Samco Gold Limited
TSX VENTURE : SGA

Samco Gold Limited

May 28, 2013 07:00 ET

Samco Gold Announces Encouraging Results from Preliminary Drilling on Its Corina Project

TORONTO, ONTARIO--(Marketwired - May 28, 2013) - Samco Gold Limited (TSX VENTURE:SGA) ("Samco Gold" or the "Company") is pleased to announce encouraging results from the preliminary drill campaign on the Cerro Cubilete target at its Corina Project in Santa Cruz province, Argentina.

HIGHLIGHTS

  • A ten hole, fully cored program for 2,148m was drilled on the Cerro Cubilete target between January 10 and 28 to follow up on the broad zone of high grade surface mineralization announced previously.

  • Nine holes were drilled on four sections oriented at 295º, and angled at -55º. The distance between the northernmost and southernmost sections is 270m. The tenth hole was drilled on an azimuth of 238º, and angled at -50º, to investigate possible hangingwall mineralization.

  • Drilling on four fences has defined an east-dipping and probably south-plunging mineralized body over a strike length of at least 270m and width up to 70m, open at depth and in all directions.

  • Of the nine parallel holes, eight intersected what appears to be a broad NNE striking silver-lead-zinc mineralized body (hereinafter the "Cubilete Structure") The Cubilete Structure dips 30-45º E and occurs in the footwall of a fault with similar orientation It is hosted by oxidized and brecciated volcanics which are also inferred to dip to the east. Flow-banded rhyolite at depth suggests the body may be located on the east flank of a buried rhyolite flow-dome.

  • One deeper hole (CCDDH08) intersected what appears to be a second mineralized body to the West of the Cubilete Structure. Low grade gold and (up to 1%) copper values were recorded in certain, deeper, intersections.

  • Notable intersections include:

    • In the North of the Structure, (CCDDH008) 32 metres averaging 75ppm Ag; 3.02% Pb and 0.66% Zn from 26 metres including, from 54 metres, 2 metres averaging 178ppm Ag; 2.56% Pb and 0.67% Zn;

    • Approximately 40m south of CCDDH08 and CCDDH09, CCDDH004 intersected 2 metres averaging 354ppm Ag, 1.88% Pb and 1.22% Zn from 33 metres and a second intersection of 42.5 metres (from 55 metres) averaging 46ppm Ag, 1.98% Pb and 0.83% Zn;

    • In the South of the Structure, (CCDDH007) 10 metres (from 67 metres) averaging 0.29ppm Au; 57ppm Ag, with trace Pb and Zn;

    • and

    • 8 metres (from 84 metres) averaging 0.13ppm Au, 168ppm Ag with trace Pb and Zn;

    • and

    • 2 metres (from 97 metres) averaging 0.29ppm Au, 187 ppm Ag and 0.09% Pb and 0.13% Zn

  • Deeper zones of narrow and/or low grade Pb-Zn mineralization occur in CCDDH06, CCDDH08 and CCDDH10 (Table 2) separately from the main body at Cerro Cubilete. These intersections and the pattern of surface geophysical and geochemical anomalies suggest possible widespread mineralization which will become the target for future drilling.

  • At Cerro Cubilete, silver and base metals are associated with strongly anomalous Fe, Mn, Ba, As, and Mo in both outcrop and drill-core, suggesting an intermediate sulfidation style of mineralization. Anomalous values of these elements also occur in outcrop at Cerro de la Mina, 1 km to the west, within a large ground magnetic low which trends NW and also passes through Cerro Cubilete.

  • A gradient array IP program is underway to test Cerro de la Mina as well as the southerly extensions of the Cubilete Structure and further to refine potential targets identified from the magnetic survey carried out in 2012.

CERRO CUBILETE

Samco Gold has completed a ten-hole, fully cored drill program at its Corina project in Santa Cruz province, Argentina (Figure 1). The program was carried out at the Cerro Cubilete silver prospect, where Samco has previously announced a NNE-trending, 300 x 75m zone of high to bonanza silver grades in rock chip samples.

