Golden Tag Resources Ltd. (“
Golden Tag” or the
"
Company") (TSX.V: GOG) is pleased provide an
update on the Company’s strategic opportunities and plans for
growth. As silver prices continue to rebound, the Company’s 100%
owned San Diego Project is well positioned as one of the largest
undeveloped silver projects in Mexico, with significant potential
for resource expansion.
Key Highlights:
- The San Diego Project’s
potential was confirmed by SGS Canada’s view that the 43-101 silver
resources could potentially be expanded based on
existing structures, as well as lateral and depth
extensions – Managements four key high priority targets include the
1849, Fernandez, Trovador, and Arroyo Zones.
- The San Diego project is
fully permitted for drilling. A drill program is being
designed to be implemented as the silver price continues to
recover.
- Opportunities are being
evaluated including mergers, strategic, corporate or direct project
acquisitions in the America’s having a primary
focus on silver.
Greg McKenzie, President and CEO commented,
"Since taking over leadership of the Company in May 2020 we are
pleased to see the share price begin to strengthen, however, we are
excited about the tremendous organic and strategic growth
opportunities and believe that with the ongoing support of our
strong shareholder base Golden Tag is well positioned to capitalize
on the continued rebound in silver prices."
Meaningful Organic Growth at the San
Diego Project
The 100% owned San Diego project, located in the
prolific Velardeña Mining district within Durango, Mexico, is among
the largest undeveloped silver assets in Mexico. This
district, dominated by Peñoles, S.A.B. de C.V., has hosted silver
and base metal mining operations for over 100 years. In 2013,
the Company published a 43-101 resource prepared by SGS Canada, as
outlined in Table 1 below on the San Diego Project. The
resource was based on 33,000 metres of drilling and included
mineralization from 23 different zones with strong lateral and
vertical continuity. The last phase of drilling on the
property was completed in 2012.
Table 1: Summary of Estimated Mineral Resources- San
Diego Project (SGS 2013)
SAN DIEGO RESOURCE ESTIMATE (1) |
CoG (2) |
Tonnes |
Au |
Ag |
Pb |
Zn |
Ag.EQ (3) |
Ag Oz |
(g/t) |
(Mt) |
(g/t) |
(g/t) |
(%) |
(%) |
(g/t) |
(M oz) |
INDICATED RESOURCES |
|
|
|
|
|
|
|
|
Oxide Veins [6] |
133 |
0.31 |
0.43 |
211 |
NA (4) |
NA (4) |
234 |
2.11 |
Sulfide Veins [14] |
52-125 |
1.38 |
0.20 |
123 |
1.23 |
1.85 |
197 |
5.43 |
Fernandez Zone [2] |
52 |
14.8 |
0.06 |
51 |
0.65 |
1.17 |
94 |
24.1 |
TOTAL (5) |
|
16.5 |
|
|
|
|
|
31.6 |
INFERRED RESOURCES |
|
|
|
|
|
|
|
|
Oxide Veins [8] |
133 |
0.29 |
0.43 |
238 |
NA (4) |
NA (4) |
261 |
2.2 |
Sulfide Veins [19] |
52-125 |
13.1 |
0.11 |
93 |
1.41 |
1.83 |
171 |
39.2 |
Fernandez Zone [2] |
52 |
28.7 |
0.05 |
46 |
0.7 |
1.08 |
88 |
42.4 |
TOTAL (5) |
|
42.1 |
|
|
|
|
|
83.8 |
Notes: (1) Please refer to
Table 1, page 3, SGS Canada “NI 43-101 Technical Report: Updated
Mineral Resource Estimate San Diego Project” effective date April
12, 2013 available on www.sedar.com or the Golden Tag Web site
www.goldentag.ca for further information.
(2) CoG: Cut-Off Grade Ag.EQ (g/t); please
refer to Table 31 on page 104 of the report for further
information. (3) Ag.EQ: Silver Equivalent based on
commodity prices of US$1455/oz Au, US$28.10/oz Ag, US$1.00/lb Pb,
US$0.96/lb Zn applying estimated mill recoveries & smelter
deductions & payables of 64.9% Ag, 76.4% Pb & 57.5% Zn for
sulfide and 60.5% Ag & 62.5% Au for oxide resources. Zn and Pb
are excluded from Ag.EQ for oxide resources and Cu and Au are
excluded from Ag.EQ for sulfide resources. Please refer to Table 30
& Pages 103-104 of the report for more information.
