Batero Gold Corp.
TSX VENTURE : BAT

Batero Gold Corp.

August 05, 2011 08:00 ET

Batero Gold Intersects 332.12 Metres Grading 0.76 g/t Gold and 0.11% Copper at Batero-Quinchia Project, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2011) - Batero Gold Corp. (TSX VENTURE:BAT) is pleased to report the latest drill results from an additional five holes (2,401.34 metres) drilled on the company's 100-per-cent-owned Batero-Quinchia project in Risaralda, Colombia. The Company has now reported results for 38 holes (18,149.47 metres).

Significant La Cumbre highlights include:

  • Vertical drill hole LC-007 intersecting 9.00 m below surface 332.12 metres grading 0.76 g/t gold and 0.11% copper, including 203.10 metres at 0.81 g/t gold and 0.13% copper
  • Vertical drill hole LC-002 intersecting 6.50m below surface 342.50 metres grading 0.61 g/t gold and 0.10 % copper; including 175.62 metres at 0.74 g/t gold and 0.11% copper
  • Angled drill hole QAP-DDH-041 intersecting 4.57m below surface 334.28m grading 0.40 g/t Au and 0.11% copperdrilled at La Cumbre's southern extent and filled in to the southwest an important area not yet covered by previous drilling

"These drill results confirm our strategic approach to further delineate and infill La Cumbre porphyry, to extend its boundaries laterally and at depth. We are also very pleased on the strong success rate of our exploration drilling program with new porphyry mineralization intersected at 'El Centro' (Manzanillo, La Lenguita and El Cedral)," said Brandon Rook, President and CEO. "We are fast-tracking the delineation drilling over a distance of 2+ km's, from La Cumbre to 'El Centro' up to Dos Quebradas with the goal to incorporate the newly discovered mineralized zones in the upcoming resource estimate planned for Q4 - 2011."

Drilling continues to expand La Cumbre gold-copper porphyry to the northwest and southeast. Long intersections with strong gold mineralization were intersected in three in-fill holes (LC-002, 005 & 007) and one extension hole to the south (QAP-DDH-041). La Cumbre porphyry mineralization has now been intersected over a surface area of approximately 650 meters X 410 meters, and remains open in all directions.

Table 1 below summarizes assay results. To see Figure 1 - Project Plan View Map showing drill hole locations, please visit the following link: http://media3.marketwire.com/docs/bat805i.pdf.

Also, and importantly, exploration hole QAP-DDH-033, drilled at 'El Centro' (El Cedral) zone, intersected gold and copper mineralization.

"This is considered a new discovery at the project and is very important as this mineralization demonstrates further evidence that porphyry-related mineralization may be linked between exploration target areas and La Cumbre – Dos Quebradas porphyry centres," said President and CEO, Mr. Rook.

QAP-DDH-033 is located approximately 250 metres ENE from the platform at La Lenguita where newly discovered porphyry-related mineralization near surface was intersected (News Release dated July 27, 2011).

Batero commenced its phase 3 – 12,500-metre drill program in July 2011 due to the discovery of three new zones of mineralization (News Release: July 27, 2011). These new discovery zones were at 'El Centro' (Manzanillo, La Lenguita), "Matecana", 800 meters SE of La Cumbre porphyry, and also significant new discoveries from large step-out drill holes to the East and ENE at La Cumbre porphyry. Porphyry mineralization at Manzanillo and La Lenguita has characteristics of the historical low‐grade gold-copper porphyry mineralization initially found at La Cumbre and Dos Quebradas and will continue to be delineated to expand both the grade and extent for these new discovery areas. The new discovery announced today at El Cedral within the El Centro zone reflects similar characteristics. These significant discoveries of gold and copper mineralization may be expanded from La Cumbre porphyry to the NNE to Dos Quebradas which demonstrates further potential for the boundaries of La Cumbre porphyry to be expanded project and area wide. The Company will further delineate to the emerging ('El Centro') zone to link its mineralization with La Cumbre and Dos Quebradas porphyries.

The company will also continue to define the major epithermal discovery at Manzanillo (intercepts 3.73 g/t Au and 0.02% Cu over 23.3 m including 5.8 m grading 11.42 g/t Au and 0.01 % Cu - see New Release July 27, 2011). These significant grades of mineralization found at or near surface will continue to be delineated along the trend to the recognized epithermal gold mineralization in the Amarilla Structural Corridor, located approximately 600 metres on strike SSE at the historical gold mines recently purchased (News Release, May 10, 2011). Also, and of important note, further along strike approximately 600 metres SSE at Matecana, artisanal tunnels have been recently discovered reflecting similar epithermal characteristics and are being followed up.

The Company has prepared a 3-Dimensional representative video to portray gold mineralization intersected through drilling activities thus far. This model will be updated as new results are obtained. (http://www.baterogold.com/i/video1/Video-July26-2011.html ).

