Canada markets closed

Minaurum Acquires Historical Drilling Data Revealing High-Grade Extensions of Past Producing Mines at the Alamos Project; Schedules Webcast to Discuss

Newsfile Corp.

Vancouver, British Columbia--(Newsfile Corp. - February 6, 2020) - Minaurum Gold Inc., (TSXV: MGG) ("Minaurum") is pleased to announce that it has acquired historical data including mine maps, sections and results of 40 holes (6,099 m) drilled in multiple surface and underground exploration campaigns that occurred from the 1960s through the early 1980s at its Alamos silver project in Sonora, Mexico. The exploration programs were focused on the historic Promontorio and Minas Nuevas underground mines that closed in 1898 and 1912. The majority of these historic holes cut broad widths of high-grade silver, the best include: Hole U-3 that cut 4.6 m grading 2,838 g/t (82.8 oz/t) silver and Hole U-5 that cut 11.3 m of 785 g/t (22.9 oz/t) silver. The drill results indicate that the historically mined deposits included multiple veins and continue at depth both down plunge and along-strike. At Promontorio, drill holes intersected mineralization over 50 m below the historic mining level and indicate an aggregate 735 m strike length of mineralization. It is estimated that 200 million ounces of silver were mined from the Quintera, Promontorio and Minas Nuevas mines.

"Minaurum's Phase I drilling demonstrated the district-scale potential for high-grade veins at Alamos. The acquisition of this data adds another dimension to the project by providing low-to-no-cost geologic answers for areas that Minaurum would otherwise have had to drill, while revealing high-potential targets for immediate drilling around the old mines," stated Darrell Rader, President and CEO of Minaurum Gold. "These new targets will be added to our large inventory of targets that will be further delineated and expanded upon by our Phase II drill program. Beyond the technical value of the data, we also regard the fact that they were presented to us by a local resident as affirmation of our focus on operating in a socially and environmentally responsible manner in the Alamos community."

Drill highlights from the Promontorio mine include: (only silver and gold were assayed - widths are reported drill thickness)

  • 1.2 m of 5,588 g/t Ag (Hole U-1)
  • 1.2 m of 1,008 g/t Ag (Hole U -1)
  • 4.6 m of 2,838 g/t Ag (Hole U-3)
  • 4.6 m of 305 g/t Ag (Hole U-4)
  • 1.4 m of 377 g/t Ag (Hole U-4)
  • 12.2 m of 710 g/t Ag (Hole U-4)
  • 7.6 m of 747 g/t Ag (Hole U-5)
  • 11.3 m of 785 g/t Ag (Hole U-5)
  • 1 m of 2,177 g/t Ag (Hole U-12)
  • 1.2 m of 854 g/t Ag and 23 g/t Au (2,845 g/t AgEq*) (Hole U-15)

Drill highlights from the Minas Nuevas mine include: (only silver was assayed - widths are reported drill thickness)

  • 1.7 m of 452 g/t Ag (Hole TP-80-08)
  • 2 m of 367 g/t Ag (Hole TP-80-09)
  • 1.8 m of 839 g/t Ag (Hole TZ-80-01)

*Ag Equivalent value was derived using silver price of $17.99 and gold price of $1,557.10 (Kitco, 15 January 2020).

Table 1. Summary of historical drilling, Alamos Project. Drilling totaled 6,099.4 metres in 40 holes.

Vein zone Vein target Number
of Holes
Surface or UG Meters Company Year
Promontorio Veta Guijas 4 Underground 374.00 Alamos Mining Co. 1961
Promontorio V. Grande,
Veta del 100
11 Underground 551.50 Alamos Mining Co. 1961
Promontorio V. Grande,
V. del 100
6 Underground 307.60 Alamos Mining Co. 1966
Minas Nuevas Zambona N vein 7 Surface 2,022.80 Minera Minas Nuevas 1979-1981
Minas Nuevas Purisima vein,
E and W
6 Surface 1,941.40 Minera Minas Nuevas 1980
Minas Nuevas Zambona vein 2 Surface 609.60 Minera Minas Nuevas 1981
San Jose La Huerta
(north ext San Jose zone)
4 Surface 292.60 Minera Minas Nuevas 1981

 

Promontorio Mine

At Promontorio, 17th- to late 19th-century mining exploited three principal veins, Veta Guijas, Veta Grande, and Veta del 100 (Figure 1), first by Spanish and Mexican miners and later by the British Promontorio Mining Company in the 1870s-1890s. Reports indicate that the operations focused on high-grading the veins and spent little on development which explains the considerable amount of un-mined mineralization left behind and intersected in a number of subsequent drill holes. When the higher grade Las Guiijas vein was discovered, work on the Veta Grande and Veta del 100 was abandoned. The Promontorio Mining Company ceased operations in 1896 due to a drop in the silver price.

