Batero Gold Corp.
TSX VENTURE : BAT

Batero Gold Corp.

January 20, 2011 08:16 ET

Batero Gold Intersects 452 Metres Grading 0.60 g/t Gold and 0.12% Copper from Surface on Initial Step-Out Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2011) - Batero Gold Corp. (TSX VENTURE:BAT) is pleased to announce that initial results from the first two holes of its Phase 1 drill program at the company's 100-per-cent-owned Batero-Quinchia Project in Risaralda Department, Colombia, have returned significant intervals of gold and copper mineralization.

The company's drill program is focused primarily on defining the mineralized extents of previously discovered porphyry bodies (2006) and to test newly discovered target areas.

Of the two drill holes (QAP-DDH-001 and 002), at La Cumbre porphyry that showed notable results, hole QAP-DDH-002, which intersected mineralization continuously from surface to a depth of 452 metres, is of particular interest.

"We are pleased to see drill hole 2's gold and copper mineralization extend the entire length of the drill hole. Significant step-out intercepts like this will potentially contribute considerable tonnage towards our resource calculation," said Brandon Rook, President and CEO.

With the recent completion of a $15.75-million financing, Batero is well positioned to aggressively drill the Batero-Quinchia project, with the goal of completing a compliant NI 43-101 resource estimate during the second half of 2011, said Mr. Rook.
Batero commenced its Phase 1 – 16,000 metre drill program in late October, 2010, and presently three drills are operating at the project with a fourth drill rig mobilized and scheduled to start drilling the week of January 24th, 2011.

Significant highlight results from drill holes 1 and 2 include:

  • Drill Hole 2: from 0 metres to end of drill hole at 550 metres grading 0.53 g/t Au and 0.10% Cu, including 0 metres to 452 metres grading 0.60 g/t Au and 0.12% Cu
     
  • Drill Hole 1: from 0 metres to 55 metres grading 0.67 g/t Au and 0.12% Cu
     
     *Interval lengths represent down hole distance and not true width.

Other Highlights include:

  • Drill hole 2 was located on surface approximately 275 metres SSE from 2006 historic drill hole 8 and approximately 175 metres ENE from 2006 historic drill hole 18
     
  • Average drilling length of drill holes from 2006 historic drilling on La Cumbre were approximately 308.34 metres
     
  • Drill hole 2 ended in gold and copper mineralization at 550.50 metres, significantly deeper than the majority of the 2006 historic drill holes
     
  • Step out of drill hole 2 verifies the potential large tonnage possibility at La Cumbre due to significant step-out from known gold and copper mineralization intersected from the 2006 historic drill program
     
  • 2006 historic drill holes are anticipated to be included in the future NI-43-101 resource estimate, therefore the current Phase 1 drill program is building upon significant positive gold and copper mineralization previously defined

*Maps, drill hole profiles for hole 1 and 2 and 2006 historic drill holes at La Cumbre, and drill core photos may be viewed at www.baterogold.com in the project section of the website.

QAP-DDH-002 is located approximately 275 metres SSE of 2006 historic discovery hole DQ-DDH-008, which graded 276.65m @ 0.75 g/t Au and 0.14% Cu and 175 metres ENE from 2006 historic DQ-DDH-018, which graded 336.00m at 0.55 g/t Au and 0.12 % Cu (Click here to see Figure 1 - Drill Hole Location Map). 

Previous drilling completed in 2006 comprised a total of 4090 metres in fifteen drill holes. Five drill holes were successfully completed at La Cumbre porphyry. The 2006 historic drill holes were drilled to an average depth of 308.34 metres. The average drilling depth of the first seven drill holes completed at La Cumbre porphyry in this current Phase 1 drill program has been 544.23 metres for a total of 3809.50 metres. (Click here for drill hole profiles of each individual 2006 drill hole at La Cumbre porphyry - see Figure 4 and 5). The company is now reviewing and compiling drill hole data from its current drilling campaign and will report further results once analyzed and verified. 

The company is currently drilling QAP-DDH-007 at La Lenguita target (first drill hole at this target area), and QAP-DDH-009 and QAP-DDH-010 at La Cumbre porphyry. The fourth drill rig at the Project has been mobilized to the company's high-priority drill target at Matecaña and is anticipated to start drilling the week of January 24, 2011.

Recent ground geophysics identified a potential target area from IP and magnetic geophysical data at La Lenguita, complementing the geochemical work that has been completed to date. The company considers the potential of this target area as high priority.

