Azteca Gold Corp.

Azteca Gold Corp.

October 06, 2010 20:04 ET

Azteca Gold Completes 6760 FT Core Hole at Two Mile

CALGARY, ALBERTA--(Marketwire - Oct. 6, 2010) - Matthew Russell, President of Azteca Gold Corp. ("Azteca" or the "Company") (TSX VENTURE:AZG) is pleased to announce that diamond drill core hole DDH-009 has been completed to a depth of 6760 FT. The Company feels its technical objectives for DDH-009 with regards to investigating up-dip hinge sulfide mineralization within the Two Mile Anticline were achieved within the estimated 7000 FT TD. Logging of the core is ongoing and preliminary selection of sample intervals for assaying is complete. The hole has been left in good condition to re-enter and advance at a later date if desired.

"We are pleased to have successfully achieved a third, deep parent hole at Two Mile from which to explore the Two Mile anticline within the Belt Super group Meta-sediments," exclaimed Mr. Russell. "DDH-009 at 6760 FT joins the DDH-005 series holes at maximum 10,242 FT and the DDH-006 series holes at maximum 11,373 FT. In the larger context, these three deep holes will allow us to compare and contrast the strata from three distinct locations along the presumed Two Mile anticline structure."

From preliminary examination of the core, the Company has plans, financing permitting, to send out the following intervals for assay from DDH-009:

1335.5 FT – 1399.5 FT
1969.0 FT – 2087.0 FT
2250.0 FT – 2530.0 FT
3350.0 FT – 3650.0 FT
4600.0 FT – 4760.0 FT
4975.0 FT – 5559.5 FT
5629.0 FT – 6048.0 FT
6101.0 FT – 6760.0 FT

Of interest from core logs and preliminary observations of the core by the Company's QP Richard Nanna are horizons of quartzite and carbonate alteration with disseminated sulfides, quartz monzonite with stockwork of sulfide bearing veins, and silicified and altered quartz monzonite and diorite. 

The Company continues to log the core and is in the process of selecting and preparing samples to be sent out for fine grained sulfide mineral identification.

"We are anxious to get the entire core hole logged, petrology work completed and areas of interest assayed," explained Richard Nanna, the Company's QP. "With these, we can check correlations with mineral intercepts in the other holes drilled to date within the Two Mile Project." For purposes of helping correlate strata and areas of interest between DDH-006 and DDH-009, Azteca also intends to send additional sections of DDH-006 in for assay, including the following intervals:

4637 FT – 5236 FT
5977 FT – 6247 FT
6276 FT – 6397 FT
6666 FT – 6900 FT

Location of DDH-009
Location of Drill hole -009 is at the base of Two Mile Gulch near Osburn Idaho. Drill hole DDH-009 is collared at 5264772 Northing and 577233 Easting at an elevation of 872 meters (2960 ft) MSL, in UTM NAD 27, Zone 11 coordinates (meters). The hole is oriented at approximately 9 degrees from vertical at an Azimuth of 103 Degrees from True North. The Total Depth of the hole reached was 2060.5 meters (6760 ft.)

International Directional Drilling Services (IDS) performed a down-hole electronic gyro survey from the collar to a depth of 1864 meters (6115 ft ) on Sept 7th, 2010. At time of completion of the Hole, a magnetic Survey was completed to full depth of 2060 m (6760 ft) with tie points to the IDS gyro Survey using a REFLEX magnetic down-hole multi-shot survey tool.

At Target Depth, the location of the hole is computed to be at 5264652 Northing and 577530 Easting at -1162.75 meters (MSL) in NAD 27 coordinates. The TD location of the hole is 297 m (974. Ft) East and 120 m (394 ft) South from the collar location at a true vertical depth of 2034.5 m (6675 ft).

Compared with the bottom of Hole -005A, Hole DDH-009 is 740 Meters (2427 ft) in true distance from the bottom TD location of Hole -005A at 2677 m (8784 ft ) depth. That projected line from TD of DDH-009 to the TD of DDH-005A is at an azimuth of 96 Degrees from true north. As projected in Plane A2-A2' (as given in a July 2, 2010 press release), the distance of separation between the bottom of DDH-009 and DDH-005A is 600 meters (1968 ft).

Drill Plan
The Company continues to evaluate how best to investigate hinge sulfide mineralization within the Two Mile Anticline with additional parent holes. Evaluation of DDH-009 logs and assays along with correlation work with adjacent holes will assist in prioritizing further drilling at Two Mile.

Financing Plan
The Company anticipates the need for equity financing to accomplish further drilling and assay work at Two Mile as well as for general corporate purposes.

The technical and scientific information contained in this news release has been reviewed by the Company's QP Richard Nanna, who is also a director of the Company.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing by either the Company or its joint venture partner. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 343,933,432

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

  • Azteca Gold Corp.
    Jon Slizza
    VP of Finance and Investor Relations
    Cell: 1-509-981-2020