Samco Gold Limited
TSX VENTURE : SGA

Samco Gold Limited

September 04, 2012 09:00 ET

Samco Gold Discovers New High Grade Silver Target Adjacent to Cerro Moro

TORONTO, ONTARIO--(Marketwire - Sept. 4, 2012) - September 4th 2012 - Samco Gold Limited (TSX VENTURE:SGA) ("Samco Gold" or the "Company") is pleased to announce the discovery of new high grade silver targets at its Corina project:

HIGHLIGHTS

The Corina project comprises c.5,065 hectares of exploration concessions immediately to the north of the Cerro Moro project recently acquired by Yamana Gold (formerly owned by Extorre Gold Mines).

An initial program of mapping and chip and channel sampling following up on targets identified in a previous satellite imagery analysis has confirmed a number of exciting targets, most notably the Cerro Cubilete and Cerro de la Mina prospects.

(1) Cerro Cubilete

  • An area of outcrop of dark quartz and quartz-iron oxide breccia has been identified over a north-south elongated area measuring approximately 250m long by up to 90m wide. Within this area, 44 outcrop samples averaged 268 g/t Ag, with a maximum value of 1295 g/t Ag

  • Immediately north of the area of outcropping veins, four float samples assayed 806, 162, 591 and 275 g/t Ag. Four other float samples south of the outcrop area assayed 227, 1572, 929 and 1,440 g/t Ag.

  • Two other float samples inside the area of outcrop (and not included in the average grade of 268 g/t Ag cited above) assayed 302 and 4,668 g/t Ag.

(2) Cerro de la Mina

  • Cerro de la Mina lies approximately 600m NW of Cerro Cubilete and hosts many small prospecting pits which expose minor barite and Mn oxide mineralization in rhyolite.

  • Seven samples from this area assayed above 50 ppm Mo, with a maximum of 219 ppm, in a NNW linear trend 300m long. In Samco´s experience, Mo can be a useful pathfinder to precious metal mineralization in this environment.

INTRODUCTION

The Cerro Cubilete prospect is located within the Corina Project, which comprises the Corina, Corina 1 and Mercia exploration claims held by Samco Gold Limited, approximately 55 km south-west of Puerto Deseado (Figure 1). The claims adjoin each other, with a total area of approximately 5,065 hectares, and also adjoin claims to the south held by Yamana Gold Corporation, which cover the Cerro Moro gold-silver project.

Samco Gold has carried out initial rock chip sampling in both the Corina and Mercia permits, and has also completed geological mapping at 1:2000 scale over a 3 km2 area which includes prospects known as Cerro de la Mina and Cerro Cubilete. The sampling program involved collection of 210 rock chip samples of outcrop and float. The samples have been fire assayed for Au and Ag and analysed for a suite of 38 other elements by Alex Stewart Laboratories in Perito Moreno, Santa Cruz.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/samcof1.jpg

Cerro Cubilete prospect

The rock chip sampling has outlined an area of silver mineralization, which has been named Cerro Cubilete, near the western boundary of the Mercia claim. The prospect consists of a low ridge of altered ignimbrite and rhyolite, which trends southward from a shallow brackish lake (Figure 2). On the ridge, outcrops of dark quartz and quartz-iron oxide breccia occur over a north-south elongated area measuring approximately 250m long by up to 90m wide. Within this area, 44 outcrop samples averaged 268 g/t Ag, with a maximum value of 1295 g/t Ag. Some outcrops contain a dark sulfide believed to be the silver sulfide acanthite, however this needs to be confirmed by mineragraphic examination. The high Ag grades are accompanied by anomalous Cu, Mo, Ba and base metals, suggesting an intermediate sulfidation style of mineralization.

Immediately north of the area of outcropping veins, four float samples near the edge of the lake assayed 806, 162, 591 and 275 g/t Ag. Four other float samples south of the outcrop area assayed 227, 1,572, 929 and 1,440 g/t Ag. Two other float samples inside the area of outcrop (and not included in the average grade of 268 g/t Ag cited above) assayed 302 and 4,668 g/t Ag.

Gold values were background or below detection limit in most samples, however the float sample which assayed 4,668 g/t Ag also assayed 3.38 g/t Au, and five other samples assayed between 0.17 and 0.75 g/t Au.

Table 1 (below) is a list of all samples with grades >100 g/t Ag, showing coordinates, sample type, Au and Ag assay. Au values at or below the detection limit of 0.01 g/t are shown as 0.

