Samco Gold Limited
TSX VENTURE : SGA

Samco Gold Limited

February 28, 2012 08:36 ET

El Dorado Monserrat Project Exploration Update

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2012) - Samco Gold Limited (TSX VENTURE:SGA) ("Samco Gold" or the "Company") is pleased to announce further developments at its principal El Dorado Monserrat (EDM) project:

Highlights

  • 41 diamond drill holes complete for approx. 7,000 metres, mostly on the Main Veins target of the Monserrat Zone. Three diamond rigs operating; a fourth is anticipated on property in March.

  • Main Veins Structures (Ines/Virginia) returning values from two parallel structures with a mineralized strike of at least 400m.

    • Intersections include (MVDDH018) 1.15m of 23.8 g/t Au, 714 g/t Ag from 52m and 1.9m of 0.7 g/t Au, 129 g/t Ag from 58.1m.

  • A wide zone of anomalous Au and Ag values has been intersected below MVDDH004 (announced October 27, 2011) in hole MVDDH0017 between 230 and 254m, including 0.4m of 2.1 g/t Au, 205 g/t Ag from 242.6m and 0.5m of 0.2 g/t Au, 131 g/t Ag from 251.5m.

  • Surface rock chip sampling of the northern extension of the Camila section has defined mineralization for a distance of approx. 750m north of MVDDH005. Samples include 22.6 g/t Au, 1,042 g/t Ag.

  • Strike extension of Seraphina (or an equivalent) structure in Bajo Pedernales area of the Monserrat Zone has been confirmed for over 800m to the south of the original (PC002) hole.

    • Intersections to date include (MVDDH023) 1.6m of 7.4 g/t Au, 83 g/t Ag from 162.4m.

  • Drilling into an IP defined target on the Monserrat West structure intersected 0.5m of 3.8 g/t Au, 1,377 g/t Ag from 179.5m (MVDDH012).

To view the map associated with Figure 1, El Dorado Monserrat Project, location of principal targets, please visit the following link: http://media3.marketwire.com/docs/SamcoGoldFigure1.pdf.

Exploration Drilling

Assays have now been received for fourteen new diamond drill holes in addition to holes announced previously: twelve in the Monserrat Zone and two in the El Dorado Zone. Appendix 1 summarises results for all holes and lists intersections above 2 g/t Au and/or 120 g/t Ag. Figure 2 shows the locations of all the holes drilled by Samco Gold in the Monserrat prospect, with those included in the current announcement highlighted.

To view the map associated with Figure 2, Monserrat prospect, showing holes drilled by Samco Gold. (Holes in the current program highlighted) please visit the following link: http://media3.marketwire.com/docs/SamcoFigure2.pdf.

MONSERRAT ZONE

Main Veins structure (Ines/Virginia)

MVDDH017, 018, 019, 020 and 021 intersected the main NNE-trending Monserrat structure, complementing results announced on December 14, 2011.

  • MVDDH018 intersected two zones of mineralization at 52-60m and 118.9-134.5m. The first zone includes 1.15m of 23.8 g/t Au, 714 g/t Ag from 52m and 1.9m of 0.7 g/t Au, 129 g/t Ag from 58.1m. The second zone includes narrow zones of lower grade mineralization. The hole is 40m north of previously-announced MVDDH004.

  • MVDDH020, 55m north of MVDDH018, also intersected two mineralized intervals: 1m of 7.5 g/t Au, 76 g/t Ag from 47m and 1m of 5.5 g/t Au, 18 g/t Ag from 99m.

  • MVDDH021 was drilled 200m north of MVDDH020, and again intersected two zones: 0.6m of 869 g/t Ag with low Au from 49.5m, and the second zone between 93 and 100m which contained 2.8m of 4.8 g/t Au, 29 g/t Ag from 93m and 0.6m of 15.4 g/t Au, 87 g/t Ag from 99.3m.

  • MVDDH019 was drilled 130m south of MVDDH018. It intersected 1m of 711 g/t Ag from 135m, with low Au.

  • MVDDH017 was planned to test the structure below MVDDH004. It intersected a zone of anomalous Au and Ag values between 230 and 254m, including 0.4m of 2.1 g/t Au, 205 g/t Ag from 242.6m and 0.5m of 0.2 g/t Au, 131 g/t Ag from 251.5m.

Together with previous holes MVDDH004, 006 and 007, the new holes define a mineralized interval over a strike length of at least 400m.

In the December 14, 2011 announcement, two intersections were reported for MVDDH011: 0.5m of 3.6 g/t Au, 41 g/t Ag from 72.1m and 0.9m 0f 14.0 g/t Au, 84 g/t Ag from 76.6m. The correct silver assay for the second intersection is 1,304 g/t. Including internal waste, the interval 72.1-77.5m averages 3.2 g/t Au, 227 g/t Ag over 5.4m. Historic surface assays in this sector support a 650m zone to the south of MVDDH011 with consistent gold values of several g/t and Ag values reported at the upper detection limit of 100 ppm. Samco Gold has so far drilled only one hole, MVDDH036, in this area, with results pending.

Camila structure

MVDDH014 was drilled at the southern end of an easterly offset to the main structure, known as the Camila structure. It intersected 0.7m of 9.7 g/t Au, 40 g/t Ag from 8.5m.

Surface rock chip sampling has been carried out on the northern continuation of this structure, for a distance of about 750m north of the most northerly hole drilled by Samco (MVDDH005). Many samples returned anomalous values, including 22.6 g/t Au, 1,042 g/t Ag.

