Angel Gold Corp.
TSX VENTURE : ANG
OTCQX : ANGCF

Angel Gold Corp.

March 27, 2017 09:30 ET

Angel Gold Geophysical Survey Encounters Multiple Strong Chargeability Anomalies at Guayabales Prospect at the El Porvenir Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 27, 2017) - Angel Gold Corp. (TSX VENTURE:ANG)(OTCQX:ANGCF) ("Angel" or the "Company") is pleased to provide an update on recent progress on Angel's geophysical survey program at its Guayabales Prospect, the second of the three prospects surveyed at our El Porvenir project located in the Segovia Mining District of Antioquia, Colombia.

  • The Induced Polarization survey has been completed at Angel's Guayabales Prospect over five lines at 200m spacing.
  • Preliminary results of the geophysical data obtained in the field indicates several distinct high chargeability responses (notes 1 and 2 below) as well as a separate broad zone of more moderate response consistent with sulfide mineralization at depth.
  • Preparation of the final report with detailed interpretation is under way.

"The Induced polarization data gathered at Guayabales is continuing to support and enhance our belief that our El Porvenir Project has the potential to host conductive sulfide bodies that may contain gold and silver mineralization. Two kilometers away in the district, high-grade vein-hosted mineralization is being mined at the Gran Colombia gold mine (Segovia project). We also have identified a type of mineralization previously undocumented in the Segovia Mining District: that of quartz-sericite breccia-hosted silver-gold mineralization that is intrusive related" says Stella Frias, President and CEO of Angel Gold Corp. "The chargeability geophysical anomalies identified at Guayabales, are coincident with surface silver-gold breccia hosted mineralization as well as to zoned multi-element soil responses, supporting our belief that these geophysical anomalies may represent the presence of blind or semi-blind bodies of sulfide mineralization. We have already determined from surface work that sulfide mineralization is related to silver and gold mineralization," added James Stephenson P.Geo, Vice-President of Exploration.

HIGH CHARGEABILTY ANOMALIES

  • Discrete high chargeability responses are believed to be associated with individual sulfide-silica bodies such as that encountered in historic drill hole RGBDDH049 which returned a down hole intersection of 9m at 89.9 g/t silver 0.76 g/t gold, and a small nearby surface exposure that returned 190 g/t silver 1.57 g/t gold in a composite rock chip sample.
  • Interestingly this known silver-gold sulfide-silica breccia-hosted mineralization yielded a significantly weaker and narrower chargeability response than of the other discrete high chargeability anomalies; this is strongly indicative that the significantly stronger and larger chargeability highs are associated with larger and more sulfide-rich bodies of sulfide-silica breccia fill. This potential is clearly indicated in the two adjacent preliminary sections shown below in Figures 1 and 2.

To view Figure 1, please follow this link: http://media3.marketwire.com/docs/d_000%20NE_GYBL_Pseudo_Figure%201.jpg

Figure 1: Section 0+00NE showing response over known sulfide-silica breccia hosted mineralization, outcropping at 0+ 00 SE (grid origin), showing a relatively modest anomaly of 15 to 20mV/V. Note the open anomaly on the right-hand end of the line which correlates with the strong anomaly in the right of Figure 2 below.

To view Figure 2, please follow this link: http://media3.marketwire.com/docs/c__200%20SW_GYBL_Pseudo_Figure%202.jpg

Figure 2: Provisional Section 2+00SW - (INCOMPLETE, with surveying of the right hand end of the line in progress at receipt of data of this incomplete section). The section shows a very low background of around 5mV/V, with anomalies in the right of section of over 20mV/V and the anomaly in the left of section to over 100mV/V. The left hand anomaly appears to correlate at depth with the shallower weaker mineralization encountered in Figure 1 above.

  • Strong chargeability responses were encountered on sections 6+00SW, 4+00SW, 2+00SW and 0+00NE
  • While the anomaly over the known mineralization extends to surface, the strongest chargeability responses are all sub-surface, with some of these deep anomalies continuing to surface as more weakly chargeable responses, and others being completely blind. Significantly, where multi-element soil geochemistry was interpreted as possibly reflecting blind underlying mineralization, underlying high IP chargeability responses were encountered.
  • Our interpretation of surface geochemical responses infers a more silver-gold response to the soil geochemical anomalies in the left (northwest) of the sections, but suggests a more gold-rich system underlying the soil responses in the right (southeast) of the sections. This can only be confirmed by drilling.

BROAD MODERATE CHARGEABILITY RESPONSE

  • Chargeability background progressively increases from5 mV/V and under in sections 6+00SW and 4+00SW, to around 7 mV/V in 2+00SW, to 8 to 9 mV/V in sections 0+00NE and 2+00NE suggesting some differing geology occurs north of the surveyed area where different intrusive phases have been identified.
  • A broad 600m wide zone (open to the left of section) of moderate chargeability (10 to 15 mV/V)was encountered on the northernmost surveyed line, section 2+00NE, possibly reflecting a disseminated sulfide halo around a discrete body of more mafic diorite that was identified a short distance to the north. Section 2+00NE is shown in Figure 3 below.
  • An exposure of intense K-feldspar potassic alteration as well as more-widespread sericite alteration had been previously noted in this poorly exposed mafic diorite intrusive. The significance of the potassic alteration at this time remains open to conjecture. Potassic alteration is reported locally associated with vein mineralization in the Segovia District, but no veins were observed anywhere near this exposure.

To view Figure 3, please follow this link: http://media3.marketwire.com/docs/e_200%20NE_GYBL_Pseudo_Figure%203.jpg

Figure 3: Provisional Section 2+00NE showing a broad zone of moderate chargeability (left half of section) possibly reflecting a disseminated sulfide halo around a mafic diorite body north of the section.

Conclusion

  • It is believed that these strong chargeability responses at Guayabales could represent areas of intense silica-sulfide alteration that have the potential to host sub-vertical, pipe-like to elongate, fissure-fill bodies of silver-dominant (silver-gold) and gold-dominant (gold-silver) mineralization.
  • Based on the geophysical anomalies the size potential for these bodies could be as much as 100m in width rather than the average 1m of the typical quartz vein hosted deposits in the Segovia Mining District.
  • The broad >600m wide moderate chargeability response of the northernmost line suggests disseminated sulfide mineralization that could reflect a mineralized halo around a different intrusive phase (mafic diorite as opposed to tonalite) and thus offer potential for more disseminated styles of intrusive hosted mineralized targets.

NOTE1: The accompanying "pseudosection" is a non-"inverted" presentation of results. The survey was carried out with a pole-dipole configuration progressing from left to right in the section, and by its very nature the method presents a leftwards slant to the results. No correction inversion algorithm has been applied to show the "true" position of the anomaly. The interpretation is done by matching the observed geology to the IP results. Mineralized bodies are inferred to be irregular but overall sub-vertical in orientation

NOTE2: A chargeability response indicating the presence of sulfides reflects the location of the sulfide-bearing body below the base of oxidation, and not the oxidized surface portion of the body. Thus for a dipping sulfide zone the chargeability anomaly will displace away from the oxidized surface exposure.

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's flagship project the El Porvenir is located at less than 2 km from the Segovia project of Gran Colombia, the El Pino West Project is adjacent to the Gramalote project of B2Gold and Anglo Gold Ashanti JV and its Heliconia project is located north of the Titiribí District along the Cauca fault system.

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.

Contact Information

  • For investor relations, please contact:
    Stella Frias
    +1 (360) 650 1440