- Los Filos Mine
Leagold Reports Initial Drilling Results for Bermejal Underground Program
Vancouver, July 13, 2017 - Leagold Mining Corporation (TSX-V: LMC) ("Leagold" or the "Company") is pleased to report drilling results for the first 20 holes of its infill and step-out exploration program at the Bermejal Underground deposit at the Los Filos Mine. Highlights from this program include 7.2 grams per tonne ("gpt") over 18.8 metres, 6.8 gpt over 13.3 metres and 26.3 gpt over 2.0 metres (all capped grades and true widths; see Table 1) from the oxide zone of the Bermejal Underground deposit.
Neil Woodyer, CEO stated "these drilling results show the consistency of mineralization along the contacts of the Bermejal intrusive and sill. Infill holes are tightening up the drill hole spacing and will enable an upgrade of the resource classification. These holes are also filling in gaps in the resource model which, when combined with the step-out holes, will increase the overall mineral resource. To date, 18 of the 20 holes drilled have intercepted high-grade mineralization - this high success rate also indicates the potential for both the consistency and expansion of the deposit. In addition to the drilling program, Leagold is also progressing with engineering studies in preparation for underground development. Work to date confirms that Bermejal is a valuable mine development project that will enhance production and extend mine life at Los Filos".
Over 12,900 metres (23%) of the 56,000 metre Bermejal Underground program have been completed. A total of eight diamond drill rigs and two reverse circulation drill rigs are on site. The program will be completed within 2017 and these drill hole results will be incorporated in an updated resource estimate.
Assays were also received for a geotechnical hole (BDG-04-16) that was drilled in 2016 into the oxide zone below the intersection between the sill and the Bermejal intrusive contact (a "sub-sill" deposit). The assaying of this hole was delayed until additional geotechnical testwork was completed. Intervals in this hole include 26.3 gpt over 2.0 metres and 10.7 gpt over 7.8 metres (Table 1), providing further confirmation of the high-grade nature of the lower portion of the Bermejal Underground deposit.
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 iron-oxide gold skarn mineralization at Bermejal is similar to ore currently being mined at Los Filos Underground. Mineralization is along contacts between the intrusive and carbonate host rock and step-out drilling provides extensive opportunities for identification and delineation of additional resources (Figures 2 and 3). The mineralization in the Bermejal Underground deposit remains open in several directions.
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
Only Intercepts with 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 Northwest Showing Step-Out Drilling in Bermejal Underground Deposit
Figure 3: Cross Section B-B’ Facing Northwest Showing Infill and Step-out Drilling in Bermejal Underground Deposit
All holes intersected iron-oxide skarn mineralization as targeted and only two holes were below the 3 gpt over 3 m diluted minimum width threshold for reporting.
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 Venture Exchange 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 receipt of all necessary approvals for conversion of the Orion Subscription Receipts; 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.