To view 'Figure 1. Corina prospect location', please visit the following link: http://media3.marketwire.com/docs/samcfig1.pdf

The drill program, which totals 2,148m, was carried out between January 10 and 28, 2013. Nine holes were drilled on four sections oriented at 295º, and angled at -55º. The distance between the northernmost and southernmost sections is 270m. The tenth hole was drilled on an azimuth of 238º, and angled at -50º, to investigate possible hangingwall mineralization. Final-surveyed collar coordinates and other data are shown in Table 1, and the collar positions are shown on Figure 2.

Table 1. Cerro Cubilete drill-holes, collar data

Hole Gauss Kruger E Gauss Kruger N Elevation (m) Azimuth Angle Depth (m)
CCDDH01 2685874.17 4684393.98 79.70 295 -55 150.00
CCDDH02 2685868.24 4684309.76 90.40 295 -55 161.00
CCDDH03 2685841.47 4684188.08 91.70 295 -55 152.00
CCDDH04 2685905.15 4684381.01 84.70 295 -55 203.15
CCDDH05 2685906.32 4684380.43 84.70 295 -75 161.15
CCDDH06 2685914.76 4684292.86 105.70 295 -55 224.00
CCDDH07 2685885.38 4684156.63 98.10 295 -55 290.00
CCDDH08 2685876.42 4684440.08 75.00 295 -55 250.00
CCDDH09 2685925.59 4684415.67 74.80 295 -55 302.00
CCDDH10 2685833.07 4684492.21 74.70 238 -50 250.00

To view 'Figure 2. Cerro Cubilete, drill-hole and drill section location plan. Selected fault traces are shown in blue, outcropping mineralization in red. Topographic contours are in meters.', please visit the following link: http://media3.marketwire.com/docs/samcfig2.pdf

Eight of the ten holes intersected zones of mineralization comprising silver ± lead-zinc, with local low-grade gold values. This complex, polymetallic style of mineralization makes it difficult to assign a single cut-off grade, so the intersections listed below describe the main intervals which contain significant values of Ag, Pb or Zn.

The intersections in Table 2 are shown on the cross sections, Figures 3 (a) to 3 (d). Cross section locations are shown on Figure 2.

