Tolima Gold Inc.
TSX VENTURE : TOM

September 11, 2012 08:17 ET

Tolima Gold Inc. Announces High-Grade Gold Sampling Results from the San Pablo Mine at the Remedios Project, Colombia

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2012) - Tolima Gold Inc. ("Tolima" or the "Company") (TSX VENTURE:TOM) is pleased to announce results from the Company´s ongoing underground systematic sampling of existing galleries at the San Pablo mine, demonstrating high gold grades.

The San Pablo mine is located within the 11,500 hectares of Tolima´s 100% owned Remedios Project, located in the Segovia Batholith in the north of the Colombian department of Antioquia. San Pablo mine is located 2 km south of the Segovia Project of Gran Colombia Gold Corp. and consists of vein type mineralization with over 3 kilometres of galleries in 5 levels along the vein, reaching 300 metres of depth and bearing N 5°E direction and dipping 30° SE.

Highlights

Underground channel sampling on the San Pablo vein was conducted on several segments located between levels 3 and 4 over an extension of 160 metres along strike and as high as 30 metres along dip (Figures 1 & 2). A total of 78 vein samples were taken along significant dip and strike lengths across average widths, yielding the following average grades:

  • 13.2 g/t Au, 7.4 g/t Ag across 0.66 metres, along 30 metres
    Including 29.0 g/t Au, 14.8 g/t Ag across 0.52 metres, along 7 metres

  • 15.3 g/t Au, 10 g/t Ag across 0.52 metres, along 5 metres
    Including 23.5 g/t Au, 13.7 g/t Ag across 0.58 metres, along 2.5 metres

  • 5.2 g/t Au, 4.4 g/t Ag across 0.86 metres, along 37 metres
    Including 7.9 g/t Au, 6.5 g/t Ag across 0.85 metres, along 6.0 metres

  • 5.3 g/t Au, 4.5 g/t Ag across 0.74 metres, along 32 metres
    Including 8.9 g/t Au, 7.0 g/t Ag across 0.65 metres, along 11.5 metres

The weighted average grade of the samples is 5.7 g/t Au and 4.3 g/t Ag with an average true width of 0.72 metres.

Some significant segments of samples are shown in the following table:

SEGMENT Length Average width Au Ag
ID (m) (m) (g/t) (g/t)
CHS-341 37.0 0.86 5.2 4.4
Including 6.0 0.85 7.9 6.5
CHS-343 30.0 0.66 13.2 7.4
Including 7.0 0.52 28.6 14.8
CHS-344 32.0 0.74 5.3 4.5
Including 11.5 0.65 8.9 7.0
CHS-345 5.0 0.52 15.3 10.0
Including 2.5 0.58 23.5 13.7

The link below includes Figure 1; a plan view of the San Pablo mine showing underground cross-cuts sampling colour-coded for gold grades and data from significant gold grade segments.

http://tolimagold.com/images/sanpablo2.jpg

The link below includes Figure 2; a NW-SE Cross section perpendicular to strike of the San Pablo vein, illustrating a 30° dip and the different mine levels.

http://tolimagold.com/images/seccion2.jpg

Jaime Lopez, President and CEO of the Company, stated "these results support our long term strategy for the San Pablo mine, which includes continued exploration efforts aimed at identifying an economic commercial scale deposit, as well as continued development work for the purposes of feeding our current processing plant in order to streamline the processing and recovery of minerals and to provide cash flow to support ongoing operations of the Company."

Current Works

Mining: Currently the company is mining ore from a set of chambers that connect levels 3 and 4 on a pilot/trial basis and is processing it at the Company's San Pablo processing plant.

Mine Development: Current mine development works are being carried out at 300 metres in level 5 following the vein along strike and down dip inside the mine's main shaft aiming towards level 6. The current working fronts expose the vein at an average width of 0.8 metres showing significant mineralization and demonstrating that the system remains open to the North and at depth.

Sampling: The San Pablo vein has been continuously sampled in channels including 20 cm of footwall and hanging wall.

