TORONTO, ONTARIO--(Marketwired - April 24, 2014) - Mammoth Resources Corp. (TSX VENTURE:MTH) is pleased to announce that it has confirmed the position of 14 drill holes to test the depth extent of numerous geophysical features and below attractive surface geology on its Tenoriba precious metal property located in the prolific Sierra Madre precious metal belt in south western Chihuahua state, Mexico (refer to the company's web site www.mammothresources.ca, for a detailed location map). The company has selected these targets based on a combination of the most attractive features currently observed on the property and where access to drill is available with minimal surface disturbance. These drill holes are designed to test geophysical features interpreted from the recent ground Induced Polarization and Magnetic geophysical survey performed over approximately one third of the large 15 square kilometre target area together, or in combination, with areas where elevated precious metal (gold and silver) values occur in altered and silicified surface rocks and structures.
Thomas Atkins, President and CEO of Mammoth Resources commented on these drill targets and the company's plans to drill, stating: "We've spent a lot of time reviewing the IP and magnetic geophysics target from our recent survey. These geophysical features, particularly evident in cross sections from this survey, often extend to depth below areas where surface rocks and structures have been mapped, sampled and shown to host elevated gold and silver values. Geophysics is never guaranteed to always identity mineralization at depth, however in targeting geophysical features at depth it seldom gets better than when you observe, as we do in a number of locations at Tenoriba, geophysical features occurring near surface with elevated precious metal values and have these same geophysical features extending from surface to depth. The company is excited about the prospect of drill testing these targets in the near future and is well advanced in its preparation to perform this drill program having received quotes from seven drill contractors and is well advanced in its permit application process. In 2008 the first ever drill program was performed on the property with great success. Results from 10 of 15 drill holes were reported, the highest grade was a 1.9 metre core length intersection grading 45.90 grams per tonne gold and one of the thickest was a 34.4 metre core length intersection grading 1.03 grams per tonne gold."
Discussion on Drill Hole Positioning and Program Preparation Work
The Induced Polarization and Magnetic geophysical surveys were performed over three grids which from the west to east include; Moreno, Masuparia and the Los Carneritos grid, each grid consisting of north-south oriented lines spaced at 100 metre intervals. A total of 32.2 linear kilometres were surveyed. This survey covers approximately 40 percent of the large 15 square kilometre area of elevated gold and silver values in attractively altered rocks on the property. The complete geophysics report, including all maps, plans and sections available in the appendices section following the written report, is available on the company's website, at: www.mammothresources.ca, Projects Section, Technical Reports.
Over the past two months the company has been working to correlate surface results from its detailed mapping and sampling program, which began on the property in late 2012 and continued throughout most of 2013, with results obtained from the late Induced Polarization and Magnetic geophysics survey completed in late 2013. The result of this work has been to identify a number of drill targets where the combination of geophysical features, surface geology and elevated gold and silver values, often all in combination, suggest attractive locations to drill test potential elevated gold and silver mineralization at depth. A total of 14 drill holes (six other drill locations have been identified, however to gain access to these drill sites would require additional work and so have not been considered at this stage), for an approximate total length of 2,500 metres have been identified. The maximum depth to be tested is approximately 250 vertical metres in a single hole with most other holes testing depths of between 75 and 150 vertical metres.
Three illustrative, geophysics drill target sections, including the trace of the proposed drill hole at this location and which occur in combination with elevated precious metal surface assay results, in one instance assaying as high as 13.10 grams per tonne (g/t) gold, are shown in figures 1 - 3 for the Moreno, Masuparia and Los Carneritos grids, respectively.
At the El Moreno Grid, Figure 1 - El Moreno Grid, Geophysics Section Line 58400E with Proposed Drill Trace, drill traces for holes M-01, 02 and 03 are illustrated. On this section surface sample lines and a single rock sample taken in close proximity to this drill location graded as follows:
- 4.00 g/t gold over 3.3 metres in samples 330377 - 79;
- 7.42 g/t gold over 5.2 metres in samples 330390 - 93;
- 2.43 g/t gold over 5.8 metres in samples 330369 - 73; and
- 13.10 g/t gold over 1.0 metre in sample 330372.
As a result of these surface grades and the geophysical feature extending from surface to depth, (areas of high resistivity shown in white below the surface), the company plans to drill at these locations to test these features at depth. Drill holes M-02, 03, possibly 03A and 06 are planned to further test targets within the El Moreno area as part of this drill program.
