Antofagasta Gold Inc.

February 14, 2013 18:00 ET

Antofagasta Gold Confirms New Regional Scale Low Sulphidation Epithermal Gold Discovery, Capricornio Project, El Peñon Gold District, Chile

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2013) - Antofagasta Gold Inc. ("Antofagasta" or the "Company") (TSX VENTURE:AN) has received drill results from its initial drill program at the Company's wholly-owned Capricornio Property ("Capricornio"), located approximately 80 kilometres northwest from the El Peñon Gold Mine (Yamana Gold) and 20km west from Xstrata's producing Lomas Bayas Mine.

The Capricornio project is under option from Sociedad Quimica y Mineral de Chile, Chile's largest potash, lithium, iodine and nitrates producer. The Capricornio project is two wheel drive road accessible, 7 km from a power source and is located approximately 1,020 metres above sea level.

Initial drilling at Capricornio was designed to confirm historical near-surface gold results by SQM along 3 of over 6 exposed north-south epithermal gold-bearing quartz veins on surface. Highlights of the exploration campaign are as follows:

- Antofagasta has confirmed a cumulative of 20 linear kilometres of gold - bearing low sulphidation epithermal vein strike, with individual mineralized veins having strike lengths between 500 metres and 2.0 kilometres.
- A ground magnetic survey completed to the north of the exposed vein system indicates another 3 to 6 kilometres of potential host vein structure strike below a shallow alluvial cover.
- The initial 9 drill holes were designed to test near-surface mineralization and verify historical results, to a maximum depth of 150 metres from surface.
- 8 out of 9 intercepts returned a weighted average grade of 4.54 gpt Au/equivalent over 4.13 metres with a drill intercept range between 2 and 17 metres.
- The 9 drill holes were spread out covering over 400 metres of the cumulative 20 kilometres of known gold bearing vein strike; results from additional holes are pending.
- The average gold equivalent per drill hole was 94% Au gold and 6% silver.
- All high grade intersections lie within, or flanked, by larger low grade, 0.1 to over 1.0 grams Au per tonne halos in hydrothermal breccias between 17 and 44 metre core length.

Veins trending north-south or near-north-south are consistently shown to be gold bearing. The east-west veins appear to be later extensional structures and are not considered priority drill targets. The drilling conducted to date has confirmed a portion of the historical near-surface drill results and defines the most prospective sections for the next phase of drilling.

To view the map of the project, please visit the following link:

The phase II drill program will target mineralization by a series of "fences" at 75 metre vertical intervals along the same section down to a minimum depth of at least 350 metres below surface. This will allow for effective exploration of the large system, testing for zoning and plunge direction at various locations in the overall target area.

Only trace amounts of base metal mineralization has been identified. Veins generally show low sulphide content with intense oxidation to a minimum depth of 150 metres from surface. Limited fluid inclusion studies conducted to date indicate an emplacement temperature below 300 degrees Celsius and low salinities, indicating the surface expression of the veins is towards the top the system. The veins are considered low- to mid-sulphidation veins.

Details of drill intercepts can be found in Table 1. A map showing the spatial distribution of the vein and drill hole collar locations can be found below.

Table 1- Capricornio Phase I drill results
DDH Vein From To Interval Au (gpt) Ag (gpt) Au Eq (gpt)
CAD-12-001 Ilusion 39.00 51.00 12.00 2.65 6.38 2.78
incl. 49.00 51.00 2.00 4.98 2.65 5.03
CAD-12-002 Ilusion 10.00 27.00 17.00 3.60 20.70 4.01
incl. 15.00 20.00 5.00 6.20 57.78 7.35
CAD-12-003 Ilusion 73.00 85.00 12.00 0.37 0.68 0.38
CAD-12-004 Santa Rosa 24.00 27.00 3.00 5.00 3.17 5.06
CAD-12-005 Illusion 189.00 191.00 2.00 2.76 19.50 3.15
CAD-12-006 Esperanza 26.00 29.00 3.00 2.57 2.03 2.62
CAD-12-007 Illusion 82.00 90.00 8.00 2.14 6.66 2.28
incl. 83.00 85.00 2.00 5.69 14.15 5.97
CAD-12-008A Esperanza 100.00 104.00 4.00 5.28 4.92 5.38
incl. 101.00 103.00 2.00 9.15 6.95 9.29
CAD-12-009 Illusion 120.00 122.00 2.00 5.07 42.8 5.92
Reported widths are cored widths and do not necessarily represent true widths; insufficient work has been completed to adequately define true widths.
Silver to gold ratios used to calculate gold equivalent (Au Eq) values is 50 to 1.

Antofagasta Gold Inc. (formerly Windamere Ventures Ltd.) is a Canadian mineral exploration company currently focused on projects in Chile. The initial focus is on advancing its wholly-owned Capricornio project near Antofagasta, Chile. The Company will also actively seek out complementary growth opportunities that are synergistic with its projects and management strengths. Antofagasta's board and management have both significant technical knowledge and capital markets experience that will assist in the Company's growth.

The technical and scientific aspects of this news release have been reviewed and approved by Mr. Vern Arseneau, P.Geo, who is a qualified person in accordance with NI 43-101. As the Vice President of Exploration of the Company, Mr. Arseneau is not considered independent.

On behalf of the Board of Directors of Antofagasta Gold Inc.,

William Randall, President and CEO

Cautionary Note Regarding Accuracy and Forward-Looking Information

This news release may contain forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements, projections and estimates relating to the future development of any of the Company's properties, the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Capricornio project, and the Company's ability to obtain financing. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The statements made herein are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Estimates underlying the results set out in this news release arise from work conducted by previous owners and the Company. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Antofagasta does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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 release.

Contact Information

  • Antofagasta Gold Inc.
    William Randall
    President and CEO
    (416) 309-2697