Geological Environment

The San Pablo mine is located inside the gold district of Segovia-Remedios, within a favorable geological environment with potential for additional vein type deposits with significant contents of precious metals. The mineralization outcrops dominantly the Segovia Batholith represented by igneous rocks of cuarzodiorite composition of Jurassic age, metamorphic rocks of Precambrian-Paleozoic age and Cretaceous sedimentary rocks. Within this intrusive rock there is a regional faulting such as Otú and Nus faults with N45-60W/35-50NE and N10-30E/30SE directions and satellite faulting, which have served not only as conduits for mineralizing fluids, but also controlling the gold-vein system of mesothermal type that are present in the region. According to geological surveys conducted in the region previously and the characteristics of gold mineralization, the vein deposits that occur in the area correspond possibly to the Orogenic gold model of Epizonal type.

Technical Information

Underground Channel Sampling was carried out along channels 10 cm wide by 5 cm deep, perpendicular to the main direction of the mineralization. This procedure was done by slashing and opening channels with the help of a geological hammer. The average sample sizes weighed approximately 5 kg and were taken at average spacing of 2.5 m.

Qualified Person, Joaquin Buenaventura, has reviewed the technical information in this news release and stated, "Mineralization in the Remedios-Segovia gold district often includes ore shoot zones. The significant gold values that appear on the 3rd and 5th shaft of the San Pablo mine indicate a zone of ore shoots in this sector of the mine that may continue at depth. Therefore we plan to focus our exploration efforts in that direction."

Qualified Person

The technical information in this press release has been approved by Mr. Joaquin Buenaventura (P. Geo.), a Qualified Person and the Company's Vice-President of Exploration. Mr. Buenaventura has over 40 years of experience in the mining industry in Colombia, and he has a Master's Degree in mineral exploration from Queen's University in Kingston, Ontario, Canada. He was a General Manager of Ingeominas (Colombian Institute of Geology and Mines), and has worked as a Senior Geologist, Project Manager and Consultant for various mining and energy companies. Mr. Buenaventura has been an academic professor as well for over 16 years at the Universidad Nacional de Colombia in Bogota. He has over 50 publications related to the mining industry in Colombia.

Quality Assurance and Quality Control

The Company utilizes an industry-standard QA/QC program. The channel samples were prepared in Medellin's laboratory and then shipped for fire assay analysis (FAA) to ALS-certified assay laboratory in Lima, Peru. The remaining samples are stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the samples pack to monitor laboratory performance. The materials were packed in polyethylene bags, labeled, tightly sealed and sent to ALS- laboratory for preparation in Medellin Colombia and analysis in Lima Peru. A portion of the samples are periodically check assayed at ACME or SGS laboratories, in Santiago, Chile and Lima, Peru, respectively.

Information Concerning Tolima

Tolima is a gold exploration, development and production company with interests in mining properties in Colombia. Tolima's properties include the Remedios Project, located in the Remedios/Segovia mining district in the Antioquia Department of Colombia, with over 11,500 hectares of exploration ground, two mines (the "San Pablo" and "Bartola" mines) and an operating gold processing and recovery plant located in the area of "San Pablo" with a capacity of 100 tons per day; the ANCAL Project, located in the Marmato/Caramanta district of the Caldas and Antioquia Departments of Colombia, including more than 28,000 hectares of exploration ground; and the NORTOL project, located in the Tolima Department of Colombia, including more than 48,000 hectares of exploration ground and the "Papayo" mine, which is being rehabilitated. Tolima is continuing to explore opportunities for the acquisition of additional mining interests in prospective mining districts in Colombia.

Cautionary Statements

Some of the ownership interests in the Company's mining properties derive from applications for concessions or mining titles beneficially held, which are subject to formal assignment to the Company's operating subsidiaries. Such applications and assignment are subject to review by the relevant mining authority and to registration before the National Mining Registry of Colombia in order to confirm current compliance with the terms of each mining property and meeting with certain legal, financial and technical criteria. There is no certainty as to if or when issuance of mining titles from applications or formal registration of assignments will be achieved.

Forward-looking statements

This news release contains certain "forward looking statements" including, for example, the ability of Tolima to achieve formal assignment and registration of its mining properties and the ability to carry out exploration activities. 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 to successfully manage the political and economic risks inherent in pursuing mineral exploration opportunities in Colombia; and the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop the 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 intend, 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.

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