Rio Grande Mining Corp.
TSX VENTURE : RGV

February 23, 2012 08:00 ET

Rio Grande Resamples High Grade Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2012) - Rio Grande Mining Corp. (TSX VENTURE:RGV) ("Rio Grande" or the "Company") is pleased to release assay results from its November, 2011 field program at the La Maria Property designed to resample previously reported high grade channel and grab samples of up to 649.5 grams/tonne (g/t) Au including 598.6 g/t and 197.6 g/t Au encountered in previous campaigns and reported in the National Instrument 43-101 "Technical Report on the La Maria Property, Municipalities of Remedios and Vegachi, Department of Antioquia, Colombia" dated September 12, 2011 (the "Technical Report") and filed on SEDAR under the Company's profile on September 29, 2011.

Mr. James A. McCrea., P.Geo., a Qualified Person as defined by National Instrument 43-101, supervised the November, 2011 field program and has reviewed this news release and approves all scientific and technical disclosure. The November, 2011 field work received similar and reproducible high grade gold assay results with the highest grade values being slightly lower from the re-sampled assay results including 474.4 g/t gold over 0.3 metre in the vein footwall, 137.8 g/t gold over 0.6 metres, 75.2 g/t gold over 0.8 metres and 51.6 g/t over 0.3 metres all from the La Clavada decline. These samples represent two campaigns of sampling in the normally flooded La Clavada decline. The resample indicates that the zones can reproduce similar high grade values and widths as reported from previous campaigns.

Vein chip samples 15016 to 15018 and 15020 were collected 6.4 metres vertically below surface. Vein chip samples 15024 to 15026 and 15028 to 15030 were collected 16.4 metres vertically below surface.

Sample Highlights

Sample
Number
Material Sampled Length
(m)
Au (g/t)
Original
Ag (g/t)
Original
Length
(m)
Au (g/t)
Repeat
Ag (g/t)
Repeat
15016 Quartz vein, FW 0.5 0.074 <2 0.3 474.40 130.0
15017 Quartz vein 0.3 649.50 152 0.4 1.950 0.5
15018 Quartz vein, HW 0.4 2.958 <2 0.6 0.806 <0.3
15020 Composite of 15 & 16 0.7 598.60 159 - - -
15024 Quartz vein, FW 0.5 0.449 <2 0.5 1.065 0.4
15025 Quartz vein 0.63 197.60 34 0.6 137.80 33.1
15026 Quartz vein 0.9 84.80 26 0.8 75.20 26.8
15028 Gneiss, FW 0.8 0.114 <2 0.8 0.121 <0.3
15029 Quartz vein 0.36 43.20 11 0.3 51.60 12.9
15030 Gneiss, HW 0.8 0.178 <2 0.9 0.009 <0.3

James A. McCrea, P.Geo, the Qualified Person who supervised the November, 2011 field work verified the data disclosed in the above table by taking verification samples of the La Clavada vein during a 2010 reconnaissance of the Property. The grades reported in the table are of a similar tenor to those of the reconnaissance sampling.

Work Program

The Company is pleased to announce that the work program has started on the La Maria Property with the installation of survey control points for the geophysical grid and a local topographic survey of the La Clavada area prior to the geologic mapping and trenching program. The mapping program is to include all accessible underground workings. It is anticipated that the existing camp on the property will be upgraded and offices/offsite living accommodations will be located in a nearby community with internet and cell phone coverage. Work is anticipated to start shortly on the geophysical program to aid the trenching and mapping. Management expects that access improvements will be completed along with the mechanized trenching and drill pad construction and anticipates 1,000 metres of diamond drilling to follow.

Transaction with Tru Vision Corp.

Upon completion of the share exchange transaction with Tru Vision (see news releases dated February 9, 2011, May 19, 2011, June 2, 2011, September 29, 2011, November 16, 2011 and February 21, 2012), it is anticipated that Mr. Christopher Verrico will become the President, Chief Executive Officer and a director of the Company. Mr. Verrico has 25 years of mine development/operations experience within B.C., Alaska and the Canadian Territories managing and contracting open pit mining, bulk ore handling and northern infrastructure construction operations. In the past 10 years, Mr. Verrico has been focussed on scoping resource development opportunities throughout the Americas with key participation in raising more than $100 million of venture capital, and is a director of a number of Canadian junior public companies. Mr. Verrico is currently the President and sole director of Tru Vision.

On behalf of the Board of Directors,

Jerry Minni, President & CEO

Rio Grande Mining Corp.

Statements in this press release regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations and include statements that: (i) the Company may close the share exchange transaction with Tru Vision Corp., (ii) the Company anticipates commencing the work program on the La Maria Property shortly and that the work to be conducted will be as disclosed in this news release, (iii) the resample indicates that the re-sampled zones can reproduce similar high grade values and widths as reported from previous campaigns, (iv) that the existing camp on the La Maria Property will be upgraded and offices/offsite living accommodations will be located in a nearby community with internet and cell phone coverage, (v) that work is anticipated to start shortly on the geophysical program to aid the trenching and mapping, (vi) that Management expects access improvements will be completed along with the mechanized trenching and drill pad construction and anticipates 1,000 metres of diamond drilling to follow, and (vii) that Mr. Christopher Verrico will become the President, Chief Executive Officer and a director of the Company.

Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties such as the risk that the work program will not be completed as stated or at all and the timing thereof, the risk that the share exchange transaction with Tru Vision Corp. may not close for any reason whatsoever, the risk that resample zones will not reproduce similar high grade values and widths as reported from previous campaigns, the risk that the existing camp on the La Maria Property will not be upgraded as stated or at all, the risk that work on the geophysical program to aid the trenching and mapping will not commence shortly, the risk that access improvements will not be completed along with mechanized trenching or at all, the risk that drill pad construction and 1,000 metres of diamond drilling will not occur, and the risk that Mr. Verrico may not become the President, Chief Executive Officer or a director of the Company upon completion of the transaction with Tru Vision Corp. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) the inability of the parties to complete the share exchange transaction, as proposed or at all; (ii) inability of the Company to complete the work program, camp upgrades, geophysical work, access improvements and/or drill pad construction in part or at all and the in ability of the Company to complete these items within the estimated timeframe; (iii) a change in market conditions; and (iv) the refusal of the TSX Venture Exchange to accept the proposed transaction with Tru Vision Corp. for any reason whatsoever. Except as required by law, the Company does not intend to update any changes to such statements.

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.

Contact Information

  • Rio Grande Mining Corp.
    Jerry Minni
    President & CEO
    (604) 683-8610
    (604) 683-8605 (FAX)