San Marco Intersects 3.55 Metres Grading 3.93 g/t Gold and 63.00 g/t Silver (5.18 g/t AuEq) at Angeles
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/23/13 -- San Marco Resources Inc. ("San Marco" or "the Company") (TSX VENTURE: SMN) is pleased to announce the results of the first 7 drill holes of the Company's maiden exploration drill campaign, at the Angeles property in northern Sonora state, Mexico.
Exploration at Angeles commenced during the summer of 2012, and resulted in discovery of the mineralized Angeles fault structure over approximately 3,000 metres of strike length. Assay results of surface sampling and from historic underground workings have been previously disclosed by the Company.
Drilling was initiated at the Bonanza zone in April, 2013, where 7 planned holes have now been completed. All drill holes intersected the main Angeles structure and contain gold, silver, copper, lead and zinc mineralization. Of particular note, drill holes AD13-03 and AD13-07 are the deepest down dip intersections below surface (about 160 metres), and exhibit the most intense host rock brecciation, hematitization, crackle breccia and silicification, corresponding to the highest gold, silver and base metal grades.
Highlights of assays from the Bonanza zone drilling include the following:
Hole AD13-07 - Section C
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
166.2 169.7 3.5 3.93 63.00 5.18 0.74 1.22 0.63 1.84
Including:
166.2 168.7 2.5 5.50 85.80 7.21 1.04 1.68 0.87 2.55
167.1 168.7 1.6 8.17 120.20 10.58 1.57 2.58 0.88 3.46
Hole AD13-03 - Section A
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
146.0 152.2 6.2 2.81 63.77 4.09 0.55 1.16 0.90 2.06
Including:
147.0 152.2 5.2 3.33 71.76 4.77 0.65 1.36 0.95 2.31
147.0 148.2 1.2 7.38 141.00 10.20 0.64 2.50 1.92 4.42
Hole AD13-05 - Section B
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
81.5 86.0 4.5 2.23 49.24 3.21 0.64 1.50 0.49 1.99
Including:
81.5 84.0 2.5 3.12 74.51 4.61 0.93 2.51 0.44 2.95
82.7 84.0 1.3 4.64 126.22 7.17 1.47 4.03 0.34 4.37
Hole AD13-04 - Section B
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
131.6 132.7 1.1 (i) 2.67 144.00 5.55 0.46 0.37 0.67 1.04
(i) 0.70 metres of fault gouge next to this interval was not recovered, due
to drill circulation water washing.
The Company's CEO, Bob Willis, stated "Our initial drilling at the Bonanza zone has resulted in all holes containing significant gold, silver, copper, lead and zinc mineralization. In addition the consistency of the Angeles structure, identified over a 3,000 metre strike length, and thus far maintaining a 55 - 60 degree dip at the Bonanza zone, improves our confidence in the potential for expanding the mineralization along strike and to depth. Results from our collective work to date at Angeles is encouraging and may lead San Marco to achieve its goal of defining a high margin deposit, with very favorable infrastructure in a mining friendly jurisdiction."
Drilling at La Bonanza has been designed to intersect the Angeles structure perpendicular to the assumed strike length of the principal trend of mineralization. All holes were drilled at an azimuth of 20 degrees; holes AD13-03 and AD13-07 at a -73 degree dip and the rest of the holes at -50 degree dip. Drill sections are 50 metres apart, with a minimum down dip separation between holes of 50 metres. Corresponding drill cross sections and a long section can be viewed on the Company's website. These reported drill results have thus far tested 100 metres of the identified 3,000 metres of the Angeles strike length, and approximately 160 metres down dip on the plane of the mineralization.
A complete list of drill hole intercepts is shown in the following table:
Hole AD13-01 - Section A
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
76.5 81.0 4.5 (i) 0.20 8.63 0.37 0.35 0.14 0.07 0.22
Including
76.5 77.5 1.0 0.40 13.00 0.66 1.12 0.16 0.13 0.29
111.8 112.0 0.2 9.62 88.00 11.00 0.71 3.12 0.52 3.64
(i) This interval contains open stoping, and what appears to be caved
material. Overall assays should be considered unreliable for this
interval.
Hole AD13-02 - Section A
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
123.0 124.0 1.0 1.36 12.40 1.60 0.11 0.16 0.12 0.28
130.1 131.1 1.0 0.43 90.00 2.23 0.371 0.816 0.336 1.152
Hole AD13-03 - Section A
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
146.0 152.2 6.2 2.81 63.77 4.09 0.55 1.16 0.90 2.06
Including:
147.0 152.2 5.2 3.33 71.76 4.77 0.65 1.36 0.95 2.31
147.0 149.0 2.0 5.18 94.38 7.07 1.03 1.59 1.27 2.86
147.0 148.2 1.2 7.38 141.00 10.20 0.64 2.50 1.92 4.42
151.0 152.2 1.2 5.46 136.00 8.18 0.73 3.03 1.60 4.63
Hole AD13-04 - Section B
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
131.6 132.7 1.1 (i) 2.67 144.00 5.55 0.46 0.37 0.67 1.04
(i) 0.70 meters of fault gouge next to this interval was not recovered, due
to drill circulation water washing.