In the 1950s and 1960s, the Alamos Mining Company rehabilitated the Promontorio mine and carried out an underground drilling campaign. Highlights from this program (Table 2) show that significant high-grade silver intervals were drilled below the mine workings on all three of the principal veins at Promontorio. These historical reports also suggest the existence of another blind, undeveloped vein lying to the west of the Veta del 100.

Table 2. Highlights of Alamos Mining Co. 1961 underground drilling program in the Promontorio mine. Note high-grade intercepts below stope levels. Intervals are drilled thickness. Only silver and gold were assayed.

Hole Meters g/t Ag g/t Au Comment Vein Area
From To Interval
U-1 71.9 73.2 1.2 5,588

Veta Grande
90.8 92.0 1.2 189
113.4 114.6 1.2 161
Below historical workings
114.6 115.8 1.2 1,008
U-2 35.7 36.9 1.2 89

36.9 39.9 3.0 103
49.1 50.6 1.5 175
55.0 56.5 1.5 69
56.5 58.2 1.7 233
U-3 6.1 18.9 12.8 1,139

Between Veta Grande and Veta del 100
including
6.1 10.7 4.6 2,838
25.0 30.5 5.5 185
35.1 39.3 4.3 141
U-4 0.0 4.6 4.6 305
Below historical workings
67.1 68.4 1.4 377
72.5 84.7 12.2 710
including
72.5 76.2 3.7 823
and
76.2 80.2 4.0 1,111
U-5 7.9 15.5 7.6 747

18.6 29.9 11.3 785
U-7 62.5 65.2 2.7 274
Below historical workings Tirito/Guijas
102.4 105.5 3.0 41
U-8 80.5 82.6 2.1 247
U-12 26.8 27.7 0.9 2,177

Veta del 100
27.7 29.0 1.2 103
40.2 41.8 1.5 41
U-15 5.2 6.4 1.2 854 23
U-16 23.8 25.3 1.5 219
Below historical workings Veta Grande

 

Table 3. Highlights of Minaurum drilling in Promontorio vein zone.

Hole From
(m)
To
(m)
Interval (m) Ag (g/t) Au (ppb) Cu (%) Pb (%) Zn (%) Area
AL17-004 81.9 102.05 20.15 154 234 0.50 2.30 6.80 Veta del 100 - Veta Grande
including
84.1 85.7 1.6 236 697 0.50 11.80 20.00
AL17-005 124 132.5 8.5 81 129 0.14 3.23 2.72
including
126.05 128.8 2.75 127 275 0.15 8.91 5.26
135.35 138.5 3.15 296 235 0.62 0.62 2.42
including
135.35 136.35 1 557 208 0.65 0.77 2.17
AL19-023 0.00 12.25 12.25 122 23 0.21 0.21 1.42 Immediate Footwall Las Guijas
including
0.00 7.85 7.85 141 34 0.29 0.31 1.82
AL19-025 463.25 474.1 10.85 154 986 0.52 2.68 4.42 Veta Las Guijas
including
463.85 467.65 3.8 415 2676 1.37 6.20 9.19
including
463.85 464.8 0.95 1566 6719 4.48 9.27 10.08
AL19-034 234.15 235.25 1.1 729 1730 0.13 3.05 5.73

 



Figure 1. Promontorio Mine and vein zone, showing Minaurum drill holes, and 1960s underground drilling. Note that holes AL19-021 and AL19-023 collared in the immediate footwall of the Las Guijas vein and tested its footwall.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_003full.jpg



Figure 2. Veta Grande and Veta del 100 area, Promontorio vein zone, showing plan projections of underground workings, Minaurum drill holes, and 1960s underground drilling. Workings on the veins were originally accessed by shafts and later connected by the 1,200-m long Promontorio haulage tunnel. Longitudinal sections indicate that stoping on the Veta Grande and Veta del 100 extended to about 470 metres elevation, about 230 metres below the surface (Figures 3 and 4).

