Angel Gold Corp.
TSX VENTURE : ANG

Angel Gold Corp.

October 17, 2016 09:30 ET

Angel Gold Expands Exploration Program at El Porvenir to Drill Areas of High Grade Gold and Silver Anomalies

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 17, 2016) - Angel Gold Corp. (TSX VENTURE:ANG) ("Angel" or the "Company") is pleased to announce the next stage of its field exploration program at El Porvenir Project, located in the Segovia-Remedios gold belt, historically the largest gold producing region in Colombia.

The focus of the exploration program is to follow up on multiple occurrences of previously announced high grade gold and silver samples and stream sediment anomalies and to further estimate the potential size, depth, and length of these occurrences.

The Company has defined the scope of the exploration program to include:

  1. Ground based geophysical surveys consisting of Induced Polarization (IP) and ground magnetic surveys at Iguanacito, Guayabales, and Abejero, including soil and geophysical surveys on the lines at Iguanacito and Guayabales areas and mapping of the Abejero artisanal mine.
  2. Further prospecting, soil sampling, and trenching will also be conducted to follow-up on the strong gold stream sediment geochemical anomaly found at La Puna (values of 1,480 ppb, 91.2ppb and 59.9ppb Au).
  3. A drilling program of approximately 2000 meters of large diameter HQ will follow on from the targets generated by these exploration programs.

Work Achievements of our Previous Exploration Campaign

Work to date by Angel Gold has identified a number of stream sediment targets in addition to the three areas of artisanal mining activity previously investigated by Mineros SA. Previously unrecognised intrusive bodies, including porphyry intrusives, widespread zones of sericite-silica alteration and scattered jasperoid and pyrite-silica alteration were identified by Angel Gold geologists, hosted within both intrusive and sedimentary rocks within this region.

Angel Gold conducted soil geochemical lines over two stream sediment anomalies, identifying significant mineralization at the Iguanacito prospect. Detailed trenching and channel sampling was carried out at this newly discovered Iguanacito prospect confirming the presence of highly significant gold-silver mineralization. The extension of the Iguanacito mineralized trend has been covered by a concession application by Angel Gold.

Monitoring of artisanal miner activity confirmed that the Abejero artisanal mine was producing bonanza grade gold mineralization. An Angel Gold channel sample across the width of the vein across the mining face in this bonanza grade mine returned 0.3m @ 117 g/t Au. Historic drilling by Mineros SA intersected significant gold values to 5.58m @ 70.35 g/t Au (true thickness unknown, but indicated to be close to intersection width) in shallow, small diameter reconnaissance drilling (BQ diameter, averaging only 66.6 meters length.) Wide zones of intense bleaching silicification were also encountered by Mineros in this drilling, which yielded significant silver mineralization of 9 meters averaging 89.9 g/t Ag. Angel Gold soil sampling indicates a potential continuation of this mineralized alteration zone on trend of the area tested by Mineros SA.

  1. Ground Geophysics - Induced Polarization and Ground Magnetics

Survey lines are to be cut by licensed surveyor, and topographic profiles prepared. Should the Induced Polarization survey detect anomalies close to the end of any survey line, that line will be extended to allow the Induced Polarization survey to better define the anomaly.

  • Iguanacito
    At Iguanacito, 12 lines are to be surveyed across a portion of the contact zone between the Segovia Batholith and black calcareous and carbonaceous sediments - the intrusive side of the contact hosts the intense silica-sericite alteration zone of the Iguanacito Prospect mineralization, and the black sediments host zones of intense sericitization, silicification, jasperoid occurrences and shear-hosted mineralization. Lines will be spaced at 100m over the known well-mineralized area, and at 200m along the indicated strike extension of the contact zone. Total length of the IP/mag lines will be 13.75 km, unless extended.
  • Guayabales
    Six IP/mag lines, spaced 200m apart, and totalling 9.3km are to be surveyed across the indicated and inferred silver mineralized silicified zone of the Guayabales intrusive body, which has intruded calcareous and carbonaceous and black sediments.
  • Abejero
    A single line 1,400m long paralleling the strike of this structure is planned to test for responses of potentially bonanza grade gold- and sulphide-bearing quartz lenses down dip within this structure (not exposed at the surface). This structure cuts Precambrian gneisses and an associated intrusive body, and has an intermediate dip. Two separate mineralized bodies have currently been identified within it.
  1. Soil Sampling and Mine Mapping

Soils samples will be collected along all lines at Guayabales at 50m intervals along lines. At Iguanacito a 300m portion central to each grid line will be sampled at 25m intervals, and the remainder of each line sampled at 50m intervals. No soil samples will be collected at Abejero, but the mine will be mapped in order to locate the extent of current development in order to refine targeting of a planned drill hole there.

