Antofagasta Gold Inc.
TSX VENTURE : AN

August 22, 2013 08:00 ET

Antofagasta Gold Provides Exploration Results for Its Capricornio Project, El Penon Gold District, Chile

TORONTO, ONTARIO--(Marketwired - Aug. 22, 2013) - Antofagasta Gold. ("Antofagasta" or the "Company") (TSX VENTURE:AN) has received the final set of drill results from its 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 20 kilometres west from Xstrata's producing Lomas Bayas Mine and immediately south of its 2.935 square kilometre Antofagasta Chilean copper belt project, the Attacama copper property (See Press Release dated July 31, 2013).

The drill program consisted of approximately 6,352.50 metres of HQ3 diamond drill core and was designed to confirm historical mineralized intercepts and complete a broad scale test of a regional scale epithermal gold - silver system. Upon analysis of the drill results, the following observations and interpretations were reached:

  • A regional scale epithermal system consisting of quartz veins ranging from 25 metres to under 1 metre in width, trending generally north south, and covering an area approximately 3 x 4 km was defined; twenty linear kilometers of precious metal bearing vein strike has been confirmed.
  • Texture of quartz in veins and replacement bodies are at and above the transition from Crustiform-Colloform Superzone to the Chalcedonic Superzone in an epithermal system (Morrison et al, 1990) and results indicate that erosion has not removed the potentially most precious metal bearing part of the system.
  • Near surface gold-silver is interpreted as supergene mineralization within oxidized material in some instances.
  • Short hole drilling at the central portion of the epithermal system intersected wide gold-quartz bearing veins and stockwork with extensive primary mineralization, indicating potentially the upper halo of a high grade zone to depth.
  • 68% of diamond drill holes intersected quartz vein hosted gold and/or silver mineralization.
  • Average grade multiplied by width of mineralized intersections is 16, consisting of a vast majority of near surface intersections.
  • Limited deep drilling conducted during this campaign was successful at placing the system within the epithermal model, vectoring prospective areas, and intersecting mineralized intervals at depth within the Ilusion vein system.
  • Extensive silica flooding was also encountered in other parts of the Ilusion vein, possibly remobilizing precious metals.

A map of the project, showing drill hole collars, can be accessed here: http://media3.marketwire.com/docs/an822-F1.pdf.

As indicated by previously reported fluid inclusion work, textural and geochemical features of the vein system places the current surface expression of the Capricornio epithermal system near the top of the system. Evidence supporting this interpretation can be seen in some of the recently drilled holes on Mejillones, Montevideo, Santa Rosa and some parts of the Illusion zone that intersected wide sections of multi-phase mineralized veins and veinlets over core lengths of up to 42 metres. The silica replacement bodies (silica caps) have superimposed stockworks of colloform chalcedony veinlets with pyrite or hematite box works after pyrite. Quartz textures in the silica replacement bodies varies from opaline to saccharoidal, to cryptocrystalline and locally quartz pseudomorphs coarse calcite crystals.

The more prospective areas for high grade precious metal mineralization lies below the currently drilled portions of the vast majority of the mineralized area. Of priority interest for follow-up exploration is the Santa Rosa zone near hole CAD-13-027 which intersected a well defined vein, displaying a high grade zone of 4.23 g/t Au equivalent over 4 metres (76.0 metres to 80.0 metres) of core length within a wider 10 metre (71.0 metres to 81.0 metres) zone grading 2.23 g/t Au equivalent. This hole is the deepest in the Santa Rosa zone to date and lies under an anomalous silica replacement body at surface.

Vernon Arseneau, Vice President of Exploration, commented, "Our results to date define an extremely large area of shallow mineralization (average drill hole depth); the more important results of this first phase of exploration is the very significant potential of high grade material at depth. We have completed detailed geological work, utilized international epithermal vein experts, and concur this epithermal system presents a unique opportunity to define a high grade gold-silver deposit."

Details of drill intercepts can be found in Table 1.

