Jun 19 2013
Batero Gold Corp. ("Batero," or the "Company") is pleased to provide an update on recent field exploration results, 2013 development initiatives, and upcoming diamond drilling at the Company's Batero-Quinchia Project (the "Project"), Colombia.
Based on successful H1 2013 field exploration, drilling will commence on two new near surface gold oxide targets pending the selection of a drill contractor. A total of seven new exploration targets have been defined from the exploration program. Both of the high priority oxide target areas are within 200 metres of the La Cumbre oxide deposit.
The oxide zone at the La Cumbre deposit measures a total area approximately 750 metres by 400 metres with a total depth ranging from 20 metres to 80 metres. The La Cumbre oxide deposit, the focus of the pending Preliminary Economic Assessment, is expected to be the initial phase of a staged mine development. The forthcoming study also includes an underlying approximately 1g/t gold sulphide zone that trends to a total depth of approximately 250 metres.
The two new high priority oxide drill targets defined from this year's exploration program (Antenna and Cumbre Sur) measure a total area approximately 600 metres by 250 metres and 750 metres by 150 metres respectively. The Company anticipates drilling depths ranging from 60 to 70 metres in this phase 1 drill program.
A minimum of 1,300 metres of shallow drilling have been budgeted at the two new oxide target areas. An infill drill program has been budgeted to follow upon initial success. Each target reflects strong supportive anomalies of either geochemical soil sampling, adjacent rock sampling in creeks, and/or field mapping. For locations of the Antenna and Cumbre Sur oxide targets, please view Figure 1- Plan View of Oxide Targets and La Cumbre Near Surface Oxide Deposit: http://media3.marketwire.com/docs/881139.jpg or visit http://www.baterogold.com/en/maps/oxide-targets
The Antenna oxide target is located approximately 200 metres north east of the La Cumbre oxide deposit and has an area of approximately 600 metres by 250 metres. The Company anticipates drilling approximately 800 metres at this target. Field exploration consisted of mapping supported by soil and rock sampling, as well as grid spaced auger sampling to map rock units underlying pockets of thin volcanic ash cover. The exploration resulted in the identification of 2 zones of more dense fracture and veinlet controlled mineralization similar in style to the central zone of the La Cumbre deposit and within the same host rock.
Highlight soil samples within the Antenna oxide target include:
- Sample (SL0632) of 1.115g/t Gold hosted in near surface saprolite
- Sample (SL1514) of 1.810g/t Gold hosted in near surface saprolite
- Sample (SL1394) of 0.442g/t Gold hosted in near surface saprolite
Highlight 2 metre rock chip samples within the Antenna oxide target include:
- Rock Chip Sample (MQ1716) of 1.935 g/t Gold
- Rock Chip Sample (MQ1740) of 2.760 g/t Gold
- Rock Chip Sample (MQ1734) of 1.465 g/t Gold
- Rock Chip Sample (MQ1735) of 1.445 g/t Gold
The second high priority oxide target, Cumbre Sur, is located approximately 100 metres south of the La Cumbre oxide deposit and has an area approximately 750 metres by 150 metres. The Company anticipates drilling approximately 500 metres at this target. Field exploration consisted of mapping supported by soil sampling, rock sampling and test pit excavation on 100 metre centres along the trend of the ridge.
Highlight soil samples within the Cumbre Sur oxide target include:
- Soil Sample (SL2020) of 1.235g/t Gold
- Soil Sample (SL0845) of 0.845g/t Gold
- Soil Sample (SL0911) of 0.652g/t Gold
Highlight rock chip samples from the edges of the Cumbre Sur target include:
- Rock Chip Sample (MQ1203) of 1.555 g/t Gold
- Rock Chip Sample (MQ0072) of 0.756 g/t Gold
- Rock Chip Sample (MQ1538) of 0.996 g/t Gold
- Rock Chip Sample (MQ1636) of 0.924 g/t Gold
"We are pleased to have outlined new targets of near surface oxide gold mineralization in close proximity to the La Cumbre deposit. Initial work at both the Cumbre Sur and Antenna targets suggest similar gold in soil anomalies that were shown to be coincident with underlying gold mineralization in saprolite and primary rock at La Cumbre. We believe these targets may have the potential to be complimentary to the La Cumbre oxide deposit." stated Brandon Rook, President and CEO of Batero Gold. "The Company is continuing to focus on a staged development plan with the La Cumbre oxide deposit as a focus for the initial phase in a larger development plan. Our significant treasury has reduced financing risk and will provide the capital resources for exploration drilling, advanced studies on the project, as well as the opportunity for production focused acquisitions beyond the Quinchia district."
2013 Development Initiatives
Batero has completed its goal of field exploration across the entire concession block area. This reconnaissance and soil sampling program resulted in the discovery of an additional 15 historical adits and the generation of seven new exploration targets, two of which are the Antenna and Cumbre Sur oxide targets.
The Company has analyzed over 1500 samples with a Terraspec™ mineral analyser and will be processing this data to generate a series of mineral distribution maps and 3D models to support its geo-metallurgical model, future metallurgical test work, as well as determine vectors associated with epithermal style mineralization adjacent to and within the Amarilla Structural corridor, a significant structural zone associated with the emplacement of the La Cumbre-El Centro-Dos Quebradas mineralization (See NI 43-101 Mineral Resource Estimate on the Batero-Quinchia Deposit, February 24, 2012).
In addition, Batero has commenced the selection of a consultant to define terms of reference and scheduling for the feasibility-level metallurgy test work program for the La Cumbre oxide deposit. The Company anticipates this work program to commence shortly.
Progress towards completion of the Preliminary Economic Assessment on the La Cumbre Deposit is proceeding well and Roscoe Postle Associates (RPA), the independent consultant providing the NI 43-101 Preliminary Economic Assessment (PEA) report, has indicated that The Company will receive the first draft of the PEA in mid-July. Pending receipt of the draft document, the Company will proceed with an internal review process for anticipated release of the final Preliminary Economic Assessment in Q3 2013.
The Company anticipates commencing a scoping level study in the near future on the Batero-Quinchia deposit as the second phase of the staged development of the project.
Please visit www.baterogold.com for all maps and images.
Sample Preparation, Assays, and Quality Assurance/Quality Control
Rock chip samples and grab samples are collected from surface outcrops and cleaned tunnel exposures and logged into Batero Gold's sample database at the La Cumbre camp. All QC samples are introduced before shipment in security tagged sacks to ALS Chemex's sample preparation facilities in Medellin, Colombia. Prepared samples are then shipped to ALS's analytical facilities in Lima, Peru or La Serena, Chile for analyses. Gold is fire-assayed using a 50.0 gram aliquot sample and Atomic Absorption finish (AA). Multi-element analysis is achieved by Four Acid Digestion and an Induced Coupled Plasma (ICP) finish.
The Company's QA/QC program includes the regular insertion of blanks, multiple certified assay standards and duplicate samples into the sample shipments. These QC samples are inserted in every assay batch. Regular monitoring of these QC samples is a critical part of Batero Gold Corps QA/QC protocols. Darryl Lindsay, Ph.D., P.Geo., Senior Vice President and Chief Operating Officer at Batero Gold, is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information provided in this release and all future news releases.
ON BEHALF OF THE BOARD OF BATERO GOLD CORP.
Brandon Rook
President & CEO
Batero Gold Corp.