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Atacama Pacific Gold Reports Phase II Exploration Results from Cerro Maricunga Project in Chile

Atacama Pacific Gold Corporation (TSX VENTURE:ATM) has reported drill assay results from the Phase II exploration program underway on its 100%-owned Cerro Maricunga Gold Project, located 140 kilometres northeast of Copiapo, Chile.

All drill holes returned significant intervals of +0.3 gram per tonne gold ("g/t Au") mineralization, hosted within oxidized breccias, including: 116 metres grading 0.77 g/t Au; 100 metres grading 0.53 g/t Au; and, 72 metres grading 0.69 g/t Au. The zone of oxidization extends to depths in excess of 450 metres.

"We are very pleased with the first drill results from our Phase II exploration program and continue to be positively surprised with the depth of oxidization", said Carl B. Hansen, President and CEO of Atacama Pacific. "The drill results support our interpretation that the oxide-associated gold mineralization extends to depth along the 2,500 metre strike length of the zone. With a fourth drill rig to be mobilized to site shortly, two drills will be dedicated to drilling off the Phoenix zone on a 50 metre by 50 metre pattern in preparation for a resource estimate during the third quarter 2011. The other two rigs will focus on drilling the Crux and Lynx zones."

Typically the intervals of +0.3 g/t gold mineralization are surrounded by halos of lower grade material in the 0.2 to 0.3 g/t range. For example, the final 342 metres of CMR-018 averaged 0.50 g/t gold when the lower grade intervals were taken into account, ending in mineralization at 444 metres. Hole CMR-018 was collared at the same location as CMD-010 which was abandoned at 165 metres due to poor ground conditions. The first 24 metres of CMD-010 returned 0.30 g/t Au when a 0.2 g/t cut-off grade is implemented.

Drill hole CMR-14, the deepest hole drilled to date in the Crux zone, extended the gold zone to a depth of 400 metres below surface cutting the Crux zone 150 metres below drill hole CMR-005 (190 metres grading 0.64 g/t Au). Five intervals of +0.3 g/t gold are reported from CMR-014, below 128 metres down hole, including 52 metres grading 0.51 g/t and 48 metres grading 0.61 g/t separated by lower grade intervals. When the lower grade mineralization is taken into account, the entire interval from 128 metres to the end of the hole zone, 270 metres, grades 0.41 g/t gold. CMR-014 was abandoned at 398 metres due to technical issues.

Drill hole CMR-015 cut small andesitic porphyry unit in the centre of the Phoenix zone. The porphyry, which is poorly mineralization, appears to be limited in size. Unfortunately, the hole had to be shut down just as it cut through to the mineralized breccia (10 m grading 0.43 g/t Au) on the other side of the porphyry due to the steepening of the drill hole.

Channel Sampling Results

In addition to the drill results, three new channel sampling intervals are also reported from the Crux Zone. The channel samples results are as follows:

  • Trench T-26 - 65 metres grading 0.93 g/t Au;
  • Trench T-30 - 70 metres grading 0.60 g/t Au; and
  • Trench T-30 - 45 metres grading 0.44 g/t Au.

The channel sampling results established continuity of the Crux Zone along a north westerly strike suggesting that the zone of gold mineralization may extend over a strike length of 700 metres instead of the original interpretation of 250 to 300 metres. A diamond drill will target the Crux Zone over the upcoming months.

Source:

Atacama Pacific Gold Corporation

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