The mineralization appears to be terminated towards the south by a west-north-west strike-slip fault, but its northern limit has not been determined due to the lake mentioned above. At this stage, continuity of the mineralization between samples is unknown since sample density is constrained by the available outcrop.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/samcof2.jpg

Cerro de la Mina prospect

Approximately 600m NW of Cerro Cubilete, the adjacent hill, Cerro de la Mina, contains many small prospecting pits which expose minor barite and Mn oxide mineralization in rhyolite. Most of these working are distributed along a NNW trend. Structures in this area dip steeply and trend between WNW and NNW. Sampling in this area returned low precious metal values (average 0.04 g/t Au, 2.6 g/t Ag), but seven outcrop and float samples assayed above 50 ppm Mo, with a maximum of 219 ppm, in a NNW linear trend 300m long (Figure 3). In Samco´s experience Mo is considered a useful pathfinder to precious metal mineralization in this environment.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/samcof3.jpg

Relationship to Cerro Moro

Detail maps showing major vein locations and geology of the Cerro Moro prospect are available in a NI 43-101 Technical Report filed by the then owners of the property, Extorre Gold Mines Limited on April 2, 2012. The report (the "Extorre Technical Report") is available on SEDAR (www.sedar.com) and was accessed by Samco on August 24, 2012. In that report, an indicated resource of 2,425,000 tonnes grading 7.4 g/t Au, 498.9 g/t Ag, for 1.336 Moz Au equivalent was announced. An additional inferred resource of 4,747,000 tonnes grading 3.5 g/t Au, 172 g/t Ag (1.053 Moz Au equivalent) was also estimated.

Figure 1 shows the relative locations of the Cerro Moro tenements and vein systems and the Corina-Mercia property, including the Cerro Cubilete mineralization. The Cerro Moro veins have various orientations but globally lie within a NNE corridor which trends towards Corina-Mercia. Both the Cerro Moro and Cerro Cubilete mineralization styles could be described as intermediate sulfidation, however there are significant differences between the two areas, especially in the Ag:Au ratios of approximately 60:1 at Cerro Moro and over 2000:1 at Cerro Cubilete.

Proposed program

Cerro Cubilete is a highly encouraging new discovery by Samco Gold. Ongoing exploration will include:

  • A 320 line km ground magnetic survey covering both Cerro Cubilete and Cerro de la Mina, and extending south towards the southern property boundary;
  • Trenching across the mineralized zone at Cerro Cubilete;
  • Additional rock chip sampling;
  • Extension of the geological mapping.
  • Mineragraphic studies

Following these programs, a drill program will be designed to test the continuity and depth extent of the mineralization.

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

"This exciting new discovery at our Corina project confirms the significant potential that exists in the Samco Gold portfolio. We are very impressed with the targets so far identified on Corina and look forward to further developments as the exploration program there gathers momentum. Elsewhere in the province, similar early stage work at some of the other projects in the pipeline is underway and we look forward to updating the market on further developments, both at our core El Dorado Monserrat project and elsewhere in the portfolio, as the field season evolves."

Table 1. Corina-Mercia samples with Ag >100 g/t
SAMPLE TYPE E N g/t Au g/t Ag
501023 CHIP 2685870 4684367 0.06 116.43
501071 CHIP 2685817 4684266 0 290
501072 CHIP 2685805 4684217 1 876
501074 FLOAT 2685847 4684505 0 591
501075 FLOAT 2685875 4684492 0 275
501076 CHIP 2685863 4684369 0 546
501080 CHIP 2685864 4684371 0 299
501081 CHIP 2685846 4684426 0 369
501082 CHIP 2685843 4684431 0 205
501084 CHIP 2685834 4684429 0 421
501085 CHIP 2685829 4684429 0 281
501086 CHIP 2685829 4684436 0 527
501087 FLOAT 2685815 4684415 0 302
501089 FLOAT 2685767 4684197 0 1572
501090 FLOAT 2685769 4684201 0.08 227
501093 CHIP 2685795 4684291 0.04 366
501094 CHIP 2685891 4684259 0.75 485
501095 CHIP 2685816 4684288 0.09 104.8
501098 CHIP 2685793 4684211 0.34 242
501110 CHIP 2685864 4684372 0 206
501112 CHIP 2685853 4684425 0 411
501113 CHIP 2685865 4684426 0.02 123.2
501120 FLOAT 2685744 4684170 0.29 929
501121 FLOAT 2685801 4684179 0.22 1440
501125 CHIP 2685831 4684398 0.05 391
501126 CHIP 2685831 4684398 0.03 526
501127 CHIP 2685825 4684399 0.02 389
501128 CHIP 2685825 4684397 0 144.3
501129 CHIP 2685833 4684398 0.02 135.1
501130 CHIP 2685834 4684399 0.01 407
501131 CHIP 2685838 4684399 0 595
501137 CHIP 2685846 4684316 0.57 392
501138 FLOAT 2685855 4684325 3.38 4686
501140 FLOAT 2685739 4684510 0 161.5
501141 FLOAT 2685724 4684519 0.03 806
501147 CHIP 2685845 4684410 0 276
501148 CHIP 2685841 4684422 0 540
501149 CHIP 2685823 4684428 0.02 118.7
501162 CHIP 2685819 4684264 0.05 243
501193 CHIP 2685818 4684429 0.17 571
501194 CHIP 2685821 4684425 0.02 135

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 and has reviewed and approved the above technical disclosure. Neither Samco nor Mr. Shatwell is able to verify the information in the Extorre Technical Report cited above. Such information is not necessarily indicative of the mineralization on the Corina project.

The above Au and Ag assays were performed on rock chip samples by Alex Stewart Argentina S.A., using fire assay with atomic absorption finish on 50 gram pulp samples. Sample 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.

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. 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