(4) Pb and Zn are excluded from oxide vein
resources due to lack of metallurgical tests illustrating their
potential recoveries. (5) Totals may not add up
precisely due to rounding. (6) (Mt): million
tonnes; (M oz): million ounces.
Cautionary Statement: Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability. The resource estimate for the 21 veins and
mineralized body were defined by a drill pattern and applying
reasonable geological shapes to limit the lateral extent of the
veins and mineralized body. Combinations of cross sectional
and plan level views were used in order to develop an understanding
of the structural relationship and cut off grades were
applied. The indicated and inferred categories were partially
based on historic structures that consistently exhibit lateral
continuity and constant thickness, many of which can be traced
along surface for hundreds of metres. There are no known
factors such as environmental, permitting, legal, title, taxation,
socio economic, marketing, political or other relevant factors
which could materially affect the resources.
The San Diego property was originally known for
narrow, high grade Ag veins in surface outcrop and shallow historic
underground mine workings developed to mine oxidized veins. Initial
exploration drilling confirmed the veins extended beneath the oxide
zones as several laterally extensive, high-grade Ag-Pb-Zn sulfide
veins to depths in excess of 400 metres. Drill campaigns in
2011-2012 demonstrated that below 500 metres, vein zones often
widen, in some cases to more than 20 metres. This drilling campaign
also identified broader mineralized zones, associated with
intrusive bodies and hornfels, where massive sulfide, stockwork,
and skarn mineralization and replacement sulfides in limestones
occur in the southern part of the property (Figure 1).
In the 2013 resource report, SGS recognized the
prospective nature of the property and concluded that existing
known mineralized zones, extended laterally and along their dip,
could potentially provide an additional 20-50 million tonnes
grading from 100 to 150 g/t Aq.Eq. It should be noted that the SGS
stated range of potential tonnage and grades are conceptual in
nature and insufficient exploration work has been performed to
define a mineral resource in these areas, and it is uncertain if
further exploration will result in the target being delineated as a
mineral resource. However, the potential to expand the
resource tonnage is a positive organic growth opportunity for the
Company.
The Company’s new management team have reviewed
the historical work performed on the project, including SGS’s
recommendations, and would like to highlight four key drill ready
targets where the existing resources could potentially be expanded
through additional drill programs:
- The 1849 Target
lies at the intersection of the East-West Fault Zone (EWFZ) and
Western Contact Zone (WCON) at the western contact of the central
diorite intrusion on the property approximately 100 metres
northwest of the Fernandez Zone, which is on the eastern contact of
the diorite (Figure 2). This target area is
located east of and within 250 vertical metres between holes
SD-12-49 (20.4 m @ 73 g/t Ag, 1.81% Pb, 0.89% Zn
& 14.9 m @ 72 g/t Ag, 1,86% Pb, 1.94% Zn)(1)
and SD-07-18 (14.5 m @ 82 g/t Ag, 1.78% Pb, 1.94%
Zn & 15.8 m @ 34 g/t Ag, 0.49% Pb, 0.62%
Zn)(1), and along the 350 metre up-dip extension
to surface. Mineralization encountered at the bottom of hole
SD-07-18 is similar to that found within the Fernandez Zone.
Further drilling will be required to confirm the potential of this
target.
