Lundin Gold Inc. ("Lundin Gold" or the "Company") is pleased to announce the start-up of exploration drilling on five regional targets near its Fruta del Norte ("FDN") project in Ecuador.
A 26-hole, 10,500 metre drill program is planned on five high priority targets located 15 to 20 kilometres south of FDN (please see attached map). The drilling campaign is planned to be carried out in two phases with the first phase comprising 20 holes totalling approximately 7,500 metres. Based on results, a second phase of follow up drilling is anticipated with current plans of up to 3,000 additional metres.
Ron Hochstein, President and C.E.O. of Lundin Gold, commented, "Our extensive land package encompasses a highly prospective mineralized trend that includes the high grade FDN gold deposit. We believe there is great potential for new discoveries and the potential to become a new mining district in Southern Ecuador."
Based on IP Geophysics (Gradient Array and Pole-Dipole), field programs, and reinterpretation of historical data, previously existing targets have been improved significantly and new targets have been defined. The following describes some of the key features for three of the highest priority targets.
- Sinter found in outcrop in 2015 indicating that the drill locations are in the very top of an epithermal system (paleo surface expression of hydrothermal activity).
- Favourable geological and structural environment interpreted, potentially representing the incipient phases of a previously unknown pull apart basin. This is based on updated structural interpretation and geophysical survey results.
- Mineralization in volcanic breccia boulders consists of silica and marcasite much like FDN.
- Coincident anomalous gold and arsenic in previous soil surveys extending over 800 metres over the target.
- Coincident chargeability anomaly and subtle resistivity anomaly.
- Located in what is interpreted as the southern extension of the Bonza - Las Peñas fault zone which hosts the FDN deposit.
- Surface grab samples from stockwork veining in outcrops had previously returned values in the 1.0 to 4.0 g/t Au range, and locally up to 86.0 g/t Au based on 2016 sampling. These results have extended the target area to the southeast. Channel sampling over the same outcrops returned values of 6.5 g/t Au over 7 metres, including 11.8 g/t Au over 3 metres.
- Mineralization is again associated with silicification and marcasite. The mineralization is believed to be from the upper level of an epithermal system based on mineralogy, geochemistry and presence of opaline silica veinlets. Highest assays are associated with sub-horizontal silica and marcasite filling fractures, and to a lesser extent with sub-vertical quartz veinlets.
- IP Survey (Pole-Dipole) shows a well defined and strongly discordant resistivity anomaly, coincident with the gold geochemical anomaly. Well defined resistivity may be associated with silicification, which is typical alteration associated with epithermal gold deposits like FDN.
- Coincident anomalous gold and arsenic in previous soil surveys extending over 900 metres over the target as well as in boulders.
- Mineralization associated with silicification and marcasite.
- Opaline silica, quartz crystal lined open space cavities, and very low base metals suggest the target is at high level with respect to the underlying epithermal system.
- Well defined IP Resistivity anomalies (gradient array and Pole-Dipole) spatially coincident with the gold-mineralized boulders.
- Target associated with an important NNE structure which could be structurally related to the Bonza - Las Peñas fault zone.
- Coincident high mercury and moderate arsenic in previous soil surveys, much like the original FDN soil anomaly.
The drill rigs have arrived on site as well as the helicopter support. Drilling is anticipated to start within a week.
The disclosure of a scientific or technical nature contained in this news release was prepared by Nicholas Teasdale, MAusIMM CP(Geo), Lundin Gold's Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101. For a description of the assay procedures and the quality assurance program and quality control measures applied by Lundin Gold on the Robles target, please see Lundin Gold's Annual Information Form dated March 14, 2016 filed under the Company's profile on SEDAR at www.sedar.com.
The information in this release is subject to the disclosure requirements of Lundin Gold under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on April 20, 2016 @ 2:30 p.m. Pacific Time.