Azteca Gold Corp.

Azteca Gold Corp.

July 03, 2009 19:52 ET

Azteca Gold to Drill Test Newly Discovered Prichard Carbonates for Massive Sulfides Potential at Two Mile

SPOKANE, WASHINGTON--(Marketwire - July 3, 2009) - Matthew Russell, President of Azteca Gold Corp. (TSX VENTURE:AZG) (the "Company") wishes to announce recent carbonate and sulfide preliminary assay results for DDH-006 and outline the drilling plan to test, for massive sulfides, newly discovered carbonates located at depth in the Prichard formation. Our targets are the same as we found in DDH-005A: lead-zinc massive sulfides with copper, silver, and gold. Both the newly wedged-off hole DDH-006B and previously wedged-off hole DDH-005B will be deepened during July and August with the expectation of intersecting massive sulfides within and/or adjacent to what we anticipate is a significant carbonate layer or unit. A conceptual sketch of this drill plan, anticipated carbonate unit geometry, and sulfide targets is being prepared for posting on our website. The reader is cautioned that these images are only conceptual in nature and the purpose is to give investors a better understanding of the type and potential geometry of mineralization we are attempting to drill.

On June 26, 2009 the Alberta Securities Commission advised the Company that as a result of a continuous disclosure review, it was required to clarify certain technical and geological information. In addition to this release, the Company intends to provide additional disclosure next week. It cautions that any previous statements suggesting mineable nature or potential economic viability, the application of a Sullivan-type bedded massive sulfide deposit model, or any inferences about metal grades based on geological descriptions of "massive sulfide" or other mineralization types should not be relied on.

Azteca Gold is pleased to announce the intersection of both sulfide stock-work veins above previously unknown calcic carbonates composed of what may be confirmed by the Company as ankerite (limestone with iron and magnesium carbonates). "We are very excited about this new discovery," said Matt Russell. "The adjacent massive sulfide stock-work veins above this limy (calcic) carbonate unit are a good indication that the carbonate unit may have served as a trap for concentrating hydrothermal sulfide solutions. The presence of anomalous gold within the sulfides along with anomalous tungsten is particularly exciting for several reasons. Limy carbonates are known to be associated with large gold deposits such as those found in the Carlin Trend in Nevada. Also, the gold that was mined to the immediate NE of the Two Mile property near Murray, Idaho area during the first half of the twentieth century was accompanied by a tungsten (W) mineral."

Russell went on to add, "Due to the apparent strength of the stock-work veining in DDH-006 and the fact that the most prevalent ore gangue mineral of the Silver Valley is carbonates (siderite and ankerite), we believe that our massive sulfide targets may be intersected within or immediately below these carbonates."

"It may come as a surprise to re-activate wedge-off hole DDH-005B , but after discovering carbonates one kilometer away in DDH-006 and re-examining the core from DDH-005B, we have good reason to expect that these same carbonates (conceptually a carbonate layer or unit) may be intersected within 500 FT of the current 8,744 FT hole depth of DDH-005B," said Mr. Russell. "We had stopped work on hole DDH-005B in mid-March because the calcite (calcium carbonate) veining we were encountering, though encouraging because it was accompanied by light stock-work veining, did not have enough strength to predict a target depth. But now with the ability to compare strata with hole DDH-006, we believe carbonates may be intersected within a relatively short distance of approximately 500 FT in hole DDH-005B, and that it may be worthwhile to test it for massive sulfides."

DDH-006: Carbonate Assay Results 11,081.5 - 11,173 FT
From (FT) To (FT) Interval (FT) Ca (%) Fe (%) Mg (%) CO3 (%)

11,081.5 11,083.0 1.5 1.16 1.93 0.47 4.35

11,106.5 11,108.0 1.5 1.20 2.05 0.45 4.81

11,140.5 11,143.0 2.5 1.57 2.69 0.67 5.48

11,158.0 11,160.5 2.5 1.43 1.93 0.54 6.84
11,160.5 11,163.0 2.5 1.10 2.10 0.60 4.88
11,163.0 11,165.5 2.5 1.69 2.06 0.61 7.50
11,165.5 11,168.0 2.5 2.29 2.28 0.74 8.46
11,168.0 11,170.5 2.5 2.34 2.90 0.70 7.26
11,170.5 11,172.0 1.5 2.65 2.28 0.76 10.30
11,172.0 11,173.0 1.0 6.26 4.38 1.62 20.90

It appears that the carbonates are reasonably wide (at least approximately 90 FT) and that calcium carbonate becomes more prevalent with depth. Whether the carbonate unit discovered will become predominately calcic (calcium carbonate or limestone) can only be determined with further drilling. The width of the carbonate unit may be larger than indicated, and this may be determined as more carbonate assays are obtained for the missing intervals in the above table as well as for adjacent intervals.