Table 2. Cerro Cubilete, selected drill-hole intersections

Hole Width (m) Au(g/t)* Ag(g/t)* Pb(%)** Zn(%)** From To
CCDDH01 4 0.00 54 0.08 0.10 17 21
8 0.01 85 0.14 0.06 25 33
Including
1 0.03 201 0.12 0.07 25 26
and
1 0.00 183 0.16 0.12 30 31
0.5 0.03 131 0.26 0.17 38.75 39.25
1 0.07 553 0.16 0.01 49 50
CCDDH03 5 0.31 51 0.04 0.02 50 55
CCDDH04 2 0.00 354 1.88 1.22 33 35
1 0.00 466 0.15 0.08 39 40
42.5 0.01 46 1.98 0.83 55 97.5
Including:
2 0.00 44 6.00 2.20 65 67
and:
3.5 0.00 47 4.65 1.64 71.5 75
and:
1 0.02 106 1.99 1.25 79 80
and:
0.5 0.03 26 8.32 1.32 97 97.5
CCDDH05 1.5 0.05 347 2.82 1.29 35.5 37
19 0.00 56 0.57 0.82 59 78
Including:
2 0.00 109 0.63 1.24 71 73
and:
1 0.00 145 1.00 1.00 75 76
2 0.00 74 1.41 1.14 93 95
17 0.02 49 0.98 0.88 100 117
including:
1 0.02 118 1.22 1.26 109 110
10 0.06 26 0.54 0.66 142 152
CCDDH06 2 0.02 261 1.07 0.42 59 61
21 0.00 24 0.53 0.13 103 124
Including:
1 0.01 135 1.00 0.39 103 104
CCDDH07 1 0.00 192 0.87 0.02 43 44
10 0.29 57 0.05 0.05 67 77
Including:
3 0.62 159 0.08 0.10 68 71
8 0.13 168 0.02 0.01 84 92
Including:
3 0.27 338 0.03 0.02 84 87
2 0.29 187 0.09 0.13 97 100
CCDDH08 2 0.01 109 0.14 0.04 13 15
1 0.09 200 0.32 0.15 21 22
32 0.01 75 3.02 0.66 26 58
Including:
1 0.00 186 0.31 0.07 26 27
and:
12 0.00 111 >6.03 1.22 28 40
and:
2 0.03 178 2.56 0.67 54 56
35 0.01 11 0.50 0.56 189 224
Including:
3 0.02 24 2.76 0.85 196 199
CCDDH09 1 0.01 61 0.67 2.01 47 48
59 0.06 27 1.60 1.01 61 120
Including:
4.5 0.04 26 2.69 2.63 65 69.5
and:
2 0.10 30 10.43 2.74 85 87
and:
4.5 0.08 86 3.77 1.00 99 103.5
and:
1 0.31 13 6.59 1.00 119 120
0.5 0.14 35 5.99 0.37 174.5 175
CCDDH10 7 0.00 49 0.03 0.01 24 31
0.5 0.00 47 7.26 0.18 93 93.5
0.5 0.00 84 3.14 2.77 126 126.5
0.5 0.01 56 2.06 1.19 191 191.5

Note: 1: * Fire assay method; ** ICP Ore method

To view 'Figure 3 (a). Cerro Cubilete cross section A', please visit the following link: http://media3.marketwire.com/docs/samcfig3.pdf

To view 'Figure 3 (b). Cerro Cubilete cross section B.', please visit the following link: http://media3.marketwire.com/docs/samcfig4.pdf

To view 'Figure 3 (c). Cerro Cubilete cross section C', please visit the following link: http://media3.marketwire.com/docs/samcfig5.pdf

To view 'Figure 3 (d). Cerro Cubilete cross section D' please visit the following link: http://media3.marketwire.com/docs/samcfig6.pdf

Notes to Figures 2 (a) to 2 (d): Faults are shown as blue lines, dashed where inferred. Mineralized outlines are shown in red, stylized to indicate inferred extensions in depth.

To view 'Figure 4. Longitudinal vertical projection, Cerro Cubilete drill intersections showing width in meters, g/t Ag, % Pb, % Zn.', please visit the following link: http://media3.marketwire.com/docs/samcfig7.pdf

Broad zones of mineralization at Cerro Cubilete occur in fragmental volcanics in the footwall of, and parallel to, an east-dipping fault. Volcaniclastic rocks in the hangingwall of the fault are unoxidized and unmineralized, whereas those in the footwall are oxidized, hydrothermally brecciated, and in part mineralized. Host rocks were brecciated and oxidized prior to the mineralizing event, so that they are replaced by sulfides and cross-cut by sulfide-bearing veins.

Drilling on four fences has defined an east-dipping and probably south-plunging mineralized body over a strike length of at least 270m and width up to 70m, open in all directions (Figures 3 and 4). Mineralization dips 30-45º east sub-parallel to the volcanic stratigraphy and the hangingwall fault. Styles of mineralization include barite veins with base metal sulfides; sulfide replacement zones; patches of coarse galena-sphalerite, and subordinate chalcopyrite (holes CCDDH08/9); and Ag-rich epithermal quartz veins and vuggy, silicified oxidized tuff. Deeper mineralization typically consists of pyrite and Pb-Zn sulfides commonly associated with barite, but an apparently later phase of Ag-rich epithermal quartz is also present at shallower levels (Figure 4).

