Atacama Pacific Gold Corporation

Atacama Pacific Gold Corporation

April 12, 2013 08:20 ET

Atacama Pacific Reports Cerro Maricunga Phase IV Drill Results

114 Metres Grading 0.93 g/t Gold Including 1.75 g/t Gold over 30 Metres

TORONTO, ONTARIO--(Marketwired - April 12, 2013) -

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Atacama Pacific Gold Corporation (TSX VENTURE:ATM) ("Atacama Pacific") is pleased to report further Phase IV drill results, including 114 metres grading 0.93 grams per tonne gold ("g/t Au") with a higher grade interval of 1.75 g/t Au over 30 metres, from its 100% owned Cerro Maricunga oxide gold project located in Chile's Maricunga Mineral Belt. Table 1, attached, summarizes the current drill results and figure 1 presents the location of the drill holes.

Diamond drill hole CMD-262, cored into the centre of the Lynx Zone cut four intervals of oxide mineralization including 24 metres grading 0.28 g/t Au, 46 metres grading 0.32 g/t Au and 80 metres grading 0.53 g/t Au followed by 0.93 g/t Au over 114 metres which expanded the dimensions of the higher grade area on section 2350 previously intersected by CMR-124 (60 m @ 0.91 g/t Au).

Reverse circulation drill holes CMR-271 (3 intervals including 78 m @ 0.42 g/t Au - section 950) and CMR-294 (100 m @ 0.33 g/t Au - section 1050 Au) returned significant intervals of +0.3 g/t Au mineralization in an area located between the Crux and Phoenix Zones previously modelled as barren. These holes follow up on two drill holes (CMR-239 and CMR-241 released January 17, 2013) located on section 900 which, when taken together, outline a new area of east-west trending oxide gold over a strike length of approximately 150 metres and widths of over 100 metres.

The drilling component of the Phase IV campaign has now been completed and mapping, surface channel sampling and metallurgical sampling will continue through early May. Originally planned for 20,000 metres of drilling, the identification of additional infill targets within the Cerro Maricunga deposit necessitated increasing the program to a total of 27,200 metres. In addition to infill drilling, condemnation holes were drilled in the leach pad and plant area and a sixth water monitoring well was also completed.

The goal of the Phase IV drilling program is to convert inferred category resources, located within the US$1,400 pit shell outlined in Atacama Pacific's recently released preliminary economic assessment (released January 28, 2013), to the measured and indicated categories. Overall, the current results of the Phase IV campaign have confirmed the interpretation of the resource model with the exception of the Pollux Zone where the mineralization is orientated in an east-west direction compared to the general northwest trend of the main deposit. Changes in the Pollux Zone interpretation are not expected to have a significant impact on the Cerro Maricunga resource estimate.

Final drill results should be available by June 2013 with an updated resource estimate planned for the third quarter of 2013 after which Atacama Pacific will commence feasibility work.

Metallurgical Update

As part of the continuing development of the project, a further 14 column and 34 bottle roll tests have been completed at Kappes, Cassidy and Associates' extractive metallurgical laboratory in Reno, Nevada. The test work focused on low to average grade mineralization from the three main gold zones typically crushed to 19 millimetres. The final results from the testing are anticipated this month.

Santa Teresa Drilling

Atacama Pacific recently completed three reverse circulation drill holes (1,450 m) targeting a strong chargeability anomaly identified from a recently completed induced polarization survey. The Santa Teresa property is located within the northwest corner of the Cerro Maricunga property, 8 kilometres northwest of the Cerro Maricunga deposit. All three drill holes intersected intervals of disseminated pyrite and fragments of quartz veining were noted in the reverse circulation chips. The chargeability anomalies are associated with magnetic highs and overlie a series of trenches which have returned anomalous gold grades.

National Instrument 43-101

Michael Easdon, a professional geologist registered with the American Institute of Professional Geologists, is the independent qualified person for the current exploration program and has reviewed, approved and verified the content of this press release. Carlos Guzmán, a mining engineer, Fellow of the Australasian Institute of Mining and Metallurgy and a registered member of the Chilean Mining Commission, is the independent qualified person as defined by National Instrument 43-101 ("NI 43-101") for the Preliminary Economic Assessment for the Cerro Maricunga project. Mr. Guzmán is a Principal and Project Director with NCL Ingeneiría y Construcción Ltda., Santiago, Chile.


This news release contains forward-looking statements, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to the success of exploration activities generally, mine development prospects, and potential future gold production. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "expects" or "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation 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.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the results of due diligence activities, changes in economic parameters and assumptions, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; the results of regulatory and permitting processes; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; the results of further economic and technical studies, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in Atacama Pacific's publicly filed documents.

Although Atacama Pacific has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements 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 statements.

Table 1 - Summary of Cerro Maricunga Drill Results (≥ 10 m intervals composited at a 0.2 g/t cut-off)
Hole # Section From To Interval Grade Zone Notes
(metres) (metres) (metres) (g/t Au)
CMD-262 2350 56 80 24 0.28 Lynx Core of Lynx
104 150 46 0.32
182 262 80 0.53
276 390 114 0.93
including 280 310 30 1.75
CMD-266 600 174 192 18 0.54 Crux SW contact area
246 292 46 0.40
CMR-270 600 132 146 14 0.33 Crux Target barren area within Crux
CMR-271 950 54 64 10 0.60 Pollux New, between Crux and Phoenix
90 134 44 0.30
152 230 78 0.42 Ends in mineralization @ 230m
CMD-272 950 32 68 36 0.36 Phoenix SW contact, Phoenix/Pollux transition
226 248 22 0.23
CMR-273 950 54 128 74 0.41 Phoenix Phoenix/Pollux transition
CMR-274 550 0 26 26 0.34 Crux Core of Crux zone
80 190 110 0.52
224 238 14 0.23
CMD-275 950 174 184 10 0.25 Pollux
CMR-276 850 16 26 10 0.26 Pollux Southern contact
CMR-277 850 0 24 24 0.33 Pollux Core area, dike? cut at ~100m
76 88 12 0.26
CMR-279 900 158 230 72 0.40 Pollux Centre of Pollux
CMR-280 950 0 16 16 0.34 Pollux Centre of Pollux
40 60 20 0.28
CMR-283 850 0 80 80 0.57 Crux NE contact area
96 130 34 0.28
CMR-285 600 54 84 30 0.33 Crux NE contact area
96 116 20 0.24
CMR-286 1200 10 54 44 0.32 Phoenix
90 100 10 0.31
114 160 46 0.35
CMR-288 300 2 54 52 0.45 Crux NE contact area
CMR-290 1150 0 20 20 0.30 Phoenix
36 48 12 0.28
88 124 36 0.33
140 250 110 0.55
CMR-291 900 0 58 58 0.41 Pollux SW contact area
CMR-294 1050 20 120 100 0.33 Phoenix Previously considered barren
CMR-297 550 6 16 10 0.26 Crux SW contact area
34 46 12 0.26
66 220 154 0.46
NOTES: Unless otherwise noted, reported gold grades are composited at a 0.2 g/t Au cut-off. All intervals represent down-hole lengths and not true widths. Drill holes prefixed "CMD" are diamond drill holes; holes prefixed "CMR" are RC drill holes.

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