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_004full.jpg



Figure 3. Veta Guijas, Promontorio mine and vein zone, showing plan projections of underground workings, Minaurum drill holes, and 1960s underground drilling.

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_005full.jpg



Figure 4. Longitudinal section of the Veta Grande - Veta del 100, Promontorio vein zone, looking west-northwest. Note the high-grade silver historical intercepts below the mined-out area. Intercepts are drilled thicknesses. Minaurum holes AL17-004 and -005 cut mineralization in the southern periphery of the stope. Ag Equivalent values are for comparison purposes only and are based on the metal prices of 15 January 2020: Ag: $17.99/oz, Au: $1,557.10/oz, Cu: $2.81/lb, Pb: $0.89/lb, Zn: $1.08/lb (Kitco).

To view an enhanced version of Figure 4, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_006full.jpg



Figure 5. Longitudinal section of the Veta Grande - Veta del 100, Promontorio vein zone, looking east-southeast. Note the high-grade silver historical intercepts below the mined-out area. Intercepts are drilled thicknesses. Minaurum holes AL17-004 and -005 cut mineralization in the southern periphery of the mined-area.

To view an enhanced version of Figure 5, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_007full.jpg

Minas Nuevas Mine: Zambona, Zambona North, Purísima, and Lamas veins

Prospectors discovered the Zambona and Purísima veins, in the Minas Nuevas zone, in the early18th century and the veins were worked most intensively from about 1890 to 1912, when a drop in the price of silver and the Mexican Revolution halted mining. After reviewing mine maps and sections, Compañía Minera de Minas Nuevas drilled 15 core holes totaling 4,753.8 m from 1979 to 1982 on the veins, looking for extensions to ore bodies (Table 1).

Four separate veins were known from old records: Purísima, Lamas, and Zambona. The Purísima vein has a steep northwesterly plunge was worked extensively to the 300 ft (90 m) level, while the Purísima East, or Lamas, vein, about 70 m to the east of the Purísima vein, was worked to shallower depths. The Zambona vein strikes northwesterly and forms a northwest-plunging shoot; it was worked to about the 500 ft (150 m) level.

The Zambona North vein was discovered by drilling and appears to have significant potential at depths greater than those mined in the nearby Zambona vein. Hole TZ-80-01 intersected 1.8 metres assaying 839 g/t Ag from 258.0 to 259.8 m. Significant high-grade intervals were cut below the mine workings on each of the veins at Minas Nuevas.

Table 4. Highlights of Compañía Minera de Minas Nuevas (Terra Mines Ltd.) drilling in Minas Nuevas area. Only silver was assayed.

Hole From
(m)
To
(m)
Interval
(m)
g/t Ag Vein Comments
TP-80-05 125.50 125.60 0.10 389

175.80 176.10 0.30 511

196.50 196.80 0.30 471

237.80 238.50 0.70 229 Lamas Below Old Workings
283.90 284.50 0.60 99 Lamas Below Old Workings
TP-80-07 234.80 236.20 1.40 168 Purisima
TP-80-08 297.80 299.50 1.70 452 Lamas Below Old Workings
TP-80-09 199.20 201.20 2.00 367 Purisima Below Old Workings
275.50 276.20 0.70 162 Lamas Below Old Workings
TZ-80-01 256.00 258.00 2.00 215 Zambona N New Vein
258.00 259.80 1.80 839 Zambona N New Vein
TZ-80-04 291.50 291.90 0.40 337 Zambona N New Vein

 

Historical drilling data are incomplete and the locations of the drill collars at Minas Nuevas have not yet been determined. However, drill intersections are plotted on longitudinal sections in the Terra Mines Ltd. report (Figures 6-8). Minaurum drilled 3 holes in the Minas Nuevas vein zone, under and to the south of the Purísima mine workings (Table 5).

Table 5. Highlights of Minaurum drilling in Minas Nuevas area.

