Samco Gold Limited
TSX VENTURE : SGA

Samco Gold Limited

September 04, 2013 07:00 ET

Samco Gold Makes Surface Gold Discoveries at Its Corina Project; Adds Coincident Lag Anomalies to IP Targets

TORONTO, ONTARIO--(Marketwired - Sept. 4, 2013) - Samco Gold Limited (TSX VENTURE:SGA) ("Samco Gold" or the "Company") is pleased to announce encouraging results of further surface exploration work including a lag survey and further rock chip sampling at its Corina Project in Santa Cruz province, Argentina.

HIGHLIGHTS

  • Lag survey carried out at 25m intervals over the core Cerro de la Mina area previously the subject of geophysical survey.
  • A cluster of gold samples assaying up to 10.2 g/t Au, 170 g/t Ag was identified at Cerro de la Mina, coincident with a strong IP anomaly.
  • A further gold anomaly of 4.9 g/t Au, 53 g/t Ag was recorded 1.3km south of the Cerro de la Mina-Cerro Cubilete target coincident with a further NNW trending IP anomaly that appears to continue south towards the adjacent Cerro Moro project.
  • The Au:Ag ratio is materially higher in the recent samples than that previously identified in samples found at Cerro Cubilete, offering the potential for a different style of mineralization to that already known.
  • Known mineralization at Corina comprises base metal sulfides ± Ag. Samco believes that the correlation between the IP targets and Au-Ag grades may imply that Au-Ag veins similar to those which occur in the adjoining Cerro Moro property are also present. The association between the Au-Ag lag anomalies and a prominent chargeability feature is regarded as encouraging.
  • Strong clusters of anomalous Pb-Zn values in association with Ba, Mn, Mo and As extend south of Cerro de la Mina to the eastern limit of the sample grid (over 1.5km in potential strike). The mineralization appears to be strongly influenced by a NNW-trending structure expressed as a linear I.P. anomaly.

PROGRAM OVERVIEW

Lag geochemistry

The lag survey comprised 23 east-west lines 100 m apart, sampled every 25m. It covers essentially the same area as the geophysical survey carried out over the Cerro de la Mina prospect and its extension to the south, announced on June 17, 2013. Two reference lag samples were also taken over known Ag mineralization at Cerro Cubilete. They assayed 124 and 100 ppm Ag, thus supporting the effectiveness of the method.

Lag geochemistry aims to detect metal anomalies by separating heavier or coarser surface material such as pisolites or quartz fragments from finer-grained exotic components such as volcanic ash from recent eruptions, wind-blown material etc. It is considered a particularly effective method in Patagonia where both recent ash and wind-blown dust are commonly present. In the present survey, the material sampled was sieved to provide a fraction in the plus 3 mm to minus 19 mm size range. Samples were assayed by Alex Stewart Argentina S.A. for Au and Ag by fire assay with an AAS finish, with lower detection limits of 0.01 and 2 ppm respectively. Ag was also analyzed by ICP (Inductively coupled plasma), with lower and upper detection limits of 0.5 and 200 ppm. Ag values reported here are the ICP determinations up to 200 ppm, and the fire assays for samples above 200 ppm. 38 other elements including As, Ba, Cu, Pb and Zn were also determined by the ICP method.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/sga904fig1.pdf

Gold-silver anomalies: A cluster of three lag samples at Cerro de la Mina immediately west of a shallow ephemeral lake returned Au values above 1 ppm (Figure 1):

  • 10.2 ppm Au, 170 ppm Ag
  • 7.1 ppm Au, 154 ppm Ag
  • 4.7 ppm Au, 43 ppm Ag

These three anomalous samples are 800m NW of existing drill-holes at Cerro Cubilete, and occur in an area of chargeability anomalies recorded in the I.P. survey.

Two other lag samples returned anomalous Au values above 1 ppm:

  • 6.7 ppm Au, 94 ppm Ag
  • 4.9 ppm Au, 53 ppm Ag

These two samples are 700m west and 1.3 km south of the three anomalous samples west of the lake.

Anomalous gold values have been recorded in rock chip samples and drill-core at Cerro Cubilete, but this is the first time that gold values above 1 ppm have been recorded at Cerro de la Mina. Known mineralization at Corina comprises base metal sulfides ± Ag, but Au-Ag veins similar to those which occur in the adjoining Cerro Moro property may also be present. The association between the Au-Ag lag anomalies and a prominent chargeability feature is regarded as encouraging.

Pb and Zn anomalies: Figures 2 and 3 illustrate the distribution of Pb and Zn values on the lag geochemistry grid. Pb values above 250 ppm are strongly clustered in the Cerro de la Mina area west of the lake, in the area of the north-trending I.P. features and Au-Ag anomalies mentioned above. A similar pattern is shown by Zn values above 80 ppm, and the distribution of higher values in both these elements appears to be strongly influenced by a NW-trending I.P. feature.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/sga904fig2.pdf

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/sga904fig3.pdf

Silver anomalies: Figure 4 shows the distribution of Ag independent of Au on the lag grid. Values between 2 and 52 ppm are widely distributed across the grid; values above 52 ppm are restricted to the samples which also contain anomalous Au shown in Figure 1, and to the area of known Ag mineralization at Cerro Cubilete.

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/sga904fig4.pdf

Other elements: As, Ba, Cu, Mo and Mn show similar distributions to Pb and Zn, with high Ba also in the southern and SW part of the sample grid.

Rock chip sampling

Recent rock chip sampling has returned four gold values of 0.2-0.25 g/t at Cerro de la Mina. The corresponding Ag values are all below 6 ppm, whereas similar or higher gold values in rock chips at Cerro Cubilete are associated with much higher Ag values. The anomalous samples at Cerro de la Mina seem to show a broad association with both a NW ground magnetic trend and with NW to north-south I.P. anomalies (Figure 5). The contrasting Ag:Au ratios at Cerro Cubilete and Cerro de la Mina suggest different metal associations in the two areas.

To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/sga904fig5.pdf

An assay of 299 ppm Ag was previously reported (June 17, 2013) from a 20cm, WNW-striking barite vein 250m WNW of the Cerro Cubilete drill-holes. After cleaning off surface material, the vein was re-sampled over 1.5m, and averaged 185 ppm Ag over that width.

Conclusions and next steps

Recent lag sampling at Cerro de la Mina and its extensions has shown that:

  • Au-Ag veins as well as the known base metal-silver mineralization may be present at Cerro de la Mina.
  • Anomalous Pb-Zn values in association with Ba, Mn, Mo and As extend south of Cerro de la Mina to the eastern limit of the sample grid. The mineralization appears to be strongly influenced by a NNW-trending structure expressed as a linear I.P. anomaly.

Further geochemical and other surface work will continue on the core Cerro de la Mina-Cerro Cubilete area and their southern and western extensions. The property offers substantial further exploration upside along the NW trending lineament on which these more advanced targets sit.

Commenting on the recent results Charles Koppel, Executive Chairman and CEO of Samco Gold said:

"We are pleased with the latest results from Corina which continue to support and exceed our expectations. Although still in the early stages of exploration, with now two potential types of mineralization on the property and strong target extension to the south and west, Corina is looking increasingly like it could become one of the more exciting projects in the region."

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.

Sample locations are in Gauss-Kruger coordinates, using the Campo Inchauspe datum, and were acquired by hand-held GPS with an 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 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.

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