Angel Gold Corp.
TSX VENTURE : ANG

Angel Gold Corp.

February 11, 2015 09:30 ET

Angel Gold Sampling Confirms High Grade Gold-Silver Mineralization including 1.38m at 270 g/t Au and 145 g/t Ag from Historic Drill Results at El Porvenir

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 11, 2015) - Angel Gold Corp. (TSX VENTURE:ANG) ("Angel" or the "Company") is pleased to announce additional assay results from its due diligence sampling program on its El Porvenir Project in Colombia. The latest results from drill core check assays confirm the existence of high grade gold and silver mineralization and abundant free gold from sampling of multiple historic drill holes at its Abejero prospect. Angel has an option to acquire 100% interest in El Porvenir from Mineros S.A. ("Mineros") a private Colombian mining company.

"We are extremely pleased that the results from our due diligence sampling program are confirming the high grade gold and silver mineralization that is consistent with the geological characteristics of the El Porvenir. Our exploration efforts continue to enhance the gold potential of this underexplored property and these results highlight the significance of this opportunity by confirming bonanza grade gold mineralization at our Abejero prospect. Of the four currently identified exploration areas within the El Porvenir property, we expect Abejero to be a high priority target, "stated Stella Frias, President and CEO of Angel Gold Corp.

On February 5, 2015 we reported due diligence assays from a high grade gold sample (R00165), 117 g/t Au) from a 30-centimeter continuous-chip face sample at the Abejero artisanal workings located 127metres underground across the trend of a vein structure. Historic drilling by Mineros in the area up-dip above the workings returned negligible gold and silver values. Local miners commenced mining one vein 28metres in from surface, but continued to a second vein at the mine's current extent of 127metres, where the high grade face sample was taken.

Though the vein width is narrow in this exposure, veins in the Segovia District are well known for their pinch and swell nature, and an overall average width of around one meter is consistent over numerous veins. Other holes drilled in the area by Mineros intersected veins up to 5.58m in drilled thickness, the true thicknesses of the Mineros vein intercepts is not known due to insufficient data.

NOTE: all intersections mentioned below in this report are downhole lengths as insufficient information is at hand to estimate true thickness.

The west-northwest trending Abejero vein system has been currently traced for approximately 730m at the surface and in underground workings. The western end of the vein has yielded by far the best results to date, and is indicated in by the high grade gold intersected and reported by Mineros in drill holes RBADDH016 and RBADH002. Drill hole RBADDH016 is located approximately 70 meters from the area of current artisanal mining workings.

  • 1.6m @ 19.4g/t Au, 9.26 g/t Ag from 55.95 to 57.55m. (RBADDH016)

The second potential area of high grade gold mineralization was intersected in Mineros drill hole RBADDH002, some 330m northwest of the mine workings, which intersected a 5.58m quartz vein strongly mineralised on both margins:

  • 1.38m @ 270g/t Au, 145 g/t Ag from 48.37 to 49.75m, and
  • 1.02m @ 17.65 g/t Au, 23.9 g/t Ag from 52.93 to 53.95

Caution: The Company has not validated every drill hole sample assay provided by Mineros, but has conducted an extensive check assay program and has no reason to doubt the veracity of the Mineros' data. A complete listing of historic drill holes and sampling assay results are listed in the Company's NI43-101 Technical Report of the El Porvenir Project available at www.angelgoldcorp.com and on SEDAR. The Company has reviewed Mineros drill sampling and assaying program and found it to be to industry standards. For a detailed description of the review see footnote (1) below.

(1) Angel Gold evaluated the Actlabs Laboratory internal standards for all Angel Gold sample assay batches confirming good assay batch control for Au and Ag; identified that Mineros had inserted 103 standards, blanks and duplicate samples amongst its 761 drill core samples (13.5%); re-assayed the same Mineros samples across different sample prep types where available - assay pulps, pulverized rejects and crushed rejects; included its own high-grade standard and blank with the final rock sampling assay dispatch with good QC result; and carried out a detailed evaluation of Mineros vs Angel assays finding an excellent correlation between them in almost all elements, but most importantly of all in the Au and Ag values.