  • Puna Stream Sediment Anomaly Follow Up
    Geological reconnaissance and rock chip sampling, as well as lines of soils sampling will be carried out across this strong gold anomaly. A topographic lineament, probably reflecting a secondary fault, runs through the middle of this anomaly and could host mineralization producing the anomaly. Multi-element patterns in stream sediment sampling show concentric metal zonation patterns and also suggest the gold anomaly to be intimately associated with the signature of an intrusive body.
  1. Drilling

A drilling program of approximately 2000 meters of large diameter HQ coring has been planned and budgeted, including 1300m in 20 holes at Iguanacito, 240m in 2 holes at Guayabales, and 470m in 3 holes at Abejero. Further drill holes are being provisionally considered. The drill program requires camp construction, access track upgrade to access targets, and drill pad and drill pad access preparation.

  • Iguanacito
    A number of shallow holes are planned to test directly under the demonstrated areas of substantial gold-silver trench results, which indicated two separate mineralized structures at Iguanacito - notably under trenches TJK004, TCO001-TCO002, TCO010, and TCO021. A second tier of slightly deeper holes is provisionally designed to drill under this first tier of holes if the results of the shallow drilling are good, as well as to test under the zones of sheeted veinlets and stockwork veinlets detected along strike to the south where the two separate Iguanacito zones unify into a wide zone of continuous sericite alteration. These slightly deeper holes, particularly those designed to test the veinlet zones will likely be modified upon receiving the results of the ground geophysics.
  • Guayabales
    A large diameter (HQ) core twinning and extension to 100m of the 60.2m BQ historic drill hole RBG049 is planned. RBG049 cut 9m averaging 89.9 g/t Ag (true thickness unknown) in intensely silicified intrusive that has been fractured and infilled with sulphide and quartz. A second hole of 140m depth is currently planned to drill under a soil anomaly 600m to the south of RBG049. The soil anomaly is inferred to overlie the continuation of the silicified zone. This second hole may be modified by the results of the geophysics survey.
  • Abejero
    Twinning in large diameter HQ core to 60m depth of historic small diameter drillhole RBA002 will be done with a second 250m hole being drilled underneath the intersection to test for down dip continuation. Drillhole RBA002 intersected 5.58m of 70.35 g/t Au (true thickness unknown, but indicated to be close to intersection width). A third hole of 160m depth will be drilled under the down dip extension of the bonanza grade artisanal Abejero mine.

Analysis / Quality Control and Quality Assurance

  1. Check Sampling of Historic Drill Holes

Stored pulp and bulk reject samples from Mineros core assaying were prepared and analyzed by Actabs Medellin and Actlabs Ancaster (for multi-elemental analyses). Preparation was by method RX1. For coarse rejects gold was assayed by method EF-AA Lab Code 1A2, with samples >5g/t gold reassayed by metallic screened fire assay method FA-MeT, Lab Code 1A4, whilst silver was assayed by method AR-AA Lab Code AQ1, with samples >100 g/t Ag reassayed by method FA-GRA, Lab Code 1A3.

For pulps and pulverized rejects gold was assayed by method EF-AA Lab Code 1A2, with samples >5g/t gold reassayed by metallic screened fire assay method FA-MeT, Lab Code 1A4, whilst silver was assayed by method AR-MS Lab Code 1DX, with samples >100 g/t Ag reassayed by method AR-AA, Lab Code AQ1.

All samples were assayed for a 36 element suite of elements by AR-MS methods 1DX.

  1. Stream Sediment Sampling

Survey and Analytical Methodology: Sampling was of generally between 2 to 4 kg of active stream sediment, dried and sieved at ALS Medellin to -80# (180 micron). Assaying was carried out by ALS Peru, using method ST43-PKG with Au by 25g aqua regia digestion and ICP-MS finish, and 51 element ICP-MS (method ME-MS41). Quality control included the duplicating of 3 samples at the identical initial sample location, while 3 other sites had replicate samples collected from 2 to 5 meters away. Additionally another 2 samples were each screened and split at the laboratory and each split assayed as consecutive samples. Two blanks and two standards were inserted.

  1. Soils Sampling

Samples were assayed by ALS Peru, using method ST43-PKG with Au by 25g aqua regia digestion and ICP-MS finish, and 51 element ICP-MS (method ME-MS41). Angel submitted blanks, duplicates and standards with the sample batches as part of its QAQC program.

  1. Rock chip sampling

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 redetermined by atomic absorption (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.

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