At the Masuparia Grid, Figure 2 - Masuparia Grid, Geophysics Section Line 59800E with Proposed Drill Trace, drill trace for hole MAS-02 is illustrated. On this section surface grab samples of vuggy silica material collected in close proximity to this drill location graded:
- 1.29 g/t gold in sample 330013;
- 6.17 g/t gold in sample 330014; and
- 0.37 g/t gold and 235.0 g/t silver in sample 330015.
As a result of these surface grades and the geophysical feature both near the surface and at depth (areas of high resistivity shown in yellow and white below the surface), the company plans to drill at this location in order to test these features at depth. Drill holes MAS-01, 02, 05, and 06 are planned to further test targets within the Masuparia area as part of this drill program.
At the Carneritos Grid, Figure 3 - Carneritos Grid, Geophysics Section Line 61200E with Proposed Drill Trace, drill trace for hole CAR-07 is illustrated. On this section nine surface samples collected over the highly resistive feature at the summit of the hill at this location assayed an average of 1.60 g/t gold. Drill holes CAR-04, 05, 06, 07, 08 and 09 are planned to further test targets within the Carneritos area as part of this drill program.
Richard Simpson, the company's Vice President Exploration was recently on site facilitating a number of activities in anticipation of this drill program, including: ensuring surface access to drill platform locations, facilitating drill contractor visits for the purposes of quoting on this drill program, and a visit by the contractor assisting in the preparation of the company's drill permit application.
Quotes have been received from seven drill contractors on 11 different drill rig (reverse circulation or core) services with all-in estimated costs (drilling, sample analysis, travel, accommodations and labour) as low as US $320,000 with four of the 11 drill rig service quotes offered at less than US$360,000, including one drill contractor that was willing to accept 60 percent of its costs in Mammoth shares.
The company has initiated the permit process for its planned drill program at its Tenoriba property, including locating these drill platforms and access roads, performing a flora/vegetation survey, performed in early April with the results of this survey being compiled by the company's environmental and permitting consultant.
Surface rights to the project area are governed by two ejidos (an ejido is a communal municipal governance committee which has stewardship over surface land usage), the Santa Rosa and the Baborigame ejidos. On April 13, 2014 the general assembly for the Santa Rosa ejido signed an agreement permitting minor surface disturbance required to perform the company's drill program. A similar agreement with the Baborigame ejido is pending their next general assembly meeting scheduled to be held in early May 2014. Upon signing the Baborigame ejido agreement the permit application will be completed and filed at the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT) offices in Chihuahua City. SEMARNAT surface disturbance permit for drilling is expected to be issued no later than 20 working days after filing the application at which time the company would be in a position to begin its proposed drill program.
Qualified Person / Quality Controls
Richard Simpson, P.Geo., Vice-President Exploration for Mammoth Resources Corp. is Mammoth's Qualified Person, according to National Instrument 43-101, for the Tenoriba property and is responsible for and has reviewed any technical data mentioned in this news release.
The company would also like to announce that it has issued to certain directors and officers of the company 287,233 stock options to purchase shares in the company exercisable at a price of $0.05 per share for a period of five years, pursuant to the rules of the company's stock option plan.
About Mammoth Resources:
Mammoth Resources (TSX VENTURE:MTH) is a mineral exploration company focused on acquiring and defining precious metal resources in Mexico and other attractive mining friendly jurisdictions in the Americas. The Company has an option to acquire 100% in the Tenoriba Property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico. The company continues to seek other option agreements in the Americas on other properties it deems to host above average potential for economic concentrations of precious metals mineralization.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the company's website at www.mammothresources.ca.
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.
Forward Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
To view Figure 1 - El Moreno Grid, Geophysics Section Line 58400E with Proposed Drill Trace, click the following link: http://media3.marketwire.com/docs/941481_1.jpg
To view Figure 2 - Masuparia Grid, Geophysics Section Line 59800E with Proposed Drill Trace, click the following link: http://media3.marketwire.com/docs/941481_2.jpg
To view Figure 3 - Carneritos Grid, Geophysics Section Line 61200E with Proposed Drill Trace, click the following link: http://media3.marketwire.com/docs/941481_3.jpg