- In 2012, the Fernandez
Zone was discovered ~450 metres below surface (1650 Level)
and has been drilled down to a vertical depth of 850 metres below
surface (Figures 2 & 3). This zone is located between two major
structures, offers bulk mining potential, and remains open to the
west, up-dip and at depth. The top of the zone was interpreted by
SGS in 2013 at a vertical depth of 450 metres below surface, but no
drilling has been conducted in this area to verify the upward
extent of the zone. Impressive historical holes within the 43-101
resource include:
- SD-12-47: 212 m @ 54 g/t Ag, 0.48% Pb, 1.28%
Zn(1)
- SD-12-49: 238 m @ 64 g/t Ag, 0.77% Pb, 1.59%
Zn(1)
- SD-12-50A: 257 m @ 66 g/t Ag, 0.74% Pb, 1.69%
Zn(1)
- SD-12-50W2: 186 m @ 53 g/t Ag, 0.56% Pb, 1.20%
Zn(1)
- The Trovador Zone
target is in a 400 x 400 metre area between indicated resources
located 150 m below surface (in proximity to the historical
workings), and above inferred resources estimated in 2013 at depth
(Figure 4). Within this prospective area, inferred resources were
estimated around hole SD-11-42: 7.03 m @ 0.21 g/t
Au, 87.7 g/t Ag, 2.06% Pb, 1.39% Zn (445.50 - 452.53
m)(1). The Trovador Zone is also open along strike
to the west with historical drill intercepts ranging from 7 metres
(SD-12-47: 6.92 m @ 66.9 g/t Ag, 0.9% Pb, and 3.22% Zn:
1004.4-1011.3 m) to over 50 metres (SD-11-40: 56.12 m @ 42.9 g/t
Ag, 0.57% Pb, and 0.77% Zn: 782.1-838.2
m)(1).
- The Arroyo Zone
was discovered in 2007 in hole SD-07-27 (166 g/t
Ag over 4.60 m, including 776 g/t Ag over 0.6 m with 1.55%
Cu)(2). This vein has been traced over a strike
length of 525 metres from the surface to shallow depths with few,
widely spaced drill holes from previous programs and contains near
surface, higher-grade Ag dominant oxide and sulfide mineralization
which warrants further investigation.
Notes: (1) drill intercepts
taken from Tables 12 & 15, pages 58-60 & 68-69 of the April
12, 2013 SGS 43-101 report; drill intercepts do not necessarily
represent true widths. (2) Company news release
dated August 27, 2008.
The Company is fully permitted to resume
drilling at the San Diego Project and is in the process of
designing a drill program, to be implemented as the silver price
continues to recover.
Corporate Development
Opportunities
The Company has commenced evaluating strategic
opportunities to add shareholder value through merger &
acquisitions or by acquiring projects directly. The focus
will be in the America’s having a primary focus on silver.
About Golden Tag Resources
Golden Tag Resources Ltd. is a junior
exploration company exploring for high-grade silver deposits. The
Company holds a 100% interest, subject to a 2% NSR, in the San
Diego property in Durango State, Mexico. The San Diego property is
located within the prolific Velardeña Mining District, the site of
several mines having produced silver, zinc, lead, and gold over the
past century. For more information regarding the San Diego property
please visit our website at www.goldentag.ca. Golden Tag has no
debt and cash balances of approximately $2.1 million.
For additional information, please contact:
Greg McKenzie, President & CEOPh:
416-504-2024Email: greg.mckenzie@goldentag.cawww.goldentag.ca
Qualified Person
The scientific and technical information in this
document has been reviewed and approved by Bruce Robbins, P.Geo., a
Qualified Person as defined by National Instrument 43-101.
Cautionary Statement:
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 news release.
This News Release includes certain
“forward-looking statements” which are not comprised of historical
facts. Forward-looking statements include estimates and statements
that describe the Company’s future plans, objectives or goals,
including words to the effect that the Company, or management,
expects a stated condition or result to occur. Forward looking
information in this news release includes, but is not limited to,
anticipated growth of the resource through exploration drilling,
anticipated project acquisitions or merger/acquisition activities,
the ability to find and acquire new resource mineral projects, and
the ability to fund future drill programs.
Figure 1: Plan View of San Diego Project Outlining Four
Key Exploration
Zoneshttps://www.globenewswire.com/NewsRoom/AttachmentNg/65858160-5ed3-4ebc-8f08-f0fc6f00e276
Figure 2: Cross-section 1849 Target & Fernandez Zone
along hole SD-12-49 (view to
ENE)https://www.globenewswire.com/NewsRoom/AttachmentNg/3c3abcfb-d96f-403c-b906-0c4b7c48efc2
Figure 3: Plan View of Fernandez Zone at 875 m Level –
2012 Drilling
Resultshttps://www.globenewswire.com/NewsRoom/AttachmentNg/a4649e6b-63f3-42f1-8c7a-e55e4e7958a7
Figure 4: Longitudinal Section of Trovador Zone (view
north at
028)https://www.globenewswire.com/NewsRoom/AttachmentNg/9453f35c-547b-4afa-9528-22de82c838d4
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