While 36 drill holes were completed by Mineros at Abejero, these holes were carried out as part of a scout drilling campaign to obtain geologic information, rather than as any attempt to define a deposit. Holes at Abejero had an average depth of only 66.6m and were drilled in the very small BQ core size, which is limiting for the evaluation of gold mineralization. Surface trenching by Mineros had identified vein quartz occurrences, but failed to provide adequate lithologic and alteration information on the host rocks due to the heavy saprolitisation of rocks near surface, and this was resolved by the shallow small-diameter-core scout drilling program .

Mineros was successful in drilling a number of quartz vein intercepts, both mineralized and barren, but missed target with other holes. To explain both these misses and the barren intercepts Angel Gold re-evaluated surface structural measurements and the 3-dimensional attitude of the Mineros drill intercepts using Gemcom. "We believe that veins at Abejero may actually occur as multiple en-echelon structures, rather than as the single semi-continuous vein structure as interpreted by Mineros," said Jim Stephenson, VP Exploration for Angel. "Further, some of these short geology holes targeted on assumed continuity actually appear to have variably:

  1. fallen in between the veins,
  2. possibly did not reach target as veins were actually more steeply dipping than interpreted,
  3. the vein varied from its inferred strike,
  4. made incorrect allowance for the effect of the steep topography on the interpreted trace of the vein."

It is also not unexpected that the mineralization occurs in a series of high-grade shoots, as the vein quartz in itself is apparently essentially barren of gold-silver mineralization where it is without fracturing and sulphide infill. Free gold is readily visible in material from the Abejero artisanal workings in late fractures cutting the sulphides, and was logged by Mineros as being common in the 5.58m vein intersection in drill hole RBADDH002. This, together with the history of the Segovia District and the processing of the non-oxidized mineralization by the artisanal miners, indicates the gold to be free milling and likely not refractory. It is also important to note that the mineralization within the Segovia District (of which El Porvenir is a part) continues to substantial depths. At El Porvenir the vein(s) has(have) not been tested below the artisanal workings thus allowing for significant target potential at depth.

The Abejero artisanal workings were found to cut two veins, as was indicated from the Mineros drill intersections. The first artisanal miner worked vein appears to have been cut in 3 Mineros BQ drill holes - RBADDH016, -007, and -017 of which only RBADDH016 returned the significant result (listed above), despite high grade material being mined where drill holes otherwise indicated barren veins. The second vein appears to be a separate vein structure intersected in RBADDH019. Vein intercepts however did return significant widths.

  • RBADDH016 - 1.6m from 55.95 to 57.55m
  • RBADDH007 - 3.95m from 51.5 to 55.45m
  • RBADDH017 - 0.9m from 49.0 to 49.9m
  • RBADDH019 - 1.65m from 46.05 to 47.7m, and 1.30m from 53.85 to 55.15m

As mentioned above, the small BQ core does not give a complete representative sample of the vein material, especially when free gold is present.

The vein hosting the high grade intersection in RBADDH002 appears from Gemcom interpretation to have veered from the trend interpreted by Mineros. Barren quartz was intersected to the northwest, but no vein was encountered in the next drillhole to the southeast. Drill holes near this hole made encouraging intersections, whilst RBADDH003 some 70m away from RBADDH002 may have intersected a different or offset vein.

  • RBADDH012 - 90cm barren quartz vein from 41.5 to 42.4m
  • RBADDH014 - 0.65m @ 4.56 ppm Au, 2.64 ppm Ag from 53.25 to 53.90m
  • RBADDH003 - 0.55m @ 14.1 ppm Au, 8.9 ppm Ag from 62.7 to 63.25m
  • RBADDH004 - 3 very low grade assays over a single 3.02m vein (see tables below)

Gold occurs in a 1.6:1 Au:Ag ratio, indicating that a sizeable proportion of the silver occurs with the gold, and appears only indirectly associated with the presence of galena. The mineralization assemblage consists of earlier pyrite and galena with very minor associated Zn, Te and Se values. Vein quartz is fractured and infilled with pyrite, which in turn is cut by galena fracture fills, which in turn is cut by late fractures infilled with abundant free gold (see vein photos at www.angelgoldcorp.com. The Angel Gold geologist was only allowed to look at and photograph the miner's ore, and could not sample it. Common free gold was observed in every piece examined.

