Sandspring Resources Ltd. ("Sandspring" or the "Company") is pleased to announce commencement of the 2016 exploration campaign at its Toroparu Gold Project ("Toroparu") in Guyana, South America.
Sona Hill Prospect
In 2015 the Company completed a 3,700-meter diamond drilling program on the promising Sona Hill Prospect, located 5 km southeast of the main Toroparu deposit. Sona Hill is the eastern most gold anomaly in a cluster of ten gold features located within a 20 km by 7 km hydrothermal alteration halo around Toroparu. Drilling at Sona Hill in 2012 and in 2015 intercepted high-grade mineralization in both saprolite and bedrock, and confirmed the continuity and grade potential of the Sona Hill mineralization. Highlights from the 2015 drill program include:
|* (cut-off grade 0.5 g/t; no grade capping applied)
Drilling to date has confirmed Management's belief that the Sona Hill anomaly hosts higher-grade, shallower mineralization that could complement the existing Toroparu and Satellite deposits and improve project economics. To further confirm the continuity of mineralization between existing drill holes, Sandspring has initiated a 5,800-meter infill drilling program in 50 diamond drill holes on 50m x 50m spacing (Figure 1). This drill density is designed to allow the Company to model and estimate a resource for the Sona Hill anomaly that can be incorporated into the mine plan for the Toroparu project. The drill program should be complete in early December, with results available in February 2017.
To view Figure 1 - 2016 Drill Program for Sona Hill Prospect, please visit the following link: http://media3.marketwire.com/docs/SSP-20160817-Figure1.jpg
Concurrent with the drill program, Sandspring is extending surface exploration west of the Sona Hill anomaly. The program includes saprolite geochemical as well as geophysical surveys designed to identify gold mineralization down-dip and to the west of mineralization currently delineated at Sona Hill. The presence of magnetite in the hydrothermal alteration zones that carry gold mineralization at Sona Hill provide a potential marker for ground magnetics and induced polarization survey methods to trace the mineralization and further define the structural setting in the targeted exploration area. The program includes eight line kilometers of ground geophysics at 100m and 200m spacings (Figure 2), additional sampling to tighten the saprolite geochemistry grid to 100m x 50m, and a small alluvial sampling program.
To View Figure 2 - 2016 Sona Hill Surface Exploration Program, please visit the following link: http://media3.marketwire.com/docs/SSP-20160817-Figure2.jpg
Geochemical surveys in 2015 identified new gold anomalous features in the Otomung Concession north of Toroparu, suggesting a geological context similar to that of the Toroparu Deposit, as predicted by Sandspring's restraining shear bending zone geologic model for the area (Figure 3). The Toroparu Deposit and surrounding gold anomalies lie at the southern edge of a large bending zone in the Puruni Shear Corridor, a regional feature that can be traced more than 100km into the prolific Venezuelan Gold District. Sandspring's geologic model suggests that the northern part of the large bending zone may contain a similar structural pattern as Toroparu and a favorable geological context for gold mineralization within the Otomung Concession area.
To view Figure 3 - Upper Puruni Geological Sketch, please visit the following link: http://media3.marketwire.com/docs/SSP-20160817-Figure3.jpg
In 2015 Sandspring completed a 100-km2 regional geochemical survey on the Otomung Concession, collecting 764 samples on a 1000m x 100m grid. Sandspring will follow up these results with an extension of the survey grid further to the northwest to explore for other intrusive structures, collecting an estimated 300 samples on a 1000m x 100m grid. In addition, the Company will infill survey lines and sampling in the previously explored area to develop new drill targets, collecting an estimated 700 samples on a 200m x 50m grid.
The technical information in this document has been reviewed and approved by Mr. Lucas W. Claessens, P.Geo. and Pascal Van Osta, P.Geo., both Senior Exploration Consultants for Sandspring, who have sufficient experience relevant to the style of mineralization under consideration and are Qualified Persons under National Instrument 43-101.
Reduced Exploration Concession Area
The Company has held mineral exploration concessions in the Upper Puruni River Area of northwestern Guyana, South America, covering an area of 242,691 acres (98,214 hectares) referred to as the "Upper Puruni Property", which hosts the Toroparu Deposit. The Company continuously reviews the composition of its mineral exploration concessions based on the results of exploration work. The results of exploration work to date, including drilling and surface exploration (primarily geochemical and airborne surveys), indicate that the Company should concentrate its land holdings along the Puruni Shear Zone, which runs northwest-southeast along the Puruni River and is believed to extend from the Toroparu Deposit into the Venezuelan Gold District. Accordingly, the Company has been restructuring its mineral exploration concessions to ensure that exploration work and resources are focused on the areas considered to be most prospective.
As an initial step in the land restructuring, the Company acquired rights in 2015 to the Otomung Concession. In June 2016, as a second step in the land restructuring, the Company surrendered 96,067 acres. Accordingly, as of June 30, 2016, the Upper Puruni Property covers a total of 154,696 acres (62,603 hectares). The Company will consider further land adjustments as additional exploration work is completed.
On behalf of the Board of Directors of Sandspring Resources
Richard A. Munson, Director and Chief Executive Officer