Au Martinique Silver Inc.

Au Martinique Silver Inc.

February 06, 2006 11:07 ET

Au Martinique Silver Inc. Hits the Ground Running in El Salvador

ORLEANS, ONTARIO--(CCNMatthews - Feb. 6, 2006) - Au Martinique Silver Inc.(TSX VENTURE:AUU) is pleased to announce the Phase 1 results from its initial exploration activities in the Potonico District located in North Central El Salvador (Figure 1). The Potonico District is large, approaching 200 km2 of hydrothermally altered intermediate volcanic rocks, located along the Central American Gold Belt (CAGB). Historical gold-silver production has occurred near the Potonico District including the El Dorado District (Pacific Rim; about 20 km to the southeast) and the Paisnal District (Bema; about 30 km to the west). Both mineral districts contain low sulfidation gold-silver epithermal deposits and are currently being explored.

Figure 1 is available at the following address:

Management Summary:

- Au Martinique Silver Inc. completes Phase 1 of its major joint exploration program with Intrepid Minerals on the Potonico gold-silver project (Department of Chalatenango, North Central El Salvador along the Central American Gold Belt).

- Exploration focused on San Antonio, Potonico, Petancol and Mercedes fault zones, each comprised of extensively altered volcanic rocks and gold-silver bearing veins and breccia.

- Historic exploration trenches and outcrops contain up to 988 g/t Ag and 97.5 g/t Au in epithermal gold-type occurrences.

- Au Martinique Silver's 2004 -05 program discovered samples from the Potonico property containing up to 915 g/t Ag and 136 g/t Au.

- Stream sediment and airborne magnetic surveys reveal several new highly altered gold-silver bearing zones.

- The Potonico gold-silver corridor remains the priority target.

- Mercedes and San Antonio trends contain abundant low-sulfidation epithermal-type alteration.

- Further trenching and sampling of all zones is underway.

History of the Potonico District

In the late 1960s and early 1970s, geologic mapping conducted by the German Geologic Mission in El Salvador identified regionally extensive hydrothermal alteration covering approximately 150 km2 in Department of Chalatenango. In 1994, Mirage Resources Corporation conducted a regional precious metal reconnaissance program of these altered volcanic rocks. They identified several east-west (Potonico, Petancol and Mercedes) to northeast-trending (San Antonio) structural zones or trends hosting extensive silicification, quartz-sericite-pyrite (QSP) alteration and local zones of gold-silver-bearing quartz veinlets and breccia.

From 1994 through 2000, Mirage, spent US$ 320,000 on exploration activities including approximately 40 km of line cutting, stream sediment, soil and rock geochemical sampling programs and over 4 kilometers of trenching and 17 shallow core holes. Notable results of the trenching included 14.5 meters of 5.90 g/t Au and 2.22 g/t Ag, and 4.5 meters of 7.60 g/t Au and 71.06 g/t Ag from quartz stockwork and silicified zones, and outcrops containing up to 988 g/t Ag and 97.5 g/t Au. These and other gold- and silver-bearing samples were encountered in the Potonico gold-silver corridor during Mirage's programs, but the downturn in metal prices forced the abandonment of the project and its return to the government.

In June, 2003, Intrepid Minerals Corporation acquired the Cerro Petancol exploration license which generally corresponds to the previous Potonico license.

Au Martinique Silver Joins the Intrepid Team in the Exploration of the Potonico District

Pursuant to an agreement dated February 28, 2004 with Intrepid Minerals Corporation and Intrepid's wholly owned subsidiary, Triada S.A. de C.V., Au Martinique Silver was granted an option to earn a 50% interest in the Cerro Petancol Exploration License located in El Salvador. The terms of this agreement are provided in Au Martinique Silver's News Release #2005-1.

The Geology of the Cerro Petancol license area and the Potonico District

The Cerro Petancol property covers 49.5 km2 and is underlain by a mid-Tertiary volcano-sedimentary complex. This includes a lower sequence of sub-aerial andesitic volcanic flows and breccia and an upper sequence comprised of dacitic volcanic rocks, compositionally equivalent intrusive rocks and fine-grained clastic and chemical sedimentary rocks. The rocks of the license area have been strongly dissected by the major northeast-trending San Antonio fault, along with several auxiliary east-west structures including the Potonico, Petancol and Mercedes zones. The San Antonio fault and associated alteration have been traced to the northeast and out of the exploration area.

The Potonico District, including the Cerro Petancol area, contains several remnant volcanic centers that are accompanied by aerially extensive hydrothermal alteration and precious metal mineralization. Gold-silver enrichment is associated with polyphase silicification enveloped in domains characterized by intense QSP alteration. Previously described exploration activities have identified a distinctive geochemical (mercury-arsenic-molybdenum) signature in both the silicified and veined rocks.

