Tolima Gold Inc.
TSX VENTURE : TOM

February 14, 2012 08:00 ET

Tolima Gold Commences 10,000-Metre Drill Program at Remedios Project

La Bartola, San Pablo and La Gabriela Mines

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2012) - Tolima Gold Inc. (TSX VENTURE:TOM) ("Tolima" or the "Company") is pleased to announce that it has commenced a 10,000 m diamond drilling program focused on 3 separate target areas (San Pablo, La Gabriela and La Bartola) with 31 drill holes on the Remedios Gold Project, located in the NE Antioquia Department of Colombia. These three areas cover an extension of 411 ha of highly prospective terrain, within a well-known gold district of Segovia with a vast mining tradition, where mining constitutes the primary economic activity and source of employment in the region. The La Bartola mine is located 500 m East from San Pablo's mine and the La Gabriela is 3 km North from San Pablo's mine. (See map at http://www.tolimagold.com/images/Remedios-mine.jpg.)

Historical Data

The La Bartola mine has been known for more than 100 years and between 1950 and 1980 it was one of the richest mines in the Remedios area. La Bartola was exploited by Choco Pacific Company 50 years ago who suspended the exploitation due to security problems.

Past underground works in the area consisted of 4 to 5 main levels separated with vertical distances of 30 m and with a longitude of 200 m following the main veins. These veins were attractive since they presented ore shots zones. Besides the main vein known as La Bartola, there are two more veins within the area known as La Angola and La Bartolita. A non NI 43-101 compliant drilling program was carried out in the past consisting of 5 drilling holes with a depth between 70 to 150 m and with intervals from 0.5 to 9 m with gold values up to 45 g/t.

Geological Environment

The outcrop rock in the area of interest is dominantly the Segovia Batholith which is represented by diorite and granodiorite of Cretaceous age, with regional fault zones with directions N45-60W/35-50NE and N10-30E/30SE, which controls the gold-vein system present in the region. The San Pablo, La Bartola and La Gabriela mines are located in Remedios municipality within a favorable geological environment with potential for vein type deposits with significant contents of precious metals.

Overview of the 2012 Drilling Program

The exploration campaign includes 10,000 m of surface-underground diamond drilling (under HQ and NQ standard diameters) at San Pablo, La Gabriela and La Bartola, out of which 5,980 m will be drilled in 2012.

  • 10 surface and 12 underground diamond drill holes in San Pablo's target
  • 5 surface diamond drill holes in La Gabriela's target
  • 4 surface diamond drill holes in La Bartola's target

The objective of surface drilling is to explore in depth the main veins and define the existence of more veins that possibly occurs below and over the main structure.

The purpose of the underground drilling is to solve the structural problems of the main vein in the San Pablo's mine and to explore the new veins that outcrops on the surface and projected in depth below the main vein.

Furthermore, a systematic channel sampling of the main veins within underground workings in the San Pablo's and La Bartola's mine will be conducted.

Information Concerning Tolima

Tolima is a gold exploration and development company with contractual interests in gold properties in Colombia. Tolima's mineral properties in Colombia include (i) the Remedios Project, located in the Remedios/Segovia mining district in the Antioquia Department of Colombia, including an underground mine in the development stage (the San Pablo Mine) and a gold processing and recovery plant located in the property with capacity of approximately 100 tons per day, which Tolima intends to bring into operation and to expand current capacity; (ii) the Marmato Project, consisting of approximately 25,000 hectares of exploration grounds with several defined exploration targets, located in the Marmato/Caramanta district in the Caldas and Antioquia Departments of Colombia; and (iii) the Nortol property, located in the Tolima Department of Colombia, including more than 40,000 hectares of exploration area and the "El Papayo" underground mine. Tolima is continuing to explore opportunities for the acquisition of additional mining interests in prospective mining districts in Colombia.

Cautionary Statements

Some of the interests in mining properties in Colombia held by Tolima are held beneficially and are subject to formal assignment to Tolima subsidiaries. Formal assignment is subject to review by the relevant mining authority and to registration before the National Mining Registry of Colombia, and is also subject to current compliance with the terms of each mining property and to meeting certain legal, financial and technical criteria. There is no certainty as to when such formal registration will be achieved.

Many of the interests are also held pursuant to preliminary or conditional documentation with the legal holders or beneficial holders of the respective mining titles or applications and are subject to further definitive agreements and conditions, and there is no certainty as to when such definitive documents will be completed or if the conditions will be satisfied.

Forward-looking statements

This news release contains certain "forward-looking statements" including, for example, with respect to completion of the drilling program and the ability of Tolima to achieve formal assignment and registration of its mining properties. Such forward-looking statements involve risks and uncertainties, both known and unknown. The results or events depicted in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding and are implicit in, among other things: receipt of government and third party approvals in respect of transferring assets, the state of the capital markets; tax issues associated with doing business internationally, the ability of Tolima to successfully manage the political and economic risks inherent in pursuing mineral exploration opportunities in Colombia; and the ability of Tolima to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, Tolima does not intent and disclaims any duty or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise.

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

  • Tolima Gold Inc.
    Lisa-Marie Iannitelli
    647.476.7577

    Tolima Gold Inc.
    Marcela Ospina
    +57.4.444.7479
    www.tolimagold.com

    Contact Financial Corp.
    Kirk Gamley
    Investor Relations
    604.689.7422 or Toll Free 1.877.689.7411