Samco Gold to Commence Drill Testing of Cerro Cubilete Prospect on
Its Corina Project
TORONTO, ONTARIO -- (Marketwire) -- 01/08/13 -- Samco Gold Limited
(TSX VENTURE:SGA) ("Samco Gold" or the "Company") is pleased to
announce that it has made significant progress at its Corina project
where the Cerro Cubilete prospect is now ready for preliminary drill
-- A ground magnetic survey was carried out in September, 2012 over an area
of approximately 16 km2. The survey shows a broad, NW striking magnetic
low feature coincident with argillic alteration within the WNW to NW
striking Cerro Mina-Cerro Cubilete structural corridor.
-- Detailed geological mapping of substantially the same area was carried
out in November and December, 2012 by consulting geologist N.J. Callan.
This mapping, covering approximately 10.5 km2, has defined the volcanic
sequence and predominant geological structures in the area mapped.
-- Together with earlier results, further chip sampling of the Cerro
Cubilete prospect has yielded a total of 116 rock chip samples of float
and outcrop, of which half the samples are above a cut-off grade of 55
g/t Ag and average approximately 460 g/t Ag.
-- There is scope for down-dip continuity of mineralization at Cerro
Cubilete both as manto-like bodies on the easterly-dipping contact
between brecciated ignimbrite and well-stratified tuff, and as steeply-
dipping bodies on an inferred fault between these two units.
-- A c.1,650m diamond drill test program will be drilled at Cerro Cubilete
on three WNW-oriented sections across the outcropping mineralization
(three holes on each of three sections spaced 50-60m apart across the
zone). Results of this initial program, to be completed this quarter,
will determine ongoing exploration.
The Company's intention to carry out geological mapping, additional
sampling, hand-dug trenching, and a ground magnetic survey at its
Cerro Cubilete silver prospect on the 5,000 hectare Corina Project in
Santa Cruz province, Argentina, was announced in the previous release
on September 4, 2012. This work has now been completed. As a result,
the Company has a better understanding of the geological controls to
the mineralization, and the prospect is now ready to be drill tested.
Cerro Cubilete lies within the Corina project (comprising the Corina,
Corina 1 and Mercia tenements) held by Samco Gold, adjoining the
Cerro Moro project owned by Yamana Gold (Figure 1). Cerro de la Mina,
also shown on Figures 1, 2 and 4, is an adjacent area of small
workings which expose minor barite and Mn oxide mineralization.
To view Figure 1, please visit the following link:
Rock chip sampling
To date, Au and Ag results have been received for 292 float and
outcrop samples from the Corina and Mercia tenements. Analyses for 38
other elements, including pathfinders, have been received for 213 of
There are currently 116 rock chip samples of float and outcrop which
correspond to the Cerro Cubilete prospect. Some statistics of these
samples are provided in the following table:
Ag cut-off (g/t) No of samples % of total Av Au Av Ag Av Au equivalent
0 116 100 0.10 243 4.5
55 58 50 0.19 460 8.6
110 51 44 0.20 513 9.5
These samples were collected to define the extent of the
mineralization, and therefore cannot be regarded as representing the
average grade of the zone. However, it is encouraging that half the
samples are above a cut-off grade of 55 g/t Ag and average
approximately 460 g/t Ag. For a Ag:Au equivalence factor of 55:1, the
average of all Cerro Cubilete samples is 4.5 g/t Au equivalent, and
half of them average 8.6 g/t Au equivalent.
To view Figure 2, please visit the following link:
In November and December, 2012, consulting geologist N.J. Callan was
contracted to carry out geological mapping at 1:5000 scale within the
area of the existing ground magnetic survey. This mapping, covering
approximately 10.5 km2, has defined the volcanic sequence and
predominant geological structures in the area mapped.
Figure 3 shows part of this mapping, over the Cerro Cubilete-Cerro de
la Mina area, and also shows a thematic representation of Ag grades
from rock chip samples.