Hole From (m) To (m) Interval (m) Ag g/t
AL17-001 71.95 89.60 17.65 95.9
including
71.95 73.50 1.55 155
77.00 78.00 1.00 150
80.45 81.45 1.00 279
84.45 85.75 1.30 172
86.55 89.60 3.05 110.1
AL17-002 76.25 89.30 13.05 53.7
including
85.40 86.90 1.50 181
155.55 159.00 3.45 68.1
including
158.55 159.00 0.45 156.3

 



Figure 6. Long section of Lamas vein, showing Purísima workings (70 m behind section), drill intersections in undeveloped Lamas vein, and possible mineralized shoot (Terra Mines 1982 report).

To view an enhanced version of Figure 6, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_008full.jpg



Figure 7. Longitudinal section of Purísima vein and mine workings. Note possible mineralized shoot below old workings intersected by hole TP80-09 (Terra Mines 1982 report).

To view an enhanced version of Figure 7, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_009full.jpg



Figure 8. Longitudinal section of Zambona North vein (blind discovery) showing drill intersections (Terra Mines 1982 report).

To view an enhanced version of Figure 8, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_010full.jpg

San José vein zone

Compañía Minera de Minas Nuevas drilled four holes totaling 292.6 m in the La Huerta area, at the northern extension of the San José zone, at least 200 metres north of Minaurum hole AL18-015 that returned 9.6m of 198 g/t Ag. Highlights of the La Huerta drilling are given in Table 6.

Table 6. Mineralized intercepts from 1981 La Huerta drilling.

Hole From (m) To (m) Interval (m) Ag g/t Au g/t
LHU81-24 54.7 56.2 1.5 100
LHU81-24 56.2 57.8 1.5 385
LHU81-29 38.3 38.9 0.6 266
LHU81-30 28.9 30.4 1.5 <1 12

 



Figure 9. Alamos project, vein zones with recently acquired historical data.

To view an enhanced version of Figure 9, please visit:
https://orders.newsfilecorp.com/files/3455/52219_7e6b674bb433d823_011full.jpg

Conference Call and Webcast

Minaurum Gold Inc. will hold a webcast on February 7, 2020 at 5am PT / 8am ET with Dr. Peter Megaw (Co-Founder, Director), Darrell Rader (CEO) and Stephen Maynard (VP Exploration) to discuss the results of the Phase I exploration program, the newly acquired historical data and plans for Phase II exploration at the Alamos Silver project. This will be followed by a question and answer period. Participants may dial in using the numbers below with the access code. Participants please dial in 5 to 10 minutes prior to the scheduled start time.

Toll free Canada/US: 1-800-309-1256

International: +1-604-449-6064

Access Code: 164629

Click here to login to the webcast

A recording of the webinar will be posted to the Company's website following the live broadcast.

Minaurum Gold Inc. (TSXV: MGG) (OTCQX: MMRGF) (FSE: 78M) is a Mexico-focused explorer concentrating on the high-grade Alamos Silver Project in southern Sonora. With a property portfolio encompassing multiple additional district-scale projects, Minaurum is managed by one of the strongest technical and finance teams in Mexico. Minaurum's goal is to continue its founders' legacy of creating shareholder value by making district-scale mineral discoveries and executing accretive mining transactions. For more information, please visit our website at www.minaurum.com and our YouTube Minaurum Video Channel.

ON BEHALF OF THE BOARD
"Darrell A. Rader"

Darrell A. Rader
President and CEO

For more information, please contact:
Sunny Pannu - Investor Relations Manager
(778) 330 0994 or via email at pannu@minaurum.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

2300 - 1177 West Hastings Street
Vancouver, BC V6E 2K3

Telephone 778 330-0994
www.minaurum.com
info@minaurum.com

Stephen R. Maynard, Vice President of Exploration of Minaurum and a Qualified Person as defined by National Instrument 43-101, reviewed the assay data, and has approved the disclosure in this News Release. The data presented in this news release is historical and will require verification.

Cautionary Note Regarding Forward Looking Statements: Certain disclosures in this release constitute forward-looking information. In making the forward-looking statements in this release, Minaurum has applied certain factors and assumptions that are based on Minaurum' s current beliefs as well as assumptions made by and information currently available to Minaurum. Although Minaurum considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Minaurum does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52219