Batero Gold Corp.
TSX VENTURE : BAT

Batero Gold Corp.

July 27, 2011 08:00 ET

Batero Gold Reports 3 New Discoveries At the Batero-Quinchia Project & Extends Substantially La Cumbre Porphyry's Outer Boundary Limits & Commences a Phase 3 Exploration Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2011) - Batero Gold Corp. (TSX VENTURE:BAT) is pleased to report strong results from reconnaissance diamond drilling on the company's 100% owned Batero-Quinchia gold-copper exploration project, Risaralda Department, Colombia. The exploratory drilling has led to the discovery of three new zones of mineralization at three target areas (Manzanillo, La Lenguita and Matecana), and significant extensions to the La Cumbre porphyry. The Company is reporting results from 12 holes drilled in previously untested high-priority target areas as well as results from 4 step-out exploration drill holes on the La Cumbre porphyry. The 16 holes totalled 6,810.98 metres. A total of 15,745.13 metres in 33 holes have now been reported.

The Company, on July 23, 2011, completed its Phase 1&2 - 40,000 metre drill program on time and on budget. In light of this, the Company announced that on July 24, 2011 a Phase 3 - 12,500 meter diamond drill program comprising 5 drills commenced. The Phase 3 exploration drill plan is to test and fill-in the remaining untested areas from Matecana in the south to La Cumbre, Manzanillo, La Lenguita, and Dos Quebradas in the north. The Company anticipates Phase 3 drill results to be incorporated in the Company's first published NI-43-101 compliant resource estimate scheduled for year-end, 2011.

All of the mineralized zones encountered to date, together with the Amarilla Structural Corridor's epithermal gold mineralization, are part of a large, regional mineralizing system/mineral district covering more than 300 hectares. This district's recognized core extends over two kilometres from La Cumbre through the "El Centro" Zone (Manzanillo, La Lenguita, and El Cedral target areas) to Dos Quebaradas. Further, Batero's new exploration drilling discovery at Matecana, located approximately 800 meters SE from La Cumbre porphyry, indicates the district has strong potential to be expanded with further drilling. The potential successful expansion of new mineralization from Matecana to La Cumbre would further extend the North to South strike length of the project's gold-copper mineralization to approximately 3 kilometres. (See Project Plan View Map Figure 1 which is attached: http://media3.marketwire.com/docs/batero_0727_fig_1.pdf or please visit www.baterogold.com)

The Company has prepared a 3-Dimensional representative movie that visually models all reported gold mineralization intercepted and reported to date at the project. The 3-Dimensional model of all drill holes visually demonstrates the scope and potential continuity of the gold mineralization project-wide. Please download at www.baterogold.com.

In this news release Batero is reporting drill results for 16 holes (see Tables 1 and 2 attached below: http://media3.marketwire.com/docs/715851_table_1_and_2.pdf), bringing to 33 the total number of drill hole results released to date.

NEW DISCOVERY HIGHLIGHTS FROM 3 EXPLORATION TARGET AREAS

(see Figure 1: Plan View project map with drill hole traces and locations attached below: http://media3.marketwire.com/docs/batero_0727_fig_1.pdf or at www.baterogold.com)

1. "El Centro" – Manzanillo Target Area

There were three drill holes drilled from the same platform at the Manzanillo target area located approximately 350 meters NNE of the La Cumbre porphyry and approximately 500 meters west of the La Lenguita target area. All drill holes intercepted gold and copper mineralization.

Of significance, QAP-DDH-034 intersected from 9.7m below surface the highest grade interval at the project thus far from a zone of newly identified epithermal mineralization returning grades averaging:

  • 3.73 g/t Au and 0.02% Cu over 23.3m including;

    • 11.42 g/t Au over 5.8 metres

The epithermal mineralization discovered at Manzanillo in drill hole 34 potentially extends the Amarilla Structural Corridor's higher grade epithermal gold mineralization trend 600 metres to the NNW to Manzanillo from recognized epithermal gold mineralization recovered from approximately 600 metres of historic tunnels located in the central zone of the Amarilla Structural Corridor (see Figure 1: http://media3.marketwire.com/docs/batero_0727_fig_1.pdf and Gold Mines Acquisition news release dated May 10, 2011). These significant, shallow gold intercepts are currently unbracketted, and will be delineated in the Phase 3 drill program.

