Jun 12 2015
Brian Arkell, CEO and President of Caza Gold Corp. is pleased to provide an update on results of the airborne magnetic survey completed on the Los Andes Project near Boaco, Nicaragua. The Los Andes project is located one hour east of Managua along the Pan American highway and is close to major infrastructure.
The Los Andes Project is a district-scale exploration area covering over 6,500 hectares (65 sq. km). Exploration by Caza has identified a number of high-sulfidation epithermal centers within the district as well as low-sulfidation epithermal veins along the periphery. Tertiary andesitic volcanic rocks associated with multiple intrusive rocks and caldera complexes host alteration and Au-Ag mineralization. The Company has identified several targets along a structural corridor over 11 km long. Au-Ag mineralization has been identified on surface associated with silicification, argillic alteration, breccia pipes, and diatremes.
Airborne Magnetic Survey
A high resolution helicopter-borne magnetic and radiometric survey covering some 55 square kilometers over the Los Andes area was completed April 18th, 2015 (figure 1). The survey was conducted by Geotech Ltd. (formerly Aeroquest Airborne) of Ontario, Canada. Approximately 550 line kilometers were flown at 100 meter line spacing with an average instrument height of 36 meters achieved.
Initial data processing was completed by Geotech - Aeroquest. Detailed final processing along with quality control was completed by Buks Lubbe, geophysicist of the Caza team. Results were modeled using Geosoft cloud-based Magnetization Vector Inversion software. Two 3-dimensional magnetic models were calculated: (1) a regional model with 50 meter cells over the entire area, and (2) a 25 meter 3D cell detailed model over the northern part of the survey.
Review of the initial results has identified a number of anomalous areas and has greatly enhanced the structural model of the Los Andes trend (figure 2). A very large magnetic high is centered over the Quisaltepe area, interpreted as a large, buried intrusive body. At least four other magnetic highs, likely intrusive bodies, associated with alteration and surface geochemical anomalies, were identified as follow-up prospects. Five large areas of interpreted as magnetite destruction are evident in the data. Three potassium radiometric anomalies were identified as well (figure 3).
Brian Arkell, CEO and President of Caza Gold Corp., commented: "The aeromag survey has greatly enhanced our knowledge of the district and has identified a number of excellent targets that require follow-up groundwork and drilling. The survey identified several covered anomalies as well as other targets previously unknown, further highlighting the exploration potential in this recently-discovered district."
Caza now plans to complete surface reconnaissance mapping and sampling in the target areas delineated by the survey, to further develop the prospects. This work will be carried out in Q3 concurrent with drilling planned at our San Francisco and Pedregal projects.
The Company continues work on other targets in the Los Andes region including San Francisco and Pedregal. At San Francisco, two drill ready targets have been identified, a low-sulfidation vein target and a broad silicified breccia target in andesitic volcanic rocks. At Pedregal, a high-sulfidation Au-Ag target has emerged covering an extensive area of silicified, argillized, and brecciated andesitic volcanics. These prospects have been mapped and sampled in detail this year, and Caza is currently developing drilling plans for these targets.
Brian Arkell, MSc. Geology, SME Registered, Fellow AusIMM, President and CEO, is the Qualified Person who reviewed and approved the contents of this news release.