The 2004-2005 Exploration Program at Cerro Petancol

Au Martinique Silver's exploration program at Cerro Petancol commenced in June, 2004 and consisted of the compilation, review and site verification of the Mirage work, including their reconnaissance geologic mapping and geochemical sampling. Sites previously reported to contain high grade precious metal values were re-sampled and contained up to 915 g/t Ag and 136 g/t Au. Dr. A.R. Miller P Geo, conducted these studies and concluded: "The recognition of the following three fundamentally important attributes on the Cerro Petancol property: 1.) a felsic volcanic center; 2.) structurally controlled precious metal-bearing silicified zones and 3.) phyllic alteration are typical of and conducive for the formation of economically viable epithermal high-grade gold-silver deposits" (A.R. Miller, May, 2005, Geological Appraisal & Exploration Summary: Cerro Petancol Exploration License; In-House Report). A stream sediment survey, completed in October of 2004 within the Cerro Petancol license consisted of 274 samples and identified three anomalous areas in the northern half of the license with geochemical signatures similar to the Potonico gold-silver anomaly. Dr. Miller concluded that the Potonico gold-silver corridor (Figure 2) remained the highest priority target area owing to the discovery of mineralized and silicified rocks. The elemental signature of mineralization within the corridor is gold, silver, mercury, antimony, arsenic and molybdenum.

Figure 2 is available at the following address:

The three newly identified areas in the northern portion of the license are located along the Mercedes and San Antonio trends, shown in Figure 2, and correspond with strong silicification and QSP alteration. The elemental signature, as stated above, comprised of known precious metal mineralization and of stream sediment anomalies is inferred to record processes consistent with the upper zones of a low sulfidation epithermal system.

In addition to the stream sediment program, Au Martinique Silver conducted an airborne magnetic survey over the Cerro Petancol exploration license (Figure 2). The integration of the stream sediment geochemical data with the map of total magnetic intensity revealed "that each of these target areas is directly related to structural lineaments and most importantly these target areas lie within domains that are defined by markedly reduced magnetic susceptibility" (A.R. Miller, May 9, 2005, Au Martinique Silver In-house Report) which may indicate extensive hydrothermal alteration associated with gold-silver mineralization. The superposition of geochemical and geophysical anomalies is compelling support for ongoing exploration to be focused in the central segment of the Potonico gold-silver corridor. This will include mapping of alteration and structural elements, and abundant rock sampling, to evaluate the potential of the other three target areas.

In its 2004 field program, Au Martinique Silver discovered multi-gram gold-bearing quartz veins (Table 1) approximately 600 meters northeast of the northeast corner of the Cerro Petancol license (Figure 2; Los Filos Zone). These veins are hosted in phyllic-altered andesite and are located along the east-northeast trending San Antonio domain, which is characterized by reduced magnetic susceptibility, inferring aerially extensive hydrothermal alteration. During the May, 2004 to April, 2005 exploration program conducted by Au Martinique Silver, approximately Cdn$220,000 was spent at Cerro Petancol. Work on the next phase of the project is well underway, and will be reported shortly.

Table 1. Summary of the Los Filos reconnaissance sampling program (n=30; 2004) showing gold values greater than 0.10 g/t Au (n=17). Analyses by CAS de Honduras, Tegucigalpa, Honduras.

Sample Exploration Gold Gold
Number Area (grams/tonne) (grams/tonne)
FA30+AA FA30+Grav.
1241 Los Filos 0.17
1242 Los Filos 0.21
1243 Los Filos 0.99 1.13
1244 Los Filos 1.52 1.50
1245 Los Filos 0.12
1247 Los Filos 6.53 6.63
1248 Los Filos 0.29
1249 Los Filos 0.27
1250 Los Filos 0.14
1471 Los Filos 0.24
1475 Los Filos 0.17
1479 Los Filos 0.42
1482 Los Filos 0.17
1495 Los Filos 1.02
1496 Los Filos 2.30 2.23
1497 Los Filos 5.00 5.25
1499 Los Filos 3.43 3.43

Au Martinique Silver is a TSX-Venture Exchange listed company with 20,680,050 common shares outstanding. The Company is engaged in the acquisition and exploration of gold and silver prospects in Latin America.

The statements in this Press Release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange has neither approved nor disapproved the information contained in this press release.

Contact Information

  • Au Martinique Silver Inc.
    Paul W. Pitman
    President P.Geo and designated Qualified Person
    (905) 456-5436
    Bay Street Connect
    Gus Garisto
    Investor Relations
    (416) 805-3106 (in construction)