Source Exploration Corp.

TSX VENTURE : SOP


Source Exploration Corp.

May 26, 2014 08:00 ET

Source Intersects 1.44 g/t Gold Equivalent Over 45.0 Metres With Step-Out Drilling at Las Minas

Step-out drilling extends skarn mineralization, open in all directions

THUNDER BAY, ONTARIO--(Marketwired - May 26, 2014) - SOURCE EXPLORATION CORP. (the "Company" or "Source") (TSX VENTURE:SOP) is pleased to report step-out drilling at the Santa Cruz target of its Las Minas project continues to intersect wide zones of gold-silver and copper skarn mineralization including 1.44 g/t Gold Equivalent (Au Eq) over 45.0 metres in hole LM-14-SC-04. A high-grade interval grading 11.96 g/t over 2.0 metres was intersected in the upper portion of the drill hole. Drilling at Las Minas is scheduled to resume in the first week of June. Current activities at the site include construction of drill roads and pads, with planned detailed surface mapping and sampling for target generation.

Highlights from the remaining 3 holes from the 17-hole diamond drilling program at the El Dorado and Santa Cruz targets (see press release dated April 7, 2014) include:

Table 1 Selected Las Minas Drill Results

Hole No. From
(M)
To
(M)
Interval
(M)
Gold
g/t
Silver
g/t
Copper
%
Au Eq(1)
g/t
Comments
LM-14-SC-04 0.0 13.7 13.7 0.39 4.30 0.96 2.10 From Surface
Including 7.7 9.7 2.0 1.00 22.50 6.05 11.69
Within 0.0 82.0 82.0 0.23 2.40 0.31 0.80
And within 0.0 51.6 51.6 0.24 3.00 0.39 0.95
And 159.0 186.5 27.5 1.49 1.77 0.25 1.94
Within 159.0 204.0 45.0 1.03 1.52 0.22 1.44
LM-14-SC-05 13.0 19.0 6.0 1.90 5.20 0.42 2.70
LM-14-SC-06 51.0 59.0 8.0 0.47 4.20 0.25 0.96

"The Santa Cruz mineralized zone remains open in all directions and continues to deliver high-grade intercepts contained within wider zones of mineralized skarn," stated Brian Robertson, President and CEO. "We are excited about the recent drill results at Santa Cruz and Eldorado. As a result, we are preparing for Phase 2 of a multi-phase drilling program at Las Minas. The Phase 2 drilling program will consist of 2,000 metres and further the development of an initial mineral resource estimate for the Santa Cruz and Eldorado zones as well as test additional high priority drill targets at Las Minas."

Step-out hole LM-14-SC-O4 is located approximately 125 metres along strike from the high-grade hole LM-11-SC-45 (10.33 g/t Au Eq over 20.0 metres) (see press release January 26, 2012). The hole delineated a high-grade interval in the upper portion of the hole as well as a 45.0 metre intersection from 159.0 metres to 204.0 metres grading 1.44 g/t Au Eq, including a 27.5 metre interval assaying 1.94 g/t Au Eq.

Holes LM-14-SC-05 & 06 were drilled as step-out holes to extend the mineralization intersected in hole LM-12-SC-54 (3.82 g/t Au Eq over 28.0 metres) (see press release October 8, 2012) further to the northeast. Both holes intersected wide zones of mineralization suggesting the continuation of the mineralized zone at depth to the northeast.

A drill map showing the location of the holes at Santa Cruz may be viewed on the Company's website at www.sourceexploration.com - see Projects - Las Minas - Current maps.

All intervals are reported as down-hole lengths and additional information is required to determine true widths for the Santa Cruz drilling. Assays are uncut, length weighted average values.

(1) Gold equivalent (Au Eq) calculations use metal prices of US $1200/oz. for gold, US $19.00/oz. for silver and US $3.00/lb. for copper. No adjustments have been made for potential relative differences in metal recoveries.

Au Eq g/t equals Au g/t + (Ag g/t x 0.016) + (Cu% x1.71)

About Las Minas

The Las Minas Project hosts near-surface gold-silver and copper skarn mineralization and high-grade gold-silver epithermal vein deposits. The project is comprised of six mineral concessions covering approximately 1,616 hectares (3,995 acres), with several small scale, past-producing mines and numerous untested targets.

The district is host to one of the largest under explored gold-silver copper skarn systems known in Mexico, and has a production history that extends back to the Aztec era. The Las Minas granodiorite intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions. The mineralization controls and association with magnetite appear to be similar to the Guerrero Gold belt, which is the site of the Los Filos and Morelos gold deposits.

Las Minas is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets discussed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

Quality Assurance/Quality Control

The technical information in this news release has been reviewed and approved by Sonny Bernales, P. Geo, a registered Professional Geoscientist in the Province of British Columbia and a qualified person as defined by NI 43-101. Mr. Bernales is responsible for logistics and supervision of all exploration activity conducted by Source on the property.

The Company has implemented and adheres to a strict Quality Assurance/Quality Control program which includes inserting mineralized standards and blanks into the sample stream, about 1 for every 10 samples. The standards and blanks were obtained from CDN Resource Laboratories Ltd. of Langley, BC, Canada. Each sample bag is properly sealed and kept in a secured, restricted storage place prior to shipping to the lab. Samples are shipped directly by Source or picked-up by the lab vehicle with chain of custody/sample submittal signed and dated. The Company sends it samples to SGS Mineral Services (ISO/IEC 17025) at Durango, Mexico, an accredited and independent laboratory.

About Source Exploration

Source Exploration is a Canadian based mineral exploration company committed to building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals deposits in Mexico. Source is exploring the Las Minas Project, which is located in the core of the Las Minas district in the Veracruz State, Mexico. The district is host to one of the largest under explored skarn systems known in Mexico and has a strong production history that dates back to the Aztec era.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the magnitude or quality of mineral deposits, anticipated advancement of mineral properties or programs, future operations, results of exploration, prospects, commodity and precious metals prices, future work programs, anticipated financial and operational results, capital expenditures and objectives and the completion and timing of mineral resource estimates. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors, which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's disclosure documents available at www.sedar.com. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based on the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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