CO3 is the carbonate ion and its percentage represents the amount that is carbonate ion. The reader is cautioned that Ca, Fe, and Mg may be part of minerals other than carbonate, but given the amount of CO3 in each interval, balanced chemistry suggests that the majority of the Ca, Fe are paired with CO3. It is not clear to what extent the Mg is paired with CO3.

DDH-006: Stock-work Assay Results 10,460.5 - 10,888 FT
From To (FT) Inter- Au Ag Cu Pb Zn As Sb W
(FT) val (ppb) (ppm) (%) (%) (%) (ppm) (ppm) (ppm)

less less less
10,460.5 10,463.0 2.5 296 than 2 - - - 15 than 5 than 5

less less less
10,478.0 10,480.5 2.5 35 than 2 0.01 0.01 0.01 40 than 5 than 5

less less
10,678.0 10,680.5 2.5 than 5 than 5 0.01 0.01 0.03 22 7 5
less less
10,680.5 10,683.0 2.5 than 5 than 5 0.01 0.01 0.03 20 6 6
10,683.0 10,685.5 2.5 than 5 5.3 - 0.14 0.25 24 9 35

10,860.8 10,861.8 1.0 55 6.0 0.08 0.49 2.01 24 15 than 5
10,861.8 10,863.0 1.2 54 6.2 0.14 1.21 2.47 34 11 than 5
10,863.0 10,863.5 0.5 98 12.6 0.37 0.74 1.75 210 11 6
less less less
10,863.5 10,866.0 2.5 than 5 than 2 0.01 0.02 0.08 13 8 than 5
10,882.9 10,883.8 0.9 41 3.4 0.14 0.17 0.85 201 16 than 5
less less less
10,883.8 10,886.3 2.5 than 5 than 2 0.01 .02 0.08 22 9 than 5
less less less
10,886.3 10,888.0 1.7 than 5 than 2 0.01 .01 0.05 40 7 than 5

ppm - parts per million ppb - parts per billion

"The ratios of zinc to lead and lead to silver in the stock-work veins above are generally similar to those found in the massive sulfides reported for hole DDH-005A in January, except that both copper and gold as they ratio to the other metals may be higher, but more data and analysis is needed to make a conclusive determination. We believe that the massive sulfide stock that may be associated with these stock-work veins may be found in or immediately below the carbonate unit," said Mr. Russell. "The gold may be associated in part with tungsten, but more study is needed to make this determination as well." Tungsten above 5 ppm is considered anomalous in samples assayed in DDH-006.

The Company wishes to stress that the above assay values represent grades of stock-work veins and disseminated mineral and not adjacent massive sulfides like those reported in DDH-005A. In a recent press release we described these stock-works as intermittent massive or semi-massive, which, if we had assayed over much smaller, intermittent intervals, it is reasonable to assume some of the above assays may be multiples of those found in the assay results.

"In our press release dated June 18th, 2009, we indicated that bornonite and polybasite and their arsenide analogs may be prevalent minerals in these stockwork veins. Although there is some anomalous antimony (Sb) and arsenic (As) as given above, we now believe that a mixture of different lead, copper, and zinc sulfides with a minority of silver sulfasalts is more likely," said Mr. Russell.

Geologic Discussion

In a press release earlier this year we stated that our massive sulfide discovery of hole DDH-005A may be a Sullivan Style bedded or strata bound type of mineralization unlike the typical vein-type mineralization mined for over 100 years in the Silver Valley of Idaho. Based on the discovery of significant carbonates in DDH-006, we are re-evaluating this mineralization concept.

