Touchstone Gold Limited Reports Corporate Review and Upcoming Exploration Plans at Its Segovia Gold Project in Colombia
TORONTO, ONTARIO -- (Marketwire) -- 02/07/13 -- Touchstone Gold Limited (TSX: TCH)(AIM: TGL) ("Touchstone Gold" or the "Company") is pleased to provide a review of the Company's activities up to December 31, 2012 and provide an update on its upcoming exploration plans for its Segovia Gold Project in Colombia.
Highlights:
-- Listing on the Toronto Stock Exchange
-- Completion of C$5.5 million financing
-- Acquisitions of El Cinco property and business combination with Atlantis
Gold Mines Corp, resulting in a 24,699-hectare concession land package
in the highly prospective Segovia gold belt
-- Successful Stage 3 drilling programme
-- doubled the area of known gold mineralization
-- discovered multiple additional high-grade gold areas within the Rio
Pescado zone
-- Stage 4 drilling programme to commence Q1 2013
-- focus on expanding the areas of known gold mineralization and
testing advanced targets
-- maiden NI 43-101 resource estimate on the Rio Pescado zone expected
following drilling programme
David Wiley, Touchstone Gold CEO, commented, "We are very pleased to look back on a successful and productive 2012, which brought us closer to our aim to grow Touchstone into a significant gold exploration and production group. From an exploration perspective, we released some very positive high-grade drill results which effectively doubled the known area of mineralisation at our project and on the corporate side we grew the scale of our assets substantially through two key acquisitions. We also undertook an initiative to improve the visibility of the company and liquidity for our shareholders through a dual listing on the TSX. With a successful financing in December, we are well funded to begin our Stage 4 drilling programme in the first quarter of this year and we look forward to more success in 2013."
Listing on the TSX
On December 12, 2012, Touchstone Gold commenced trading on the Toronto Stock Exchange under the symbol "TCH". The Company retains its listing on the AIM market of the London Stock Exchange under the symbol "TGL".
Financing
On December 6, 2012, the Company announced the closing of its C$5.5 million financing, through the issue of 34,427,500 units (the "Units") at a price of 10 pence (or C$0.16), each Unit consisting of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder thereof to acquire on common share of Touchstone Gold at an exercise price of 15 pence per share until December 6, 2014.
Acquisitions
Following the acquisition of the El Cinco property, completed on November 5, 2012, and a business combination with Atlantis Gold Mines Corp. completed on September 11, 2012, Touchstone currently holds a 24,699-hectare concession land package (Figure 1). The asset consists of the advanced Rio Pescado property and the highly prospective San Miguel, Frontino Norte and El Cinco properties, collectively called Touchstone's "Segovia Gold Project" and hosts high-grade near-surface gold mineralization along an 800-metre strike length and multiple high-grade gold target zones (the "Project"). The Project boasts more than 15 km of prospective strike length in gold mineralization and encouraging drill results with significant high-grade intersections (Table 1).
Exploration Activities
Completed Programmes:
To date, Touchstone has drilled over 15,000 metres over 193 drill holes at its Segovia Gold Project, of which 8,300 metres in 74 diamond drill holes were drilled at the Project's Rio Pescado zone from June 2011 to March 2012. Touchstone's Stage 3 drilling programme, soil sampling and geophysics successfully doubled the area of known gold mineralization and discovered multiple additional high-grade gold areas within the Rio Pescado zone (Figures 2 and 3). Highlights from the Company's drilling programme can be found in Table 1 below.
Table 1 - Highlights from Drilling at Segovia Gold Project
----------------------------------------------------------------------------
Intersection (metres)
---------------------------------------------
Drill Hole Gold Grade
Number From To Width (g/t Au)
----------------------------------------------------------------------------
LPD - 1279 56.45 84.70 28.25 8.75
----------------------------------------------------------------------------
LPD - 1286 6.10 22.90 16.80 8.70
----------------------------------------------------------------------------
LPD - 1162 48.35 56.70 15.00 9.13
----------------------------------------------------------------------------
LPD - 1159 45.25 68.50 21.75 5.84
----------------------------------------------------------------------------
LPD - 1124 10.60 19.00 8.40 14.07
----------------------------------------------------------------------------
LPD - 1157 0.00 23.20 23.20 4.03
----------------------------------------------------------------------------
LPD - 1273 30.50 39.90 9.40 9.04
----------------------------------------------------------------------------
LPD - 1281 21.30 39.20 17.90 4.29
----------------------------------------------------------------------------
LPD - 1165 42.40 57.05 14.65 4.24
----------------------------------------------------------------------------
LPD - 1131 67.60 70.00 3.40 17.58
----------------------------------------------------------------------------
Upcoming Programmes
Following its successful exploration and drilling programmes to date, Touchstone will continue to explore the various mineralized zones located on the Segovia Gold Project. The initial 15,000 metres of the Stage 4 infill and step-out drilling programme is scheduled to commence in Q1 2013 and will focus on expanding the areas of known gold mineralization and testing advanced targets (Figures 4 and 5). The Company plans to initiate a maiden NI 43-101 resource estimate on the Rio Pescado zone upon receiving assay results from its Stage 4 drill programme.
