Golden Tag Resources Ltd. (“
Golden Tag” or the
"
Company") (TSX.V: GOG) has initiated plans to
unlock organic value through a diamond drill exploration program on
the Company’s 100% owned San Diego Project, one of the largest
undeveloped silver projects in Mexico.
Key Highlights:
- Diamond drill
exploration program of
approximately
4,500
metres, planned to commence early
November 2020, subject to COVID
restrictions
- Exploration focus will be
resource expansion of
the existing compliant mineral resource
block model zones
- Exploration
Manager,
Rafael Puente, added to the team in
Mexico
Greg McKenzie, President and CEO commented, "We
are excited to commence exploration on the Company’s 100% owned San
Diego Project, host to one of Mexico’s largest undeveloped silver
deposits and a prime candidate for resource expansion. San Diego is
located in a highly prospective geologic setting, approximately 2
kilometres northeast of the Peñoles El Cobre Project, which has
nearly 100 drill pads and recently moved into the engineering phase
with optimization studies underway.
After an extensive search of candidates, we
would like to welcome Rafael Puente onboard as Exploration Manager,
Mexico."
2020 Exploration Program
at the San Diego
Project
The 2020 exploration program will consist of
approximately 4,500 metres of diamond drilling in 10-12 holes
focussed on expanding mineral resources in the Fernandez, 1849,
Arroyo and Trovador Zones (Figure 1). The drill program will
commence in early November 2020, subject to restrictions from COVID
and mobilization of the drill company, and will test:
- Trovador Zone over a strike length of 400
metres to a vertical depth of 550 metres within an uncharacterized
area above known silver-lead-zinc mineralization with historical
drill intercepts ranging from 7 to 50 metres.
- 1849 Target within 250 vertical metres located
between holes SD-12-49 (20.4 m @ 73 g/t Ag, 1.81% Pb, 0.89% Zn
& 14.9 m @ 72 g/t Ag, 1,86% Pb, 1.94% Zn) (1)
and SD-07-18 (14.5 m @ 82 g/t Ag, 1.78% Pb, 1.94% Zn & 15.8 m @
34 g/t Ag, 0.49% Pb, 0.62% Zn)(1) at the projected
intersection of the West Contact and East-West Fault Zone, where
thicker intervals of silver-lead-zinc mineralization may
exist.
- The area above the interpreted upper contact of the broad
silver-lead-zinc mineralization within the Fernandez
Zone. The top of the Fernandez Zone was
interpreted by SGS (in 2013) at a vertical depth of 450 metres
below surface, but no drilling has been conducted in this area to
verify the upward extent of the zone.
- Near-surface, higher-grade silver mineralization at the
Arroyo Zone within a 525 metre strike length.
Notes: (1) drill intercepts
taken from Tables 12 & 15, pages 58-60 & 68-69 of the April
12, 2013 SGS 43-101 report; drill intercepts do not necessarily
represent true widths.
The 100% owned San Diego project, located in the
prolific Velardeña Mining district within Durango, Mexico, is among
the largest undeveloped silver assets in Mexico. This
district, dominated by Peñoles, S.A.B. de C.V., has hosted silver
and base metal mining operations for over 100 years. In 2013, the
Company published a 43-101 resource prepared by SGS Canada, as
outlined in Table 1 below on the San Diego Project. The resource
was based on 33,000 metres of drilling and included mineralization
from 23 different zones with strong lateral and vertical
continuity. The last phase of drilling on the property
was completed in 2012.
