Catalina Gold Corp. Announces Receipt of National Instrument 43-101 Report for Yurani Gold Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 17, 2017) - Catalina Gold Corp. (the "Corporation" or "Catalina") (NEX:CA.H)(TSX VENTURE:CA.H) is pleased to announce receipt of a National Instrument 43-101 technical report entitled "Technical Report on Yurani Gold Project, Remedios, Antioquia Colombia" with respect to the Yurani mineral concession located within the Municipality of Remedios, situated 135 km northeast of Medellin, Colombia. The Yurani concession is comprised of approximately 102 hectares and is recorded with the government of Colombia under concession number P7299011. The Remedios-Segovia district is a prolific region known for its gold mining activities since the 1500's. Regional players such as Gran Colombia have acquired several mining operations, and produced 126,261 ounces of gold from its Segovia operations in 2016 (annual MD&A of Gran Colombia for December 31, 2016).
The San Pablo mine situated within the Yurani concession, over the years, has been developed on 5 levels along the main vein. The San Pablo vein has a width ranging from 20 cm to 1.2 metres. The Yurani concession has the potential to develop further the San Pablo mine both in depth, and along the lateral extensions of the main mineralized structure. Within the concession, additional veins have been identified and are targeted for future exploration.
Between 1995 and 1997, Procoloro Resources Inc., a Canadian company, carried out work on the Yurani property. Diamond drilling (2,404 m) was completed along with the underground development of levels 1 and 2 of the San Pablo vein. Metallurgical testing was also completed by a Canadian laboratory. According to the Technical Report, at that time, 1.3 million tonnes of proven and possible mineralized material (considered as a historical estimate) grading 12 g/T Au have been delineated. Other companies have optioned and operated the San Pablo mine and built a mineral processing plant. As per all the available documents, the quantity of mined mineralized material and the amount of gold recovered has not been reported. The mining operations were halted in 2012, since that time the mine and surface plant has been on care and maintenance. Catalina plans to implement a capital investment program in order to sequentially overhaul and increase the processing capacity of the San Pablo mineral processing plant.
The geological formation underlying the Yurani concession is comprised of granodiorite belonging to the Remedios-Segovia batholith. The mineralisation is essentially associated with gold bearing quartz-sulphide veins found in fractures within the granodiorite. The San Pablo vein has a North-South strike with a 30°-40° E dip.
The Yurani concession is proximal to key infrastructure as the main road from Medellin to Remedios is paved and provides access to the concession. In addition, the Otu airport has a well surfaced landing strip and is situated a few hundred metres from the southwest corner of the Yurani concession.
Pursuant to the Technical Report, a two-phase exploration and development programme has been recommended for the Yurani Concession and the old San Pablo mine located on the same concession. The first phase is expected to consist of land surveying, mapping, metallurgical study, dewatering and rehabilitating the old San Pablo mine, and underground sampling. With all the available data, a 3D computerised model is expected to be completed on the Yurani Project. The second phase is expected to comprise of surface diamond drilling.
The Corporation entered into a letter of intent with OroSur S.A.S. (the Optionor") to acquire up to a 90% interest in the Yurani concession and the recently acquired Yurani Mill as further described in the Corporation's news release dated January 30, 2017.
The scientific and technical data contained in this news release relating to Catalina's mineral properties has been prepared and reviewed by Pierre C. LaBrèque, P.Eng, an independent qualified person for Catalina. Mr. LaBreque, is a "qualified person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. LaBrèque has visited the site and reviewed all data received to date.
The Technical Report respecting the Yurani gold project will be published on the System for Electronic Analysis and Retrieval ("SEDAR") within the 45 days permitted under NI 43-101.
The Corporation is treating the gold tonnage estimate above as a historical estimate. The historical estimate does not use categories that conform to current CIM Definition Standards on Mineral Resources and Mineral Reserves as outlined in NI 43-101 and has not been redefined to conform to current CIM Definition Standards. The historical category of "proven" generally correlates with the current CIM category of "proven", but the historical category of "possible" does not correlate with as much certainty for mineralization as the current CIM category of "probable". A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Corporation is not treating the historical estimate as current mineral resources or mineral reserves. More work, including, but not limited to, drilling and sampling will be required to conform the estimate to current CIM Definition Standards. As further described in the Technical Report the author has relied on information from previously prepared technical reports and other sources for the historical estimate and has had no additional information concerning the assumptions, parameters and methods of calculating the historical estimate referenced in this press release other than those given in the available documents. Investors are cautioned that the historical estimate does not mean or imply that economic deposits exist on the Yurani concession property and the Corporation offers no assurance as to the reliability of the estimate. The Corporation has not undertaken any independent investigation of the historical estimate or other information contained in this press release nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information. The Corporation believes that the historical estimate and other information contained in this press release are relevant to continuing exploration on the Yurani concession. Disclosures of results from nearby properties provide no assurance that the results will be similar for the area of the Yurani Concession.
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 release
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, business plans and strategies of the Corporation, that the Corporation will complete a two phase drilling program on the Yurani Concession, that the parties will receive all required regulatory and exchange approvals, that the Corporation will complete the transactions contemplated in the letter of intent on or before May 19, 2017, the reactivation of the Corporation as a Tier 2 Mining Issuer on the Exchange and the completion of the acquisition of up to a 90% interest in the Yurani Concession. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Such forward-looking statements and information are subject to risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement. Specific risks included that we may not obtain regulatory approval. General risks include risks relating to international operations, fluctuating gold prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of site, equipment or processes to operate as anticipated, acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed or referred to in Catalina's public filings with the securities regulatory authorities in the provinces of Canada and available at www.sedar.com. Although Catalina has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. Other factors which could materially affect such forward-looking information are described in the risk factors in the Corporation's most recent annual management's discussion and analysis that is available on the Corporation's profile on SEDAR at www.sedar.com. The Corporation does not undertake to update any forward-looking information, except in accordance with applicable securities laws.