SOURCE: CB Gold Inc.

CB Gold Inc.

August 10, 2016 05:30 ET

CB Gold Announces Acquisition of the High Grade Santa Ana Historic Silver Mine

VANCOUVER, BC--(Marketwired - August 10, 2016) - CB Gold Inc. (TSX VENTURE: CBJ) is pleased to announce the acquisition of 100% of the Santa Ana Silver Project from Condor Precious Metals Inc. ("Condor"). Santa Ana covers the core of the historic Mariquita Silver District, one of Colombia's most prolific colonial silver mining camps with production dating back to the sixteenth century.

Preliminary prospecting, rock chip sampling, and drilling were carried out by Condor between 2012 and 2014. Chip samples of vein material collected in 2012 from the historic Santa Ana mine tunnels returned assay values as high as 11 g/t Au and 2,820 g/t Ag. Other high silver values included 929 g/t Ag, 600 g/t Ag and 443 g/t Ag. Chip samples collected from outcrops in 2013-2014 returned several high gold values along with high silver values, including: 68 g/t Au and 422 g/t Ag; 48 g/t Au and 81 g/t Ag; and 36 g/t Au and 163 g/t Ag.

Condor conducted a preliminary diamond drilling programme in 2012 completing eight shallow holes for a total of 1,170 metres. All of the holes were drilled from a single platform and tested the down-dip extension of vein mineralization below the historic Santa Ana mine tunnels. The results further highlighted the potential for bonanza-type silver-gold veins, with drill intersections including: 1,751 g/t (51 oz/t) AgEq over 3.04 metres; 1,465 g/t (43 oz/t) AgEq over 1.82 metres; and 2,545 g/t (75 oz/t) AgEq over 1.34 metres.

 
Table 1: Santa Ana Drill Intersections
 
Hole  From (m)  To (m)  Length (m)  Au (g/t)  Ag (g/t)  AgEq (g/t)
CP-1201  78.45  79.30  0.85  1.34  667  760
CP-1202  110.03  110.56  0.53  1.21  389  473
CP-1203  83.82  86.86  3.04  3.68  1,495  1,751
CP-1203  100.58  102.40  1.82  1.26  1,378  1,465
CP-1204  133.15  134.97  1.82  0.47  149  182
CP-1205  70.10  74.70  4.60  0.32  179  201
CP-1205  88.00  88.80  0.80  1.64  532  646
CP-1205  104.84  107.22  2.38  0.38  193  219
CP-1206  124.66  125.15  0.49  0.34  742  765
CP-1206  137.00  137.66  0.66  1.89  685  816
CP-1207  170.47  170.76  0.29  2.45  746  916
CP-1208  164.00  169.16  5.16  3.51  527  771
Including  164.00  165.34  1.34  10.17  1839  2545
             

Intersections were composited using a cut-off grade of 100 g/t AgEq, calculated as Ag (g/t) plus Au (g/t) times 69.44 (assuming a Au price of US $1,250 per ounce and a Ag price of US $18 per ounce). Intersected lengths do not represent true vein thicknesses which are generally less.

CB Gold plans to advance the Santa Ana Silver Project toward economic feasibility by the delineation of high-grade vein resources exploitable by modern underground mining methods. This work will initially involve compiling existing data, detailed underground mapping of existing mine workings, detailed underground channel sampling, and prioritizing targets for subsequent drifting and surface and underground diamond drilling.

Transaction

CB Gold has purchased 100% of the Santa Ana Silver Project from Condor for consideration of CA $250,000, 8,095,238 shares of CB Gold (CA $850,000 at $0.105 per share) and a 2% NSR royalty. CB Gold has a right of first refusal on any sale of the royalty and may purchase 1% (half the royalty) at any time for CA $500,000.

About the Santa Ana Silver Project

Santa Ana comprises 669 hectares of the historic Mariquita Silver District, one of Colombia's most prolific colonial silver mining camps with production dating back to the sixteenth century. The property is located approximately 190 kilometres ENE of Bogota in Tolima, Colombia.

A NI 43-101 Technical Report on the Santa Ana Property dated April, 2013, coauthored by Doublewood Consulting Inc. and Antediluvial Consulting Inc., cited the following archival information from historical Spanish documents regarding past production at Santa Ana:

"The La Porfia, El Dorado, La Manta and La Obdulia mines are located within the property as part of the historic colonial Santa Ana silver mines. The average smelter return for silver ore during those days was '4 marcos per quintal' (approximately 17 kg/t Ag) according to official reports of Hacienda Santa Fe (year 1585) also reporting widths exceeding 1 1/2 varas (4 1/2 feet). More veins were discovered in the Santa Ana (today Falan) and Frias region following exploration during the XVI Century, adding 14 new mines to the district, all of them producing over 1 marco of silver per quintal (approximately 4.3 kg/t Ag)."

The Santa Ana property is located on the eastern side of the Central Cordillera, underlain by highly deformed Paleozoic schists, quartzites and gneisses of the Cajamarca formation, intruded by the Tertiary El Hatillo granodiorite stock. The polymetallic silver-gold veins are characteristic of an intrusion related silver rich system later overprinted by a low sulphidation epithermal system in a thrust and fold setting. They are comprised of variable amounts of pyrite, sphalerite, galena, silver sulphosalts, native silver and gold in a gangue of quartz and adularia. The veins generally strike N-S to NNE and dip 45 to 85 degrees W to NW. They are directly related to right-lateral strike-slip movement on the regional scale Palestina Fault System.

Quality Assurance and Quality Control

Condor's quality control procedures during collection of drill core data included the insertion of commercial certified standards and blanks. Rock and drill core samples were sent to the ALS laboratories sample preparation laboratory in Bogota, Colombia, where they were dried, crushed, split and pulverized. The 250g pulps were then sent to Condor's head offices in Vancouver, British Columbia, Canada and subsequently delivered to the ALS Laboratory in North Vancouver for analysis. The samples were analyzed for gold using standard fire assay on a 50 gram sample with a gravimetric finish, and for multiple elements by ICP-MS using either an aqua regia (ME-MS41) or a four acid (ME-MS61) digestion. High silver results triggered ore grade Ag analysis using the AG-OG62 procedure.

The technical information contained in this news release has been reviewed and approved by Red Eagle Mining's Vice President of Exploration, Jeff Toohey P.Eng., who is a "Qualified Person" as defined under NI 43-101.

About CB Gold

CB Gold is a well-financed precious metals exploration and development corporation majority owned by near term producer Red Eagle Mining Corporation. CB Gold has an experienced exploration and mine development team focused on building shareholder value through acquiring and developing high grade gold and silver projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. CB Gold owns 100% of both the Vetas Gold Project and the Santa Ana Silver Project, which consist of numerous historic and existing mines and where exploration is currently underway to delineate high-grade vein resources exploitable by modern underground mining methods.

For further information, please contact Ian Slater, Chief Executive Officer or:

Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 - 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
balit@redeaglemining.com

Neither the 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. Information set forth in this news release includes forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the terms and completion of the proposed sale transaction are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: failure to satisfy all conditions precedent to the transaction, including disinterested shareholder approval and stock exchange regulatory approval, and the additional risks identified in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings with Canadian securities regulators. Forward looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Contact Information

  • Ian Slater
    Chief Executive Officer
    Patrick Balit
    Vice President Corporate Development
    Red Eagle Mining Corporation
    Suite 2348 - 666 Burrard Street
    Vancouver, BC, V6C 2X8
    +1 778 372 2558
    balit@redeaglemining.com