 7
B00379 538389 777352 612 2.2 130 260 1.7 4.7 3.5 5.4
TABLE 2
NEW ROCK RESULTS - NW CONTINUATIONOF IGUANACITO - CONTINUOUS CHIP ROCK SAMPLES
Location East North Length Au ppm Ag ppm As ppm Sb ppm Pb ppm Cu ppm Mo ppm
Adit 6 538602 777135 0.5 0.941 56.5 960 5.83 201 17.2 1.36
Adit 6 538602 777135 0.8 0.035 0.77 711 1.88 26 19.1 0.48
Adit 6 538606 777131 1 0.011 0.74 60.9 0.46 22.2 2.8 0.8
Adit 7 538589 777092 0.95 0.005 0.28 43.3 0.2 45.9 17.6 1.75
TABLE 3
PREVIOUSLY REPORTED ROCK ASSAYS - TRENCH TCO-011 CHANNEL SAMPLES
TrenchID From To Length Au ppm Ag ppm As ppm Sb ppm Pb ppm Cu ppm Mo ppm
TCO-011 0.10 0.90 0.80 0.019 0.2 7.3 0.07 6.5 39.1 1.89
TCO-011 0.90 1.70 0.80 0.005 0.37 7.7 0.08 6.8 12.4 0.61
TCO-011 1.70 2.55 0.85 0.008 0.73 10.8 0.1 13.7 39.6 0.64
TCO-011 5.50 6.50 1.00 0.005 9.63 29.8 0.18 8.1 51.3 4.98
TCO-011 6.50 7.50 1.00 0.012 4.91 42.5 0.25 13.6 40.8 3.45
TCO-011 7.50 8.35 0.85 0.136 13.95 51.4 0.26 39.8 56.7 1.03

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