Deep zones of narrow and/or low grade Pb-Zn mineralization occur in holes CCDDH08 and CCDDH10 (Table 2), separate from the main body at Cerro Cubilete. These intersections and the pattern of surface geophysical and geochemical anomalies suggest possible widespread mineralization which will become the target for future drilling.

At Cerro Cubilete, silver and base metals are associated with strongly anomalous Fe, Mn, Ba, As, and Mo in both outcrop and drill-core, suggesting an intermediate sulfidation style of mineralization. Anomalous values of these elements also occur in outcrop at Cerro de la Mina, 1 km to the west (see below).

CERRO DE LA MINA

As announced previously, Cerro de la Mina is an area in which old prospect pits expose barite and manganese, approximately 1 km NW of Cerro Cubilete. Rock chip sampling by Samco in 2012 delineated a zone of anomalous geochemistry which includes Fe, Mn, Ba, As, Pb, Zn, Cu, and Mo. The geochemical signature is similar to Cerro Cubilete except for the absence of a silver anomaly, suggesting that the Ag-rich upper part of the mineralization is absent or has been eroded. The geochemical anomaly is within a large ground magnetic low which trends NW and also passes through Cerro Cubilete. These features are illustrated on Figure 5

No holes have yet been drilled at Cerro de la Mina, pending the results of lag sampling and the IP survey in progress.

To view 'Figure 5. Cerro Cubilete and Cerro de la Mina. Rock chip geochemical anomalies are superimposed on a ground magnetic (tilt derivative) image, illustrating the NW-trending magnetic feature which appears to constrain mineralization at both Cerro Cubilete and Cerro de la Mina. Underlying Quickbird satellite image shows the ephemeral lake to the north of the prospect.', please visit the following link: http://media3.marketwire.com/docs/samcfig8.pdf

ONGOING EXPLORATION

On April 30, 2013, Samco commenced a 30 linear km program of gradient array induced polarization geophysics and lag geochemical sampling over Cerro de la Mina and the area to the south of Cerro Cubilete, with selected lines of pole-dipole I.P (±3km). These programs are designed to more closely define the Cerro de la Mina geochemical and magnetic anomaly, and to provide support for drilling to the south and east of Cerro Cubilete.

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

"These very strong results from Corina confirm our expectation of the significant potential of the property. The potential for the Cubilete Structure to extend both down dip and to the north and south is very exciting, as are the potential other structures which have been identified at depth and to the west. The IP program, coupled with the extensive lag sampling, will assist us in prioritizing targets for the next drill program. This polymetallic geological model appears to be a new one for the Deseado Massif, but it has parallels in deposits identified further to the north in Patagonia."

The exploration program is directed by Samco Gold's Exploration Manager, Lic. Marcelo Ortiz advised by Mr. David Shatwell who is a Fellow of the Australian Institute of Geoscientists and a Fellow of the Society of Economic Geologists. Sr. Ortiz has extensive 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.

Core from the Cerro Cubilete drill-holes has been assayed for Au, Ag and a suite of 39 other elements, by the following methods:

  • Au by fire assay with as AAS finish
  • Ag by fire assay with a gravimetric finish
  • Ag, Cu, Pb and Zn, plus 35 other elements, were analyzed by ICP (inductively coupled plasma). This method has an upper detection limit of 1% for Pb and Zn. Samples in which Pb and Zn exceeded 1% were re-analyzed by a method known as ICP Ore, which has an upper detection limit of 30%. One sample exceeded 30% Pb and needs to be re-assayed by another method.

Drill collar locations are in Gauss-Kruger coordinates, using the Campo Inchauspe datum, and were acquired by differential GPS with negligible error.

About Samco Gold Limited

Samco Gold's principal business is the acquisition, exploration and development of precious metals resource properties in South America. 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 including the Corina, Yasmin 1, Judite 1 and Ginette and Giancarla projects.

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