Table 1: Summary of Estimated Mineral
Resources- San Diego Project (SGS 2013)
SAN DIEGO RESOURCE ESTIMATE
(1) |
CoG (2) |
Tonnes |
Au |
Ag |
Pb |
Zn |
Ag.EQ (3) |
Ag Oz |
(g/t) |
(Mt) |
(g/t) |
(g/t) |
(%) |
(%) |
(g/t) |
(M oz) |
INDICATED RESOURCES |
|
|
|
|
|
|
|
|
Oxide Veins [6] |
133 |
0.31 |
0.43 |
211 |
NA (4) |
NA (4) |
234 |
2.11 |
Sulfide Veins [14] |
52-125 |
1.38 |
0.20 |
123 |
1.23 |
1.85 |
197 |
5.43 |
Fernandez Zone [2] |
52 |
14.8 |
0.06 |
51 |
0.65 |
1.17 |
94 |
24.1 |
TOTAL (5) |
|
16.5 |
|
|
|
|
|
31.6 |
INFERRED RESOURCES |
|
|
|
|
|
|
|
|
Oxide Veins [8] |
133 |
0.29 |
0.43 |
238 |
NA (4) |
NA (4) |
261 |
2.2 |
Sulfide Veins [19] |
52-125 |
13.1 |
0.11 |
93 |
1.41 |
1.83 |
171 |
39.2 |
Fernandez Zone [2] |
52 |
28.7 |
0.05 |
46 |
0.7 |
1.08 |
88 |
42.4 |
TOTAL (5) |
|
42.1 |
|
|
|
|
|
83.8 |
Notes: (1)
Please refer to Table 1, page 3, SGS Canada “NI 43-101 Technical
Report: Updated Mineral Resource Estimate San Diego Project”
effective date April 12, 2013 available on www.sedar.com or the
Golden Tag Web site www.goldentag.ca for further information.
(2) CoG: Cut-Off Grade Ag.EQ (g/t);
please refer to Table 31 on page 104 of the report for further
information. (3) Ag.EQ: Silver Equivalent based on
commodity prices of US$1455/oz Au, US$28.10/oz Ag, US$1.00/lb Pb,
US$0.96/lb Zn applying estimated mill recoveries & smelter
deductions & payables of 64.9% Ag, 76.4% Pb & 57.5% Zn for
sulfide and 60.5% Ag & 62.5% Au for oxide resources. Zn and Pb
are excluded from Ag.EQ for oxide resources and Cu and Au are
excluded from Ag.EQ for sulfide resources. Please refer to Table 30
& Pages 103-104 of the report for more information.
(4) Pb and Zn are excluded from oxide vein
resources due to lack of metallurgical tests illustrating their
potential recoveries. (5) Totals may not add up
precisely due to rounding. (6) (Mt): million
tonnes; (M oz): million ounces.
Cautionary Statement: Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability. The resource estimate for the 21 veins and
mineralized body were defined by a drill pattern and applying
reasonable geological shapes to limit the lateral extent of the
veins and mineralized body. Combinations of cross sectional and
plan level views were used in order to develop an understanding of
the structural relationship and cut off grades were applied. The
indicated and inferred categories were partially based on historic
structures that consistently exhibit lateral continuity and
constant thickness, many of which can be traced along surface for
hundreds of metres. There are no known factors such as
environmental, permitting, legal, title, taxation, socio economic,
marketing, political or other relevant factors which could
materially affect the resources.
Additions to Regional
Technical Team
The Company has added Rafael Puente as
Exploration Manager, Mexico to the technical team. Mr. Puentes is
an accomplished geologist with over 17 years of experience working
in similar roles with companies such as Argonaut Gold, Primero
Mining, Cerro Resources, Kings Minerals, and Great Panther
Resources. The Company has issued to Mr. Puente 200,000 stock
options, each of which may be exercised to purchase one common
share of the Company at an exercise price of $0.36.
About Golden Tag Resources
Golden Tag Resources Ltd. is a junior
exploration company exploring for high-grade silver deposits. The
Company holds a 100% interest, subject to a 2% NSR, in the San
Diego property in Durango State, Mexico. The San Diego property is
located within the prolific Velardeña Mining District, the site of
several mines having produced silver, zinc, lead, and gold over the
past century. For more information regarding the San Diego property
please visit our website at www.goldentag.ca. Golden Tag has no
debt and cash balances of approximately $9.0 million.
For additional information, please
contact:
Greg McKenzie, President & CEOPh:
416-504-2020Email: info@goldentag.cawww.goldentag.ca
Qualified Person
The scientific and technical information in this
document has been reviewed and approved by Bruce Robbins, P.Geo., a
Qualified Person as defined by National Instrument 43-101.
Cautionary Statement:
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
This News Release includes certain
“forward-looking statements” which are not comprised of historical
facts. Forward-looking statements include estimates and statements
that describe the Company’s future plans, objectives or goals,
including words to the effect that the Company, or management,
expects a stated condition or result to occur. Forward looking
information in this news release includes, but is not limited to,
anticipated growth of the resource through exploration drilling,
the timing and extent of the drill program.
Figure 1:
Plan View of San Diego Project Outlining Four Key
Exploration Zones is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c0335b39-a002-40f0-bae4-7d3ac2c9fe8d
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