Additionally, porphyry mineralization was also intersected at Manzanillo in holes 26 and 38 lending evidence that the gold and copper mineralization may be expanded south to the La Cumbre porphyry and NNE to the La Lenguita new porphyry discovery. This is significant as it demonstrates further potential that La Cumbre porphyry may extend its boundaries significantly.

Highlight Intervals
Hole ID Target Area From (m) To (m) Length (m) Au (g/t) Cu (%)
QAP-DDH-026 Manzanillo 11.00 48.00 37.00 0.81 0.02
and 192.13 251.00 58.87 0.24 0.06
and 290.80 362.62 71.82 0.32 0.10
QAP-DDH-034 Manzanillo 9.70 41.00 31.30 2.85 0.03
including 9.70 33.00 23.30 3.73 0.02
QAP-DDH-038 Manzanillo 0.00 83.50 83.50 0.46 0.02
and 362.00 477.00 115.00 0.47 0.07
and 362 477 115 0.47 0.07
*Lengths represent down hole core lengths.

2. "El Centro" - La Lenguita Target Area

There were three drill holes drilled from the same platform at La Lenguita located approximately 850 meters south of the Dos Quebradas porphyry and approximately 500 metres east of Manzanillo's new discovery. All holes intercepted gold and copper mineralization with significant intervals intercepted from near surface as in drill hole QAP-DDH-14 which grades 0.70 g/t Au and 0.08% Cu over 43.0m from 14.0m below surface and drill hole QAP-DDH-07 which grades 0.30 g/t Au and 0.07% Cu over 100.7m from 8.4m below surface. These shallow gold and copper intercepts are currently unbracketted.

Porphyry-related mineralization was discovered in all the exploratory drill holes indicating porphyry mineralization may be expanded west approximately 500 metres to the new discovery at Manzanillo and north approximately 850 metres to the Dos Quebradas porphyry. This is significant as it demonstrates further evidence that porphyry-related mineralization may be linked between exploration target areas and the La Cumbre and Dos Quebradas porphyry centres.

Highlight Intervals
Hole ID Target Area From (m) To (m) Length (m) Au (g/t) Cu (%)
QAP-DDH-007 La Lenguita 8.40 109.10 100.70 0.30 0.07
and 195.60 242.75 47.15 0.26 0.11
and 319.40 349.9 30.50 0.27 0.09
QAP-DDH-014 La Lenguita 14.00 57.00 43.00 0.70 0.08
and 130.00 192.00 62.00 0.44 0.06
QAP-DDH-018 La Lenguita 10.00 152.00 142.00 0.33 0.07
including 10.00 77.00 67.00 0.41 0.08
*Lengths represent down hole core lengths.

3. Matecaña Target Area

The Matecaña porphyry discovery occurs approximately 800 meters southeast of the La Cumbre porphyry on/or adjacent to the Amarilla Structural Corridor (see Plan Map – Figure 1: http://media3.marketwire.com/docs/batero_0727_fig_1.pdf). Three drill holes were completed and two drill holes intersected significant new discovery porphyry-related mineralization. These holes were drilled to test surface gold anomalies and geophysical anomalies, and intersected gold and copper mineralization indicating strong potential for further porphyry style mineralization in the target area. The new porphyry discovery made at Matecaña is a top priority to follow-up and aggressively delineate drill. Gold and copper mineralization intercepted in the Matecaña discovery holes over significant intervals starting from near surface is considered highly prospective.

Highlight Intervals
Hole ID Target Area From (m) To (m) Length (m) Au (g/t) Cu (%)
QAP-DDH-012 Matecaña 23.00 100.00 77.00 0.35 0.03
QAP-DDH-021 Matecaña 19.70 47.05 27.35 0.50 0.05
and 113.20 156.10 42.90 0.27 0.05
*Lengths represent down hole core lengths.

4. "El Centro" - El Cedral Target Area

Three drill holes, QAP-DDH-25, 32 and 39 were drilled from the same platform on different azimuths and angles and located approximately 250 metres ENE from the platform at La Lenguita where newly discovered porphyry-related mineralization near surface was intersected. No significant mineralization was intersected at El Cedral with this first pass of exploration drilling. The target area continues to warrant further follow-up due to notable anomalous Phase 1 exploration geochemistry, coincident anomalous ground geophysics, and supportive mapping data from the Phase 1 field mapping program.