DDH-006: Assays for 9,998 -- 10,142 FT

From To (FT) Inter- Au Ag Cu Pb Zn As Sb W
(FT) val (ppb) (ppm) (%) (%) (%) (ppm) (ppm) (ppm)
AVG. less less
9,998.0 10,008.0 10.0 19 than 2 - - .01 22 14 than 5
INCL. Notable
Intervals less less less
10,005.5 10,008.0 2.5 37 than 2 - - .01 47 than 5 than 5

AVG less
10,008.0 10,028.0 20.0 27 than 2 - - 0.02 19 6 8
INCL. Notable
Intervals less
10,008.0 10,009.5 1.5 103 than 2 - - 0.01 33 6 7
10,013.0 10,015.5 2.5 22 than 2 - - 0.11 26 5 20

AVG less less
10,028.0 10,186.0 58.0 - than 2 - - 0.02 23 10 than 5

INCL. Notable
Intervals less less
10,137.0 10,139.5 2.5 than 5 than 2 - 0.01 0.08 36 8 15
10,139.5 10,142.0 2.5 6 than 2 - 0.04 0.11 85 11 20

"What is most interesting about this interval (9,998-10,142 FT) of predominately fine-grained mica and other silicates (most likely chlorites) is that no significant silver was found-- even though there is anomalous antimony and arsenic, which are necessary elements in tetrahedrite and its arsenide analogs which was expected as stated in a previous news release. It is our belief that since the stock-work veining found below this mica/silicate interval had significant silver associated with it, the absence of silver within this interval may be further indication that the carbonates at depth may have acted as an effective trap for sulfides containing silver," said Mr. Russell.

It is the intention of the Company to present more details of this fine-grained mica/silicate interval as our study of the core and assay results proceeds, especially because we believe that this interval represents a distinct layer or strata which can be identified visually and/or chemically in the core of DDH-005A, DDH-005B, and DDH-006. The importance of this strata is that it may be an altered host for the massive sulfides found in DDH-005A and may be in a format that is relatively unaltered in DDH-005B and DDH-006.

Exploration Plan

A wedge has been successfully set at 9,900 FT on hole DDH-006, which is where wedge- off hole DDH-006B will begin. The target depth remains the same at 11,500 FT to test for massive sulfides in or below the newly discovered carbonates. Since we do not know the width of the carbonates, the target depth may change with drilling. Wedging off the parent hole should be complete during the week of the July 6th and it is estimated that target depth should be accomplished by mid- to end of August. Oriented core methods will be used to determine strata and mineralization dip orientation at select intervals between 9,900 and 11,500 FT.

Re-entering DDH-005B is expected to begin the week of July 13th and it is estimated that target depth of 9,500 FT may be accomplished as early as the first half of August. Oriented core methods will also be used to determine the dip of the strata and mineralization at select intervals between 8,744 and 9,500 FT.

Plans to deepen hole DDH-005A are on hold until work on DDH-005B is complete as access is from the same parent hole DDH-005.

Longer Term Exploration Plan

After testing DDH-006 and DDH-005B to depth for carbonate-hosted massive sulfides, the focus would turn, results dependent, to additional wedge-off holes immediately adjacent to each of the parent holes DDH-005 and DDH-006 w. The Company has previously described its objective of "developing resources" by step out drilling, however, the Company cautions that the definition of mineral resource depends on grades and widths of mineralization as well as a preliminary economic study of potential mine-ability of the particular mineralized geometry. The premise for our exploration is carbonate and mica hosted or replacement strata-bound massive sulfides, and not the vein type massive sulfides for which the Silver Valley of Idaho is known, nor the massive sulfides that were mined in the main zone at the Sullivan in Kimberly B.C. 50% JV partner Silver Royal Apex will undertake this preliminary mine-ability study while Azteca Gold focuses on exploration and resource definition.

Assay and Interval Qualifications

Assays are uncut. True interval widths are not determinable at this time until oriented core techniques can be employed. Some irregular and short intervals have been taken to facilitate mineral identification.

Quality Assurance and Assay Specifications

Diamond drill core samples were processed per the Company's quality assurance policy whereby chain of custody is controlled by Azteca technical personnel who transferred the samples directly to American Analytical Labs, located at Osborne, Idaho. The assay lab has provided assay results to only those within Azteca's control pursuant to the list provided to them by Matt Russell. Assay results are preliminary and will be confirmed by the Company.

Assay methods include fire assay for Ag and Au. ICP (inter-coupled plasma) was used for lead, zinc, copper, antimony, arsenic, tungsten, and carbonates anions Ca, Fe, and Mg. Carbonate (CO3) was titrated.

The information contained in this news release has been reviewed and approved by Matthew Russell, P. Eng. President and CEO, the Company's Qualified Person as defined in National Instrument 43-101.

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. 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: 183,219,331

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

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