Also, Matecaña is a high priority drill target covering an area approximately 400m x 500m defined by an airborne and ground geophysical survey and is located one kilometre southeast of La Cumbre porphyry and 340 metres below in elevation from La Cumbre porphry. The recent geochemical sampling program resulted in values similar to what has been identified at La Cumbre as well as a coincidental geophysical signature (see previous press release, September 9, 2010).

QAP-DDH-001:

This hole was collared at 421145E, 585195N, at 1778m elevation and was drilled at an orientation of 280/-60 for a total depth of 599.90 metres. (Click here to see Figure 2 – QAP-DDH-001 profile and results)  This hole tested the eastern margin of La Cumbre porphyry. Predominantly, the hole drilled through alternating fine to medium grained, variably altered, fine to medium grained porphyritic quartz diorite sequences followed by approximately 66.00 metres of hydrothermal breccia near the bottom of the hole before shutting the hole down in basalt. Mineralization is composed mostly of stockwork veining of pyrite and magnetite veinlets with minor amounts of disseminated chalcopyrite, bornite, and molybdenite. Alteration is mainly chloritic throughout, with more abundant silicification at the top of the hole and biotitic near the bottom.

QAP-DDH-002:

This hole was collared at 421145E, 585195N, at 1778m elevation and was drilled at an orientation of 330/-70 for a total depth of 550.50 metres. (Click here to see Figure 3 – QAP-DDH-002 profile, results and drill core photos)  This hole was drilled toward the centre of La Cumbre porphyry. Predominantly, the hole drilled through alternating fine to medium grained, variably altered quartz diorite sequences with occasional small intercepts of hydrothermal breccia throughout the hole. The main alteration corresponds to biotitic with some areas with chloritic alteration and strong silicification in some hydrothermal breccias. The mineralization is mainly pyrite, chalcopyrite, and magnetite located in stockwork veinlets and disseminated throughout. Also present are traces of bornite, and molybdonite.

HIGHLIGHTS OF DRILL ASSAY RESULTS (0.30 G/T AU CUT-OFF GRADE)  
Hole ID Target Area Hole Length (m ) From (m ) To (m ) Interval (m ) Au (g/t ) Cu (% )
                           
                           
QAP-DDH-001 La Cumbre 599.90   0.00   55.00   55.00   0.67   0.12  
        67.00   107.00   40.00   0.33   0.08  
        129.00   195.00   66.00   0.37   0.07  
                           
QAP-DDH-002 La Cumbre 550.50   0.00   550.50   550.50   0.53   0.10  
including       0.00   452.00   452.00   0.60   0.12  
 
*Interval lengths represent downhole distance and not true width.

Batero Gold Vancouver Presentation

Batero Gold will be hosting a presentation:

When: Monday, January 24, 2011 – 2:00 p.m. (Pacific Time)

Where: Fairmont Pacific Rim Hotel, Pearl Room, located on the 2nd Floor - 1038 Canada Place,

RSVP: Please RSVP as space will be limited.

The Batero-Quinchia Project is located in the prolific Middle Cauca Belt which hosts two gold deposits: Marmato deposit (Medoro Resources) located approximately 20 kilometres north of the Batero-Quinchia Project and La Colosa deposit (AngloGold Ashanti) located approximately 100 kilometres south of the Batero-Quinchia Project. This belt is also host to other recognized porphyry gold deposits including Titiribi, La Mina, and Quebradona.

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 securely shipped in core boxes to Batero's core processing facility in Pereira, Colombia. Here the core is logged in detail, cut and sampled, and all QC samples are introduced before the samples are shipped to ALS Chemex's sample preparation facility in Bogota, Colombia. Prepared samples are then shipped by ALS to their analytical facility in Lima, Peru for analyses.

Gold is fire assayed using a 50.0 gram aliquot sample using an Atomic Absorption finish (AA) and multi-element analysis is by Four Acid Digestion using and 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, the qualified person for the Company, has reviewed the accuracy of the technical portion of the news release.

For further information please go to our website at www.baterogold.com.

ON BEHALF OF THE BOARD OF BATERO GOLD CORP.

Brandon Rook, President & CEO

About Batero Gold:

Batero Gold Corp. (TSX VENTURE:BAT) is a 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 1407.43 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 whom have contributed to numerous significant discoveries throughout Colombia. Batero plans to leverage its 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: This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words expects, plans, anticipates, believes, intends, estimates, projects, potential and similar expressions, or that events or conditions will, would, may, could or should occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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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