Several holes have been drilled in this area by a previous explorer, and include a reported intersection of 30.25 g/t Au over 2.27m in a hole numbered DDH ED-15.

Bajo Pedernales

MVDDH013, 015 and 023 tested a low-lying area to the west of the main Monserrat structure, known as the Bajo Pedernales.

  • MVDDH013 intersected 0.3m of 6.4 g/t Au, 513 g/t Ag from 23.8m. The hole is 95m south of PC002, which intersected the newly-discovered Seraphina vein (see December 14, 2011 announcement).

  • MVDDH015 is 270m south of MVDDH013, and intersected 0.5m of 3.1 g/t Au, 59 g/t Ag from 71m.

  • MVDDH023, 475m south of MVDDH015, intersected 0.4m of 0.56 g/t Au, 403 g/t Ag from 97.7m followed (more significantly) by 1.6m of 7.4 g/t Au, 83 g/t Ag from 162.4m.

The relatively isolated intersections in the Bajo Pedernales require additional drilling to define their extent and continuity. It is tentatively assumed that they represent extensions of the Seraphina vein, subject to infill drilling.

Monserrat West

The single hole drilled to date by Samco Gold at Monserrat West is MVDDH012. It intersected 0.5m of 3.8 g/t Au, 1,377 g/t Ag (or 27 g/t Au equivalent, using a 60:1 Ag:Au equivalence factor) from 179.5m, plus the two lower grade intersections shown in Appendix 1.

EL DORADO ZONE

Assays have been received for the two holes drilled to date in the Beethoven vein system, in the El Dorado sector of the property (refer to figure 1). Neither hole intersected significant Au or Ag values. Geophysical modeling of the vein system is being undertaken to guide future drilling.

EXPLORATION PROGRAM

The immediate focus of exploration will be to define the extent of mineralization in the main Monserrat structure, and its northern (Camila) offset. Potentially, the overall structure has a strike length of 3 km, before being covered by basalt to the north. Holes drilled by Samco Gold to date cover about 1.2 km of strike length. An immediate program of approximately 3,500m is proposed, to define the continuity of the mineralized zone intersected by MVDDH019 to MVDDH021, and previously announced holes in that sector.

Holes MVDDH012, MVDDH13 and MVDDH023, drilled to the west of the main structure, illustrate the potential of this area to contain additional veins, including blind structures in the low-lying Bajo Pedernales area. Drilling on a wider-spaced pattern is planned to explore these targets.

Separate programs for veins in the El Dorado sector will be developed in conjunction with geological and geophysical data.

Geophysical surveys are continuing onto the basalt to the north of the Monserrat Main Veins. Initial signs are that pole-dipole IP is working effectively through the basalt. Further IP is planned for a number of high priority targets on the Judite Zone.

CORINA

Having finalized an access agreement with the owner of the surface rights of the Company's 5,000 Ha Corina project, preliminary fieldwork is expected to commence before the end of the first quarter of 2012.

Commenting on the recent results Paul Richardson, Chief Executive of Samco Gold said:

"As the drilling program on El Dorado Monserrat accelerates, we are pleased with the results we have received to date and look forward to continuing the exploration of the Main Veins system to greater depths and along strike, which may continue further to the North below the basalt. Once we have the benefit of the interpreted geophysics on the El Dorado and Judite sectors, we expect to broaden the drill program onto these other, exciting, targets."

The exploration program is directed by Samco Gold's Senior Geologist, Lic. Eduardo Falloni advised by Mr David Shatwell who is a Fellow of the Australian Institute of Geoscientists. Sr. Falloni has over 30 years' experience of exploration geology throughout Argentina including significant experience within the Deseado Massif. Mr. Shatwell is a Qualified Person within the meaning of Canadian National Instrument 43-101 and has reviewed and approved the above technical disclosure.

The above Au and Ag assays were performed on half-core by Alex Stewart Argentina S.A., using fire assay with atomic absorption finish on 50 gram pulp samples. Drill-hole locations are in Gauss-Kruger coordinates, using the Campo Inchauspe datum, and were acquired by hand-held GPS with an estimated accuracy of approximately 5m. Intersections quoted in this release are down-hole widths, and are greater than true widths depending on vein and drill-hole geometries.

About Samco Gold Limited

Samco Gold's principal business is the acquisition, exploration and development of precious metals resource properties in Argentina. The Company's principal mineral property is the El Dorado Monserrat epithermal gold project, located in the Deseado Massif region of Santa Cruz Province, Argentina. The Company's goal is to become a producer of gold through the exploration and development of El Dorado Monserrat. Samco Gold also owns a portfolio of other mineral exploration properties in the Deseado Massif.

Additional details on the Company are available on SEDAR (www.sedar.com).

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements which can be identified by the use of words "commenced", "scheduled", "expect", "goal", and phrases or statements that certain actions, events or results "may", "would", or "will" be taken, occur or be achieved. Information concerning the interpretation of drill and other exploration results may also be considered forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the results of due diligence activities, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in Samco Gold's Prospectus dated June 27, 2011 filed and publicly available under the Company's profile on the SEDAR website at www.sedar.com. Although Samco Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws.

To view the table associated with this press release, please visit the following link: http://media3.marketwire.com/docs/SamcoAppendix1.pdf.

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.

Contact Information

  • Samco Gold Limited
    Paul Richardson
    Chief Executive Officer
    +44 20 7740 5791
    pr@samcogold.com