Cerrado Gold (TSX.V:CERT)(OTCQX:CRDOF) announced the highest grade intercept ever reported at its Minera Don Nicolas operation in Santa Cruz, Argentina (“MDN”).
RC Hole PA_RC23-123 intercepted outstanding results from 109m of 12m (apparent width) at 122.2 g/t gold, including 3m at 429.1 g/t from 109m. This intercept ranks within the top best metal content (linear grade: m* Au g/t) in MDN’s all-time exploration drilling results. Additionally, 3 other relevant intercepts at 126m (2m at 2.9 g/t Au), 132m (1m at 2.4 g/t Au) and 142m (2m at 4.2 g/t Au) are interpreted as high grade cores along parallel structures.
- 12m at 122.2 g/t Au at 109 meters deep
- Including 3m at 429.1 g/t Au, the best intercept ever drilled by Cerrado in Argentina
- Likely significantly expands the resource available for current mining operations
- Application for permits for Paloma Underground mine development initiated with filing of EIA and design works commenced
- Calandrias Norte Open Pit stripping underway
- Calandrias Sur Heap Leach project ramp up continues
Hole PA_RC23-123 (Figures 1. and 2.) was collared approximately 150m to the west of MDN’s operating high grade Chulengo pit. The hole was collared to target the extension of Chulengo’s first order controlling structure. This West/Southwest trend can be traced on surface following intense hydrothermal alteration along a strike length of over 650m. The Chulengo high grade pit is located on the eastern edge of the trend, and the Baritina high grade pit sits 200m north of the western edge of the trend. The Company is immediately following up with additional holes in the area.
Figure 1. Conceptual cross Section of hole PA-RC23-123
Numbers in interpreted mineralized trends, correspond to relevant intercepts in Table 1.
Figure 2. Plan View of Paula Andrea Block
The outstanding results from hole PA_RC23-123 are detailed in Table 1 meter by meter from 109m where the hole intercepted the mineralized zone. Following the Chulengo empirical model, besides the steep dipping structures, this area is permissive also to host sub horizontal shoots as conceptualized in the above cross section.
From 109m to 144m hole PA_RC23-123 intersected pervasive silicification on a rhyodacitic ignimbrite flow. The alteration/mineralization assemblage includes dickite; abundant sulfides; and possible presence of gold telluride (aligned with ICP analysis). All these three mineralogical/geochemical features are diagnostic of the high-grade mineralization in Chulengo, providing additional confidence in this new discovery zone. Cerrado has mobilized a diamond rig to the target and will follow up aggressively to test shallower expression of this intersection, understand the geometry and outline the continuity of the newly discovered zone.
Table 1. Assay Results and Relevant Intervals
Additionally, the Company is pleased to provide an update on progress of its development projects and the MDN Minera Don Nicolas operation in Santa Cruz, Argentina.
The Company has contracted a Chilean Company, B Mining Limitada, to complete studies and engineering designs for three additional development opportunities; namely:
Calandrias Norte Open Pit and the Calandrias Norte Underground Project, located adjacent to the Company’s operating Heap Leach Operation in the North of the MDN property; and
Reviewing the Paloma Sur Underground potential, representing the continuation at depth of the high-grade Paloma open pit deposit.
The Argentinian team has completed and submitted the necessary documents for an Environmental Impact Assessment (“EIA”) for the Paloma Sur Underground project. The final approval is expected to be awarded within the coming months.
At the nearby Calandrias Norte deposit, waste stripping is accelerating, opening up a new source of high-grade ore to feed the CIL plant. Stripping is expected to be completed towards the end of October.
Exploration work to upgrade and expand the underground mineral inventory is underway at both Paloma Sur and Calandrias Norte and preliminary results are encouraging. Contractors have been invited to tender development proposals and, most likely, the company will outsource all underground activities.
At the new Calandrias heap leach project, mining and ore placement on the heap leach pad continues to ramp up to full capacity. To date, over 280,000 tonnes of ore have been placed on the pad and irrigation capacity continues to expand as the pad is developed. This is expected to result in a steady ramp up of gold production over the coming months. Despite some early operating challenges due to weather, the heap leach is currently producing at a rate of 25 ounces per day and is expected to ramp up to 100 ounces per day by October.
Quality Assurance and Quality Control
Analytical work was carried out Alex Stewart international, Argentina S.A. Labs (ASI). The facilities of the prep lab and assay lab are in San Julian, 184 Km from MDN mine operations. MDN sends routinely out samples to check at ALS international labs (ALS) with the prep lab located in Mendoza and assay labs in Lima, Peru and Vancouver, Canada. In the main laboratory ASI (Mendoza), the samples are systematically analyzed for gold (ppm) and silver (ppm) by fire assay (Au4-50 + AgICP-AR-39) regarding the over limits with fire assay results greater than 10 ppm, a second assay is applied including gravimetric finishing (FA50GRAV), with respect to silver, analyzes greater than 200ppm are carried out by AgFA50GRAV.
ASI has routine quality control procedures which ensure that every batch of samples includes three sample repeats, two commercial standards and blanks. Cerrado used standard QA/QC procedures, when inserting reference standards and blanks, for the drilling program. The Reference material used are from CDN Resource Laboratories Ltd. Included in the batches following MDN internal protocols.
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by Sergio Gelcich, P.Geo., Vice President, Exploration for Cerrado Gold Inc., who is a Qualified Person as defined in National Instrument 43-101.
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