Table 1- Capricornio drill results
DDH Vein From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Ag
(g/t)
Au Eq
(g/t)
CAD-12-001 Ilusion 39.00 51.00 12.00 2.65 6.38 2.78
incl. Ilusion 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. Ilusion 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. Ilusion 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. Esperanza 101.00 103.00 2.00 9.15 6.95 9.29
CAD-12-009 Illusion 120.00 122.00 2.00 5.07 42.80 5.92
CAD-12-010 Illusion 221.00 228.00 7.00 0.61 3.93 0.69
and Illusion 233.00 250.00 17.00 0.23 1.82 0.27
CAD-12-011 Illusion 138.00 148.00 10.00 1.42 13.38 1.69
Incl. Illusion 142.00 146.00 4.00 2.71 26.45 3.24
CAD-12-012 10 NSR
CAD-12-013 Mejillones 1.00 43.00 42.00 0.50 3.10 0.56
Incl. Mejillones 2.00 5.00 3.00 1.64 1.47 1.67
Incl. Mejillones 33.00 36.00 3.00 1.62 26.27 2.15
CAD-13-014 Mejillones NSR- Fault
CAD-13-015 10 17.00 21.00 4.00 0.97 1.56 1.00
Incl. 10 19.00 20.00 1.00 2.40 3.00 2.46
CAD-13-016 10 10.00 14.00 4.00 1.88 3.08 1.94
Incl. 10 11.00 13.00 2.00 3.38 2.95 3.44
CAD-13-017 10 16.00 19.00 3.00 1.89 4.87 1.99
or 10 17.00 19.00 2.00 2.72 6.75 2.86
CAD-13-018 10 NSR
CAD-13-019 Mejillones 10.00 49.00 39.00 0.20 3.94 0.28
Incl. Mejillones 31.00 33.00 2.00 0.82 11.25 1.05
CAD-13-020 Illusion 104.00 134.00 30.00 0.39 3.92 0.47
Incl. Illusion 112.00 116.00 4.00 1.73 8.50 1.90
CAD-13-021 Mejillones 14.00 23.00 9.00 1.01 1.34 1.04
Incl. Mejillones 17.00 22.00 5.00 1.62 1.16 1.64
CAD-13-022 Montevideo 20.00 35.00 15.00 0.51 2.11 0.55
Incl. Montevideo 29.00 32.00 3.00 1.60 1.90 1.64
And Montevideo 36.00 37.00 1.00 0.02 251.00 5.04
CAD-13-023 Ilusion NSR - Silica flooding
CAD-13-024 Santa Rosa 42.00 57.00 15.00 1.30 2.93 1.36
Incl. Santa Rosa 50.00 54.00 4.00 3.15 4.00 3.23
CAD-13-025 Santa Rosa 22.00 30.00 8.00 0.60 3.30 0.67
CAD-13-026 Ilusion NSR - Silica flooding
CAD-13-027 Santa Rosa 71.00 81.00 10.00 2.15 4.20 2.23
Incl. Santa Rosa 76.00 80.00 4.00 4.10 6.68 4.23
CAD-12-028 Ilusion NSR - Silica flooding
CAD-13-029 Santa Rosa 79.00 83.00 4.00 0.36 0.78 0.38
CAD-13-030 Illusion 155.00 157.00 2.00 <0.01 612.25 12.25
CAD-13-031 Esperanza NSR
CAD-13-032 Esperanza NSR
CAD-13-033 Illusion NSR - Silica flooding
CAD-13-034 Esperanza NSR
CAD-13-035 Esperanza NSR
CAD-13-036 Illusion NSR - Silica flooding

Notes:

  1. Reported widths are cored widths and do not necessarily represent true widths; insufficient work has been completed to adequately define true widths.
  2. Silver to gold ratios used to calculate gold equivalent (Au Eq) values is 50 to 1.

About Antofagasta Gold

Currently Antofagasta Gold has three properties under option covering approximately 326,000 hectares. All the properties are within the Antofagasta region of Chile, at low altitudes and within producing mining camps. The Company recently announced the closing of the Atacama Copper Property agreement, consisting of 293,000 hectares of undrilled ground in the heart of Chile's premier copper mining district. The Atacama Copper Property is adjacent to the Capricornio Property, forming part of a contiguous land package that can be worked in conjunction. In addition the Company also has the Pampas El Penon project. The Pampas El Penon and Capricornio properties comprise Antofagasta Gold's highly prospective gold properties within an active mining region.

The technical and scientific aspects of this news release have been reviewed and approved by Mr. Vernon Arseneau, P.Geo, who has been designated as a qualified person pursuant to 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 results of the drill program, 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, the El Penon project and the Attacama 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 the 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