LA CUMBRE PORPHYRY EXPLORATION STEP-OUT DRILLING RESULTS

Four drill holes were drilled to test the outer boundaries of La Cumbre porphyry. Three drill holes successfully intercepted long intervals of gold and copper mineralization which have contributed significantly to the expansion of the La Cumbre porphyry boundaries to the north approximately 100 metres, to the north-northeast approximately 250 metres, and to the east approximately 300 metres. (See Project Plan View Map Figure 1 which is attached: http://media3.marketwire.com/docs/batero_0727_fig_1.pdf or please visit www.baterogold.com)

Hole QAP-DDH-30, an angled exploratory hole, intersected 304m, starting at 10m below surface, averaging 0.47 g/t Au and 0.08% Cu and was collared stepping out approximately 100m from the porphyry's northern boundary.

Hole QAP-DDH-19, an angled exploratory hole, was drilled approximately 250 meters NNE from the outer boundaries of the La Cumbre porphyry and intersected wide zones of gold and copper mineralization (see table below).

Holes QAP-DDH-24 and 29, were angled exploratory holes drilled on different azimuths from the same platform, and were collared approximately 300 meters east from the outer boundaries of the La Cumbre porphyry. DDH-29 intersected two intervals of gold porphyry mineralization east of the 100% owned artisanal tunnels associated with the Amarilla Structural corridor. DDH-24 drilled towards the NE may have been drilled off the trend of the Amarilla Structural corridor.

Additional drilling is planned to test the approximately 300 X 250 metre area between these significant new discoveries and the known gold and copper mineralization at the La Cumbre porphyry. The Company is very pleased with the new, extended areas of gold and copper mineralization discovered with this aggressive step-out exploration drill program.

Highlight Intervals
Hole ID Zone From (m) To (m) Length (m) Au (g/t) Cu (%)
QAP-DDH-019 La Cumbre 163.00 213.30 50.30 0.44 0.04
and 266.90 371.00 104.10 0.39 0.08
QAP-DDH-029 La Cumbre 32.00 75.10 43.10 0.23 0.02
and 170.25 185.65 15.40 0.27 0.02
**QAP-DDH-030 La Cumbre 10.00 314.00 304.00 0.47 0.08
including 124.10 314.00 189.90 0.57 0.09
including 129.55 220.40 90.85 0.80 0.14
*Lengths represent down hole core lengths.
** Hole QAP-DDH-030 has partial release of hole analyses; company is waiting on assays for the bottom portion of the hole and will report the complete hole in an upcoming press release if warranted.

Corporate Update

The Company is pleased to announce the appointment of Kieran Downes, Ph.D., P.Geo., as the Qualified Person for the Batero-Quinchia project.

An accomplished mining professional, Mr. Downes holds a B.Sc. in Geology from University College Galway (1971) and a Ph.D. in Geology from Dublin University (1974). Among his credentials, Mr. Downes was a Post-Doctoral Fellow at the Institute for Industrial Research & Standards, Dublin (1974-1977) before joining Minatome S.A. of Paris as an exploration geologist. He served as a senior Exploration Manager with Cameco Corporation until 1992. From 1992 to March 2011 Mr. Downes was President, CEO and QP for Golden Peaks Resources Ltd. a TSX listed junior exploration company with a focus on resource properties in Latin America.

Darren Anderson, P.Geo., will continue to serve as the Company's QA/QC consultant.

Kieran Downes, Ph.D., P.Geo., the qualified person for the company, has reviewed the accuracy of the technical portion of the news release.

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 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.

ON BEHALF OF THE BOARD OF BATERO GOLD CORP.

Brandon Rook, President & CEO

Batero Gold Corp.

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 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: 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.

To view Figure 1 – Plan View – Drill Location Map, please visit the following link: http://media3.marketwire.com/docs/batero_0727_fig_1.pdf

To view Table 1 - Drill Hole Intercepts and Table 2 - Drill Hole Specifications, please visit the following link: http://media3.marketwire.com/docs/715851_table_1_and_2.pdf

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