Ginguro Exploration Inc.
TSX VENTURE : GEG

Ginguro Exploration Inc.

July 05, 2011 12:12 ET

Ginguro Commences Drilling at El Alto, Chile

SUDBURY, ONTARIO--(Marketwire - July 5, 2011) - Ginguro Exploration Inc. (TSX VENTURE:GEG) is pleased to announce that diamond drilling is underway at El Alto, its 100% owned Iron-Oxide-Copper-Gold ("IOCG") property in Chile.

IOCG deposits are globally important and highly valuable concentrations of copper, gold and iron ores hosted within iron oxide dominant mineral assemblages that form during unique geologic processes.

These ore bodies range from around 10 million tonnes to 4 billion tonnes or more and typically have a grade of between 0.2% to 5% copper, with gold contents ranging from 0.1 grams to over 3 grams per tonne. IOCG ore bodies commonly form as breccia bodies along the flanks of intrusive bodies. El Alto appears to closely represent this style of mineralization.

In general, the tremendous size and relatively high grade of IOCG deposits can produce extremely profitable ore bodies. In addition to copper-gold-iron mineralization, IOCG deposits are also often associated with other valuable minerals such as uranium, bismuth and rare earth metals. Prominent examples of IOCG deposits include the Olympic Dam mine complex in South Australia and the La Candelaria deposit in Chile. There is no certainty that that a deposit such as Olympic Dam or La Candelaria will be discovered or developed on the Company's property.

El Alto represents an untested IOCG target with the appropriate size characteristics. In addition, El Alto displays mineral assemblages consistent with IOCG deposits.

Ginguro's first phase drilling program will consist of at least ten holes totaling 3,500 m. Drilling operations began today and are anticipated to continue over the next several months.

As previously reported, a geophysical survey completed on the El Alto Property in 2010 identified five distinct magnetic anomalies ranging in length from 1.3 km to 2.4 km and in widths from 50 m to 800 m.

The South-West anomaly is coincident with a radiometric anomaly and corresponds to an area of artisanal mining, including numerous adits, shafts, and pits. This South-West anomaly is 2.3 km in length, trending north-south, and ranging from 50 m to 350 m in width. Adits in the vicinity show similar iron oxide, with significant copper and gold values in fresh rock. Chip sample assays of this mineralization are summarized in the table below.

Sample highlights from El Alto Chip Samples
Type Length Cu
%
Au
g/T
Ag
g/T
Fe
%
Chip 0.6m 2.6 1.2 12.5 19.8
Chip 2.0m 1.3 1.7 30.7 28.2
Chip 2.0m 1.9 2.6 36.9 30.9
Chip 2.0m 1.1 1.4 23.0 26.5
Chip 2.0m 2.1 1.2 21.2 31.6
Chip 2.0m 2.5 1.6 13.6 25.8
See Company press release, dated Oct 22, 2009.

The North-West anomaly is approximately 2.4 km long and ranges from 230 m to 700 m wide. The Company has confirmed that this area is underlain by massive iron oxide mineralization, with conspicuous cavities where it is believed sulphide minerals have been weathered out. It is believed that the Northwest Anomaly corresponds to a style of mineralization similar to that exposed at the Southwest Anomaly

Expenditures at El Alto are entirely funded by privately held Canadian Continental Exploration Corp., who can earn a 70% interest in the Company's El Alto property by funding $5 million of exploration expenditures over a four year period. Upon Canadian Continental completing all of its obligations and exercising its option, Ginguro's 100% interest in El Alto will be reduced to 30%.

About Ginguro

Ginguro Exploration Inc. is a mineral exploration company focused on the advancement of its paleo-placer gold property, located in Pardo Township in northern Ontario and of its El Alto IOCG property located north-west of Santiago, Chile. To learn more about Ginguro Exploration Inc., please visit: www.ginguro.com.

The Qualified Person responsible for the geological technical content of this news release is Richard Murphy, President and CEO of Ginguro Exploration Inc.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.

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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