Hole AD13-05 - Section B
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
81.5 86.00 4.5 2.23 49.24 3.21 0.64 1.50 0.49 1.99
Including:
81.5 84.00 2.5 3.12 74.51 4.61 0.93 2.51 0.44 2.95
82.7 84.00 1.3 4.64 126.22 7.17 1.47 4.03 0.34 4.37
Hole AD13-06 - Section C
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
86.2 91.3 5.1 0.27 11.91 0.51 0.26 1.01 1.08 2.09
Including
87.9 91.3 3.4 0.35 9.88 0.55 0.38 1.47 1.45 2.92
88.9 89.9 1.1 0.65 17.16 0.99 1.04 3.89 2.00 5.89
88.9 89.4 0.5 0.47 23.60 0.94 1.95 7.61 3.74 11.35
Hole AD13-07 - Section C
Interval % Pb-Zn
From To (metres) Au g/t Ag g/t AuEq Cu % Pb % Zn % Combined
----------------------------------------------------------------------------
166.2 169.7 3.5 3.93 63.00 5.18 0.74 1.22 0.63 1.84
Including:
166.2 168.7 2.5 5.50 85.80 7.21 1.04 1.68 0.87 2.55
167.1 168.7 1.6 8.17 120.20 10.58 1.57 2.58 0.88 3.46
167.6 168.7 1.1 11.02 87.20 12.76 1.39 3.47 0.16 3.63
Notes:
1. A silver to gold ratio of 50:1 was used for AuEq calculations for the
sake of consistency of previous San Marco's news release.
2. Drill intervals reported are down hole intercepts. True widths are yet
to be determined.
3. Metallurgical recoveries and net smelter returns are assumed to be 100%
for these calculations.
4. Copper, lead and zinc values are not included in AuEq calculations.
5. Drill core recovery of the announced mineralized zones is generally
greater than 90%, unless otherwise noted.
Subsequent to completing the above drilling, the rig has moved 1.1 kilometres to the west (along the same Angeles structure), where 4 holes have recently been completed, testing the La Verde zone. Additional drilling is expected to be scheduled at the Bonanza zone testing possible on strike and down dip extensions.
Blanks and certified standards were inserted into the sample stream as part of San Marco's quality assurance and control program, which complies with National Instrument 43-101 requirements. Core samples are split using a hydraulic splitter, with one half retained in secure storage for logging, and the other half sent to ALS Chemex Lab in Hermosillo, Sonora, Mexico. All samples are prepared using the PREP -31 method. 125 gram pulps are sent to ALS Chemex Lab. in Vancouver, B.C. A 30 gram split is analyzed for gold, using the Au-AA23 method. Sample results greater than 10 ppm are re-assayed, using AA23 fire assay and gravimetric finish. For silver, copper, lead and zinc, a multi-element, four acid digestion (ME - ICP 61 is used. For initial assays of silver greater than 100 ppm, copper, lead and zinc greater than 10,000 ppm (over limits), the OG62 method is used for re-analysis.
Exeter Resource Corp. (TSX: XRC) (NYSE MKT: XRA) is currently funding a $1.0 million committed exploration program at Angeles, which is largely related to a planned 2,500 metres of drilling at the La Bonanza and La Verde target areas, pursuant to an agreement whereby it can earn an initial 51% in the Angeles property by staged expenditures totalling $10 million over 4 years and an additional 19%, over the next 3 years, for a total of 70% by spending an additional $10 million in exploration expenditures.
Exeter will also make cash payments, totalling $950,000 staged over 7 years, by way of a private placement purchase of San Marco's common shares at a price equal to a premium of 25% to the 20 day volume weighted average price.
The technical information contained in this press release has been verified, and this news release has been approved, by San Marco's CEO, Robert D. Willis, P. Eng. a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
This news release contains "forward-looking information" and "forward-looking statements" (together, the "forward-looking statements"), which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; changes in government regulations and policies, including trade laws and policies; failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. These forward-looking statements are made as of the date of this news release. San Marco Resources Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contacts:
San Marco Resources Inc.
Rick Peterson
V.P. Corporate Development
604-568-5951 or 604-868-3164
rick@rickpeterson.ca
San Marco Resources Inc.
Robert D. Willis
CEO
604-568-5951 or 604-813-2606
604-568-5971 (FAX)
rwillis@sanmarcocorp.com
www.sanmarcocorp.com