Given the historic grades found in the district Angel Gold in looking for large-scale gold targets would have dimensions of approximately one meter by 250m length and 500m depth. At the Gran Colombia's Segovia Mine, which is some 2km from the western border of the El Porvenir concession, vein mineralization has been traced down dip for over 1300m, and is still open to depth. Segovia has produced some 4.6 million ounces of gold to date and is still producing. El Porvenir has four relatively poorly explored vein systems to date aggregating 4100m in combined strike length of prospective gold target area that Angel Gold is evaluating.

The reader is referred to the Assay Tables at the very end of this Press Release.

Qualified Person

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

About Angel Gold Corp.:

Angel is a Canada-based gold exploration company focused on responsible development of mineral resources in Colombia. Angel's Colombia based gold exploration team has over 25 years' experience in the country. The Company continues its strategy to acquire strategic opportunities in Colombia's best mining districts.

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: CONFIRMATION REASSAYING BY ANGEL GOLD OF MINEROS' SIGNIFICANT DRILL INTERCEPTS AT GUAYABALES

NOTE: THESE ARE DOWN HOLE LENGTHS AS THE TRUE THICKNESS CANNOT BE DETERMINED FROM THE INFORMATION AT HAND

ASSAY TYPE DRILL HOLE FROM TO INTERVAL Au
ppm
Ag
ppm
Pb
ppm
Zn
ppm
Cu
ppm
ROCK-TYPE
Mineros Original Assay RBADDH002 48.37 49.75 1.38 270 145 quartz vein margin
Angel Reassay of Pulp 267 137 > 5000 > 5000 68
Angel Reassay of Coarse Reject 162 94.9 3680 3140 42
Mineros Original Assay RBADDH002 52.93 53.95 1.02 17.65 23.9 quartz vein margin
Angel Reassay of Pulp 16.50 23.7 3240 386 221
Angel Reassay of Coarse Reject 12.00 20.9 2960 255 195
Mineros Original Assay RBADDH003 62.7 63.25 0.55 14.10 8.90 quartz vein
Angel Reassay of Pulp 18.30 7.00 7.4 37 4860
Mineros Original Assay RBADDH014 53.25 53.9 0.65 4.56 2.64 29 entire quartz vein
Angel Reassay of Pulp 4.24 3.30 3140 907 26
Angel Reassay of Pulverised reject 4.36 3.30 2980 898 24
Mineros Original Assay RBADDH016 55.95 57.55 1.60 19.4 9.26 262 64 29 entire quartz vein
Angel Reassay of Pulp 19.20 8.1 291 72 31.7
Angel Reassay of Pulverised Reject 19.5 8.1 291 77 32

TABLE 2: SIGNIFICANT HISTORIC MINEROS DRILL HOLE VEIN INTERCEPTS,WESTERN HALF OF ABEJERO TREND

NOTE: THESE ARE DOWN HOLE LENGTHS AS THE TRUE THICKNESS CANNOT BE DETERMINED FROM THE INFORMATION AT HAND

DRILL HOLE FROM TO INTERVAL AU-PPM AG PPM COMMENT
RBADDH002 48.37 49.75 1.38 270.00 145.00 quartz vein margin
RBADDH002 52.93 53.95 1.02 17.65 23.90 quartz vein margin
RBADDH003 62.70 63.25 0.55 14.10 8.90 entire quartz vein
RBADDH014 53.25 53.90 0.65 4.56 2.64 entire quartz vein
RBADDH016 55.95 57.55 1.60 19.40 9.26 entire quartz vein

TABLE 3: VEIN THICKNESSES IN VICINITY OF ABEJERO MINE AND RBADDH002

NOTE: THESE ARE DOWN HOLE LENGTHS AS THE TRUE THICKNESS CANNOT BE DETERMINED FROM THE INFORMATION AT HAND

DRILL HOLE FROM TO INTERVAL COMMENT
RBADDH002 48.37 53.95 5.58 SEE ABOVE
RBADDH003 62.70 63.25 0.55 SEE ABOVE
RBADDH004 49.63 51.65 3.02 SEE ABOVE
RBADDH007 51.50 55.45 3.95 BARREN
RBADDH012 41.50 42.40 0.90 BARREN
RBADDH014 53.25 53.90 0.65 SEE ABOVE
RBADDH016 55.95 57.55 1.60 SEE ABOVE
RBADDH017 49.00 49.90 0.90 BARREN
RBADDH019 46.05 47.70 1.65 BARREN
RBADDH019 53.85 55.15 1.30 BARREN

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