Less than 5% of Touchstone's 24,699-hectare concession has been drilled to date. The Company intends to drill other identified exploration targets at the San Miguel property in the latter part of 2013 to assess their mineralization potential. Additionally, the Company intends to conduct ongoing geological mapping, geochemical sampling, and geophysics on its concessions to identify new drill targets.
Over a longer term, Touchstone aims to grow into a significant low cost, high-grade gold exploration and production group in the highly prospective Segovia Gold Belt of Colombia.
FIGURES:
To view "Figure 1 - Growth of Touchstone's Segovia Gold Project Concession," please visit the following link: http://media3.marketwire.com/docs/851771FIG1.pdf.
To view "Figure 2 - Plan View of Segovia Gold Project Showing Drilling and Targets in Rio Pescado Target Zone," please visit the following link: http://media3.marketwire.com/docs/851771FIG2.pdf.
To view "Figure 3 - AB Long Section Showing 400 of 800-Metre Strike Length of Mineralization," please visit the following link: http://media3.marketwire.com/docs/851771FIG3.pdf.
To view "Figure 4 - Plan View of Segovia Gold Project," please visit the following link: http://media3.marketwire.com/docs/851771FIG4.pdf.
To view "Figure 5 - Initial Stage 4 Drilling Targets," please visit the following link: http://media3.marketwire.com/docs/851771FIG5.pdf.
TECHNICAL INFORMATION
John Nicholson, Chief Geologist of Touchstone Gold Limited, is a qualified person as defined by National Instrument 43-101 and prepared or reviewed the preparation of the scientific and technical information in this news release with respect to the assay results from the drilling program. Mr. Nicholson has a B.Sc. from the University of British Columbia, is a Fellow of the Royal Geographical Society and has been an accredited member of the Association of Professional Engineers and Geoscientists since 1992. Mr. Nicholson has verified the data disclosed in this release, including the sampling, analytical and test data underlying the information presented. Verification included a review and validation of the applicable assay databases and reviews of assay certificates.
The core samples were split by diamond saw, and half of the core was sampled. Core samples were prepared by Acme Analytical Laboratories ("ACME") in Medellin and were assayed at ACME in Vancouver, British Columbia. All samples then undergo analyses by method 1Dx2 where a 15 g split is leached in hot Aqua Regia and then analyzed by ICP-MS for 36 elements including Au. The larger 15 g split of the samples was chosen in order to give a more representative analysis of elements subject to nugget effect (e.g. Au). Method G601, 30 g lead collection fire assay, was performed on analyzed drill core samples with greater than 5 g/t Au from the ICP analyses. An automatic over limit analysis (G6Gr), 30 g lead collection fire assay with gravimetric finish, was performed on assayed drill core with greater than 10 g/t Au from the 30 g fire assay. Blank, standard and duplicate samples were routinely inserted for quality assurance and quality control.
ABOUT TOUCHSTONE GOLD
Touchstone Gold Limited (TSX: TCH)(AIM: TGL) is a gold exploration company and its primary assets, which collectively comprise its Segovia Gold Project, are the Rio Pescado, San Miguel, and Frontino Norte properties along the Segovia-Remedios Gold Belt in Colombia. Rio Pescado is comprised of four mining concessions, the San Miguel property is comprised of one mining concession and one proposed mining concession, and the Frontino Norte property is comprised of four mining concessions and one proposed mining concession. Touchstone owns further options on the Santa Rosa Project, in the South Bolivar area of Colombia, comprised of four proposed mining concessions and one mining concession. With a philosophy of creating value by the systematic exploration and development of Touchstone's existing assets as well as the acquisition of suitable exploration and development mineral projects, Touchstone's long-term intention is to build a significant gold exploration and production company.
For additional technical information on the Rio Pescado Deposit, please refer to the Company's technical report (the "Technical Report") entitled "Technical Report on The Rio Pescado Gold Property, Republic of Colombia" dated June 30, 2012, prepared by Peter A. Christopher PhD., P.Eng. of PAC Geological Consulting available on SEDAR at www.sedar.com and on the Company website at www.touchstonegold.com.
Cautionary Note Regarding Forward-Looking Information
Certain information set forth in this press release contains "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information which includes the completion of the Acquisition, the drill program and management's assessment of Touchstone's future plans and operations and are based on Touchstone's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking information may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking information may necessarily involve known and unknown risks and uncertainties, which may cause Touchstone's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological, mining and processing technical problems; Touchstone's inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of resources and reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events which could disrupt exploration and development, including labour stoppages and severe weather conditions; and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Touchstone undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
Contacts:
Touchstone Gold Limited
Elina Chow
VP, Investor Relations
+1.416.845.8495
info@touchstonegold.com
www.touchstonegold.com
Canaccord Genuity Limited
(Joint Broker and Nominated Adviser)
Andrew Chubb
+44 20 7523 8350
Canaccord Genuity Limited
(Joint Broker and Nominated Adviser)
Adam Miller
+44 20 7523 8350
Northland Capital Partners Limited (Joint Corporate Broker)
Gavin Burnell
+44 20 7796 8800
Northland Capital Partners Limited (Joint Corporate Broker)
Edward Hutton
+44 20 7796 8800
Northland Capital Partners Limited (Joint Corporate Broker)
John-Henry Wicks
+44 20 7796 8800
College Group
David Simonson
+44 20 7457 2020
College Group
Anca Spiridon
+44 20 7457 2020