Unit Jv_x(wd), bx is a moderately to strongly welded and commonly
brecciated rhyodacitic ignimbritic tuff. It is overlain by
well-stratified tuffaceous volcanics and volcaniclastics coded Jv_t,
vs and Jv_lt on Figure 3. The well-stratified unit is in fault
contact with a homogeneous, moderately to strongly welded ignimbrite
containing quartz, feldspar and biotite phenocrysts (Jv_txf, wd)
which lies to the north and probably extends below the (currently
dry) lake shown on Figure 3.
To view Figure 3, please visit the following link:
The Cerro Cubilete mineralization occurs in a NNE-trending zone
conspicuous for the development of earthy hematite. The zone is 300m
long and 75m wide at its northern end, and tapers towards the south.
It is almost orthogonal to WNW-trending faults which appear to form
the northern and southern limits of the mineralization and which also
form fault boundaries between contrasting volcanic units.
At its northern end, the zone contains many colloform-crustiform
banded quartz veins mostly less than 30 cm but occasionally (as
displaced blocks) up to a metre wide, hosted by the brecciated
rhyodacitic ignimbrite. At the southern end, mineralization appears
to be replacing a veneer of the overlying well-stratified tuff.
Ground magnetic survey
A ground magnetic survey was carried out in September, 2012 by
Quantec Geoscience Argentina S.A. over the area shown in Figure 2,
which covers approximately 16 km2. The survey was run on E-W
gridlines spaced 50m apart.
N Callan commented that 'the survey shows a broad, NW striking
magnetic low feature coincident with argillic alteration within the
WNW to NW striking Cerro Mina-Cerro Cubilete structural corridor,
probably reflecting pyritization and destruction of any magnetite in
the host units within the altered corridor'.
This structural/magnetic corridor localizes many small workings for
Mn and barite in altered, brecciated rhyodacitic ignimbrite, in the
Cerro de la Mina zone, less than 1 km north-west of Cerro Cubilete.
Rock-chip sampling in this area has not returned significant Ag or Au
values, but other elements which include As, Mn, Fe, Ba, Mo, and base
metals show similar anomalous values to Cerro Cubilete (Figure 4).
Additional work is required to define the significance of the Cerro
de la Mina mineralization.
To view Figure 4, please visit the following link:
Mineralization of similar style to Cerro Cubilete has not been
publicly reported at the adjoining Cerro Moro property to the south.
However the La Negra zone of the former Mirasol Resources Joaquin
property, recently acquired by Coeur d'Alene Mines Corporation, also
in the Deseado Massif, (www.mirasolresources.com, accessed on
December 29, 2012) is an example of a silver deposit combining
stratiform manto-like components and a higher-grade, steeply-dipping
feeder zone, with mineralization in the form of stockwork veinlets
and breccias in both these elements.
There is scope for down-dip continuity of mineralization at Cerro
Cubilete both as manto-like bodies on the easterly-dipping contact
between brecciated ignimbrite and well-stratified tuff, and as
steeply-dipping bodies on an inferred fault between these two units.
The company will aim to test both these possibilities with a
core-drilling program in the first quarter of 2013. Holes will be
drilled on three WNW-oriented sections across the outcropping
mineralization (three holes on each of three sections spaced 50-60m
apart across the zone) for a total of approximately 1650m. Results of
this initial program will determine ongoing exploration.
Commenting on the recent results Paul Richardson, Chief Executive of
Samco Gold said:
"The early indications at Cerro Cubilete are encouraging and we look
forward to receiving further information as a result of this targeted
drill program. Our current field activity is not limited to just
Corina as, elsewhere in our portfolio, we are carrying out
preliminary field work on the Ginette and Giancarla projects in the
West of the region, which have revealed some promising targets for
follow up, as well as the ongoing surface exploration program at El
Dorado Monserrat which is adding considerably to our understanding of
the project and yielding some exciting new targets for future
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
The above Au and Ag assays were performed on rock chip samples by
Alex Stewart Argentina S.A., using fire assay with atomic absorption
finish on 50 gram pulp samples. Sample 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.
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
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
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
Samco Gold Limited
Chief Executive Officer
+44 20 7740 5791
Press spacebar to pause and continue. Press esc to stop.