Table 1 - Significant Intersections
Hole ID Target Area From (m ) To (m ) Length (m ) Au (g/t ) Cu (% )
QAP-DDH-033 El Cedral (exploration) 193.95 265.80 71.85 0.30 0.07
QAP-DDH-033 324.00 399.00 75.00 0.26 0.09
QAP-DDH-041 La Cumbre 4.57 338.85 334.28 0.40 0.11
QAP-DDH-041 366.23 427.0 60.77 0.45 0.06
LC-002 La Cumbre (infill) 6.50 350.00 342.50 0.61 0.10
including 6.50 182.12 175.62 0.74 0.11
including 182.12 350.00 167.88 0.48 0.08
LC-005 La Cumbre (infill) 3.04 501.39 498.35 0.46 0.06
including 3.04 68.0 64.96 0.81 0.05
including 149.35 437.0 287.65 0.49 0.07
LC-007 La Cumbre (infill) 9.00 341.12 332.12 0.76 0.11
including 9.00 212.10 203.10 0.81 0.13
* Interval lengths represent downhole distance and not true width with the exception of LC-002 and LC-007 which are vertical drill holes.
Table 2 - Drill Hole Specifications
Hole ID Easting Northing Elevation Azimuth Dip Depth
LC 002 420778 585475 1926.0 0 -90 350.00
LC 005 420700 585493 1979.0 235 -65 501.39
LC 007 420800 585450 1918.5 0 -90 350.00
QAP-DDH-033 421597 586077 1835.0 280 -60 599.50
QAP-DDH-041 421149 585192 1826.0 255 -65 600.45

TECHNICAL DATA

La Cumbre

Hole QAP-DDH-041 -- one of four holes drilled from the same platform at different azimuths and dips -- was drilled to the southwest towards hole DQ-DDH-18, which intersected 336.00 meters grading 0.55 g/t Au and 0.12 % Cu. Assays are pending from additional holes drilled in the area. Holes LC-002, LC-005 and LC-007 were drilled to infill the area between holes QAP-DDH-022/QAP-DDH-032 and DQ-DDH-16 at the northwest end of La Cumbre porphyry. Holes LC-002 and LC-007 -- drilled approximately 50 meters apart -- were 350-meter-long vertical holes. Both intersected long intervals of high-grade gold mineralization. Hole LC-005 also intersected a long interval of strong gold mineralization. This hole was drilled to the SSW towards 2006 historic hole DQ-DDH-16 from the same platform as QAP-DDH-035 (assays pending) and LC-001 (assays pending). These three drill holes successfully intercepted long intervals of gold and copper mineralization and have contributed significantly in defining the depths and extent of the porphyry.

El Centro (El Cedral)

The El Cedral target area's drill hole QAP-DDH-033 is located approximately 250 metres ENE from the platform at La Lenguita where newly discovered porphyry-related mineralization near surface was intersected (News Release dated July 27, 2011). This hole, one of three drilled from the same platform on different azimuths and dips, was drilled towards the northwest in a previously untested area at the north end of El Centro. The hole intersected gold-copper mineralization in potassic altered basaltic rocks underlying a gold-in-soil anomaly. The potassic alteration and the gold-in-soil anomaly indicate the diorite, which is host to La Cumbre and Dos Quebradas porphyries, probably continues between La Cumbre, El Centro and Dos Quebradas. Further drilling will be undertaken in this area as part of the Phase 3 drill program.

To see all maps and figures please visit www.baterogold.com.

Sample preparation, assays and quality assurance/quality control

Core is collected and initially logged at Batero Gold's drilling camp at the project area. The core is then shipped securely in core boxes to Batero's core processing facility in Pereira, Colombia, where it is logged in detail, cut and sampled. All QC samples are introduced before shipment to ALS Chemex's sample preparation facility in Bogota, Colombia. Prepared samples are then shipped to ALS's analytical facility in Lima, Peru.

Gold is fire-assayed using a 50.0 gram aliquot sample and Atomic Absorption finish (AA). Multi-element analysis is achieved by Four Acid Digestion and an Induced Coupled Plasma (ICP) finish.

The Company's QA/QC program includes the regular insertion of blanks, multiple certified assay standards and duplicate samples into the sample shipments. These QC samples are inserted in every assay batch, which is composed of 25 samples. Regular monitoring of these QC samples is a critical part of Batero Gold Corps QA/QC protocols.

Darren Anderson, P.Geo., is the Company's QA/QC consultant.

Kieran Downes, Ph.D., P.Geo.,a qualified person as defined by National Instrument 43-101, is responsible for the technical information provided in this release.

ON BEHALF OF THE BOARD OF BATERO GOLD CORP.

Brandon Rook, President & CEO

About Batero Gold:

Batero Gold Corp. (TSX VENTURE:BAT) is a well capitalized Vancouver-based precious and base metals exploration and development company focused in Colombia's emerging and prolific Mid-Cauca porphyry gold and copper belt. Batero is located within the Quinchia district and has 100% ownership in the Batero-Quinchia Project, comprising a 1407 hectare tenement. The Batero-Quinchia Project includes three known gold porphyry target centres. The Quinchia district and Batero's project is considered socially stable and mining friendly and is supported with a comprehensive infrastructure network. Batero has assembled a strong management and technical team in Colombia that has contributed to numerous significant discoveries throughout Colombia. Batero plans to leverage its strong share structure with strategic local and regional relationships, and long-term financial partners, to develop its prospective project into what the Company believes will be Colombia's next major mining venture.

FORWARD LOOKING STATEMENTS: Certain of the statements and information in this press release constitute "forward-looking statements" or "forward-looking information" Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "believes", "plans", "estimates", "intends", "targets", "goals", "forecasts", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements or information relate to, among other things: the timing and scope of expected diamond drilling; the timing of the delivery of a resource estimate on the Batero-Quinchia project; potential existence and size of mineralization within the Batero-Quinchia project; timing of receipt of permits and regulatory approvals; the sufficiency of the Company's capital to finance the Company's operations; geological interpretations and potential mineral recovery processes.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuations in the spot and forward price of gold or certain other commodities; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Colombia or other countries in which the Company may carry on business in the future; the uncertainties involved in interpreting geological data; business opportunities that may be presented to, or pursued by, the Company; operating or technical difficulties in connection with mining activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks).

This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Filing Statement dated as of June 22, 2010 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

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