Samco Gold Limited
TSX VENTURE : SGA

Samco Gold Limited

September 05, 2012 09:00 ET

Samco Gold Extends Strike of Quartz Vein to 800m on Its Herradura Target at El Dorado Monserrat

TORONTO, ONTARIO--(Marketwire - Sept. 5, 2012) - Samco Gold Limited (TSX VENTURE:SGA) ("Samco Gold" or the "Company") is pleased to announce the results of further drilling on the Herradura target at its El Dorado Monserrat project:

HIGHLIGHTS

  • HDDH022 intersected multiple narrow zones of mineralization between 146m and 200m down hole, including 3m of 4.6 g/t Au, 19 g/t Ag north of the pyritic breccia announced previously.

  • HDDH023 intersected two structures including 0.7m of 9.3 g/t Au, 70 g/t Ag and extends the interpreted strike of the east-west quartz vein reported previously by a further 300m towards the east for a total strike length of some 800m between the intersections in HDDH014 (reported previously) and HDDH023.

  • HDDH026 and HDDH027 were drilled on the same section mid-way between (previously announced) HDDH015 and HDDH013. Both holes intersected two structures; the best intersection being 6m of 2.1 g/t Au, 130 g/t Ag (HDDH027).

OVERVIEW

Results have been received for the last eleven holes drilled at the Herradura prospect at Samco Gold´s El Dorado Monserrat project (Figure 1). Intersections above 1 g/t Au equivalent are tabulated below (Au equivalent = g/t Au + g/t Ag/60).

To view Figure 1. Location of the Herradura Prospect on the El Dorado Monserrat Project, please visit the following link: http://media3.marketwire.com/docs/Figure1Samco.jpg.

Table 1. Collar details of holes drilled at La Herradura and results received

Hole E N Azim Angle Depth g/t
Au
g/t
Ag
Width From
HDDH016 2532593 4632350 197 -50 37 Abandoned
HDDH019 2532275 4632461 197 -60 222 NSV
HDDH020 2532303 4632538 197 -60 201 NSV
HDDH021 2532020 4632630 197 -60 198 NSV
HDDH022 2532344 4633012 197 -60 336 4.3 28 1 146
4.6 19 3 160
3.3 11 1 167
1.0 9 1 187
1.5 10 1.5 200
HDDH023 2532444 4633018 197 -60 312 9.3 70 0.7 109.8
1.5 14 1.5 131.5
HDDH024 2532147 4633043 197 -60 321 0.9 52 3 220
HDDH025 2531947 4633074 197 -60 291 NSV
HDDH026 2532029 4632990 197 -60 264 1.3 31 1 111
3.3 140 2 129
HDDH027 2532051 4633066 197 -60 303 1.3 6 2 190
2.1 130 6 216
HDDH028 2532510 4632912 197 -60 46.8 Abandoned

Holes HDDH022 to HDDH027 were drilled to explore the E-W quartz vein reported in the previous announcement, whereas HDD016, HDDH019, HDDH020 and HDDH021 explored targets to the south.

To view Figure 2. Collar locations of holes included in this announcement and selected drill section lines, please visit the following link: http://media3.marketwire.com/docs/Figure2Samco.jpg.

  • HDDH022 was drilled on cross section 2250E (Figure 3). It intersected multiple narrow zones of mineralization between 146m and 200m down hole, including 3m of 4.6 g/t Au, 19 g/t Ag, immediately north of the pyritic body intersected in HDDH011 (31.1m, 1.5 g/t Au, 57 g/t Au), reported previously, which appears to be truncated by a major fault.

To view Figure 3. Cross section 2250E, please visit the following link: http://media3.marketwire.com/docs/Figure3Samco.jpg.

  • HDDH023 was drilled to explore down-dip from HDDH010, in which low-grade intersections were reported previously. It shows that the mineralization in HDDH010 does not continue in depth, however the two intersections shown in the table, including 0.7m of 9.3 g/t Au, 70 g/t Ag are new veins in the hangingwall of the mineralization in HDDH010. These intersections suggest a mineralized structure or structures extending between HDDH014 and HDDH023, a distance of over 800m.

  • HDDH024 was drilled on cross section 2050E to explore below the previously-reported intersection of 5.5m of 11.2 g/t Au, 73 g/t Ag in HDDH013 (Figure 4). The low-grade intersection reported in Table 1 and shown on Figure 4 appears to be on that structure, but in the footwall of the same fault as shown on Figure 3, which places andesitic volcanics in contact with the dacitic host rocks to the mineralization in HDDH013.

To view Figure 4. Cross section 2050E, please visit the following link: http://media3.marketwire.com/docs/Figure4Samco.jpg.

  • HDDH025 was drilled on section 1850E to explore down-dip from the intersection in HDDH015 (4m of 2 g/t Au, 42 g/t Ag), but was probably not deep enough to intersect the structure (Figure 5).

To view Figure 5. Cross section 1850E, please visit the following link: http://media3.marketwire.com/docs/Figure5Samco.jpg.

  • HDDH026 and HDDH027 are on the same section mid-way between HDDH015 and HDDH013. The best intersection was 6m of 2.1 g/t Au, 130 g/t Ag.

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.

The above Au and Ag assays were performed on half-core by Alex Stewart Argentina S.A., using fire assay with atomic absorption finish on 50 gram pulp samples. Drill-hole 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. Unless otherwise stated, intersections quoted in this release are down-hole widths, and are greater than true widths depending on vein and drill-hole geometries.

About Samco Gold

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.

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