- Los Filos Mine
Leagold Reports High-Grade Infill Drilling Results From Bermejal Drilling Program
Vancouver, August 31, 2017 – Leagold Mining Corporation (TSX: LMC) (“Leagold” or the “Company”) is pleased to report several high-grade drilling results from Bermejal including 15.5 grams per tonne (“gpt”) over 27.0 metres, 17.4 gpt over 13.3 metres, 8.0 gpt over 20.3 metres and 16.8 gpt over 8.6 metres (all capped grades and true widths; see Table 1). These results are part of 20 holes being reported from the infill and step-out exploration program at the Bermejal Underground deposit at the Los Filos Mine, following the initial 20 holes reported on July 13, 2017.
Neil Woodyer, CEO stated “This second set of holes continue to delineate the broad widths and high grades of the mineralization below the junction of the sill and the Bermejal intrusive. Overall the program has an impressive 90% success rate with 36 of the 40 holes drilled intercepting the key targets.”
Over 25,000 metres (45%) of the 56,000 metre Bermejal Underground program have been completed. A total of 62 of the planned 113 holes have been drilled and, to date 40 holes have been reported, 12 are in progress and the remaining 10 are in the process of sampling or assaying. The entire drilling program is expected to be completed within 2017 and these drill hole results will be incorporated in an updated resource estimate.
Bermejal Underground mineralization extends approximately 1,600 metres along the strike of the intrusive contact and has a vertical depth extent of over 600 metres (Figure 1). The drilling shows consistent oxide mineralization at carbonate/intrusive contacts either along the intrusive contact or below the intersection between the sill and the Bermejal intrusive contact (a “sub-sill” deposit; Figure 2). The mineralization in the Bermejal Underground deposit remains open in several directions.
All holes intersected iron-oxide skarn mineralization as targeted and only two holes (BU-36-17, BU-40-17) were below a 3 gpt over 3 m diluted minimum width threshold.
Bermejal Underground Expansion Project Update
An environmental permit for the mine portal and exploration ramp was completed in July 2017 (see news release dated July 31, 2017). Surface preparation for the portal is currently underway. The ramp will provide access to the eastern and central portions of the deposit and will enable additional exploration, allow collection of material for confirmatory metallurgical testwork for heap leaching, demonstrate the minability of Bermejal Underground, and advance the project towards declaration of reserves.
Table 1: Drilling Program Highlights for Bermejal Underground Deposit
NOTES: Intervals in bold are shown on cross sections or mentioned in the text of the news release
*Drill holes BU-36-17 and BU-40-17 dilute below 3 gpt; all other intercepts are over 3 gpt when diluted to a minimum true width of 3 metres are shown
UC = Upper Contact of Sill; LC = Lower Contact of Sill; Sill = Oxide within Sill; UI = Intrusive Contact above Junction with Sill;
LI = Intrusive Contact below Junction with Sill
Individual assays within the intercepts were capped using 40 gpt limit
Figure 1: Plan View Map of Bermejal Area Showing Geology, Drill Holes Reported and Outline of Bermejal Underground Resource at 1,175 m elevation
Figure 2: Cross Section A-A’ Facing East Showing Step-Out Drilling below the Sill in the Bermejal Underground Deposit
Doug Reddy, P.Geo, Leagold’s Senior Vice President – Technical Services, is a Qualified Person under NI 43-101, and has reviewed and approved the technical contents of this news release on behalf of Leagold.
Los Filos Mine employs industry standard drilling and sampling procedures. All exploration samples are sent to an ALS Global facility in Guadalajara for preparation and Vancouver for analyses by fire assay and ICP. A full quality control and assurance program and protocols are in place and are aligned with best practices including regular insertion of certified reference standards, blanks, and duplicates.
About Leagold Mining Corporation
Leagold is building a new mid-tier gold producer with a focus on opportunities in Latin America. Leagold is based in Vancouver, Canada and is listed on the TSX under the trading symbol “LMC”. The recent acquisition of the Los Filos Mine, a low-cost gold producer in Mexico, provides an excellent platform for growth.
On behalf of Leagold Mining Corporation
Neil Woodyer, Chief Executive Officer
For more information on Leagold please visit the Company website at www.leagold.com or contact:
Doug Reddy, SVP Technical Services
This news release contains "forward-looking statements" and “forward looking information” (as defined under applicable securities laws), including but not limited to plans for future development of the Los Filos Mine. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" and "anticipates". Forward-looking statements and information, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the Los Filos Mine, risks related to the successful integration of the acquisition; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Leagold operates. Although Leagold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward-looking information are made as of the date hereof and Leagold disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information. Please refer to Leagold's most recent filings under its profile at www.sedar.com for further information respecting the risks affecting Leagold and its business.