Samco Gold Limited
TSX VENTURE : SGA

Samco Gold Limited

December 14, 2011 09:25 ET

El Dorado Monserrat Project New Discovery, Bonanza Silver Grades

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2011) - 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

- Seventeen Holes completed for 2,742 metres, predominantly on the Main Veins target of the Monserrat Sector
- Recently received intersections include 1.6m of 14.2 g/t Au, 2,607 g/t Ag from 84.4m, including 0.60m with 31.27 g/t Au and 6,006 g/t Ag, and 0.6m of 2.7 g/t Au, 25 g/t Ag from 104m (MVDDH006) from the Inés zone of the Monserrat Main Veins, 215m north of MVDDH004, announced previously
- MVDDH004, 006 and 007 suggest a zone of Au-Ag mineralization at least 300m long, with local bonanza silver grades in addition to gold
- Pole-Dipole IP concluded over Monserrat and El Dorado Sectors - work progressing on Judite Sector
- IP defined "Seraphina" vein, 200m West of the Main Veins has been confirmed as mineralized from a combination of float (9.8 g/t Au, 1,484 g/t Ag), trench (5.8 g/t Au, 1,186 g/t Ag) and drill (1.7m of 4.4 g/t Au, 201 g/t Ag from 31.5m in hole PC2) samples
- Drilling commenced on Beethoven target in El Dorado Sector following up identified IP anomalies

Work completed

Since commencing exploration in the El Dorado Monserrat property in September 2011, seventeen cored holes have been completed in the project, for a total of 2,742m. A second rig commenced drilling in late October, and has completed five holes. Sixteen of the completed holes were drilled in the Monserrat Sector, and one hole has been drilled in the Beethoven vein system in the El Dorado Sector.

Additional work includes 67 line km of pole-dipole induced polarization surveys in the Monserrat (Main Veins, Monserrat West) and El Dorado (La Herradura and Beethoven) Sectors, as well as ongoing rock chip and float sampling in all areas.

Drilling results received

In addition to assays from the first four holes released on October 27, Samco has now received assays for the nine holes shown in Table 1, all from the Monserrat Sector.

Table 1. Drill-hole intersections, Monserrat Sector, December 10, 2011
Intersections >2 g/t Au
Hole East North Angle Azimuth Depth (m) Width (m) g/t Au g/t Ag From (m)
MVDDH005 2529382 4638988 -50 99 234.3 1 3.6 10 124.00
MVDDH006 2529242 4638166 -50 279 136 1.6 14.2 2607 84.40
(Including 0.6 31.3 6006 84.4 )
0.6 2.7 25 104.00
MVDDH007 2529180 4637896 -50 279 122.5 1 14.6 113 67.00
MVDDH008 2529170 4637693 -50 279 216 No intersection > 2 g/t Au
MVDDH009 2529096 4637744 -50 99 241.7 No intersection > 2 g/t Au
MVDDH010 2528819 4638170 -50 219 100.15 No intersection > 2 g/t Au
MVDDH011 2529097 4637651 -50 309 167 0.5 3.6 41 72.10
0.9 15.6 84 76.60
PC1 2529178 4638757 -50 274 50 No intersection > 2 g/t Au
PC2 2529238 4638715 -50 309 50 1.7 4.4 201 31.50

To view, "Figure 1. Overview of Key Targets and permits- El Dorado Monserrat Project," please visit the following link: http://media3.marketwire.com/docs/SGAfig1c.pdf

To view, "Figure 2. Image showing holes completed and in progress, Main Veins Target, Monserrat Sector," please visit the following link: http://media3.marketwire.com/docs/SGAfig2c.pdf

Comments on results

Inés zone

  • MVDDH006 (1.6m of 14.2 g/t au, 2,607 g/t Ag from 84.4m and 0.6m of 2.7 g/t Au, 25 g/t Ag from 104m) was drilled into the Inés zone of the Monserrat main structure, 215m north of MVDDH004, announced previously. The hole was collared west of MVDDH003, which terminated short of the vein. Rock chips from the outcrop in this area assayed 5.6 g/t Au, 11 g/t Ag and 6.2 g/t Au, 83 g/t Ag.
  • MVDDH007 (1m of 14.6 g/t Au, 113 g/t Ag from 104m) was drilled 60m south of MVDDH004.

MVDDH004, 006 and 007 suggest a zone of Au-Ag mineralization at least 300m long, with local bonanza silver grades in addition to gold. Infill drilling to define the continuity and extent of this mineralization along strike and in depth has commenced.

Seraphina vein

PC2 is a shallow (50m) hole drilled in a new prospect, now called Seraphina, where anomalous float which assayed up to 9.8 g/t Au, 1,484 g/t Ag coincides with an IP anomaly, approximately 200m west of the Monserrat main vein. This structure was exposed in a trench and assayed 5.8 g/t Au, 1,186 g/t Ag. Hole PC2 intersected the vein with 1.7m of 4.4 g/t Au, 201 g/t Ag from 31.5m. Further drilling will define the extent of this mineralization.

Virginia zone

MVDDH011 (0.5m of 3.6 g/t Au, 41 g/t Ag from 72.1m and 0.9m of 15.6 g/t Au, 84 g/t Ag from 76.6m) was drilled in the Virginia zone. The intersection is open-ended.

Low grade mineralization

Some holes intersected zones of low-grade mineralization peripheral to the main veins. The best example is MVDDH006, with 12.35m of 2.35 g/t Au, 375 g/t Ag from 76.65m, including the first of the two higher grade intersections shown in Table 1, or 34.75m of 1.2 g/t Au, 138 g/t Ag from 76.65m for the whole mineralized interval including both intersections.

Beethoven-Herradura

Pole-dipole IP now covers the Beethoven-Herradura area of mineralization, some 7 km south-east of the Monserrat Main Vein system. Beethoven is an East-West to WNW-trending vein system and Herradura is an area of alteration and narrow but locally high grade WNW-trending quartz veining, 500m West of Beethoven. Drilling by previous explorers comprises only seven holes at Beethoven and five at La Herradura.

The current geophysical survey has identified non-outcropping resistivity and chargeability anomalies at Herradura, which appear to plunge eastward below the Beethoven vein system, in an area which was not tested by any previous hole.

One of the two drill rigs currently working on the project has now moved to Beethoven. The first hole of a twelve-hole program in that area, SGBE01, has been completed at 244m, and the second hole, SGBE02, is in progress (Figure 3). The program is scheduled for completion in the first quarter of 2012.

To view, "Figure 3. Image showing holes completed and in progress, La Herradura and Beethoven targets, El Dorado Zone," please visit the following link: http://media3.marketwire.com/docs/SGAfig3c.pdf

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

"We are very encouraged by these early results from our EDM exploration program. Both the geophysics and the drilling are yielding interesting targets for further follow up on both the Monserrat and El Dorado Sectors.

In addition to the extensive program we are executing on El Dorado Monserrat, we expect next quarter to commence preliminary fieldwork on our 5,000 hectare Corina project, which lies on the northern boundary of Extorre's Cerro Moro property, where satellite imagery interpretation has delineated a number of targets for near term evaluation."

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.

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, approximately 10 kilometres due West of the Cerro Vanguardia Mine operated by AngloGold Ashanti Limited. 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.

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