MONTREAL, June 27, 2016 /PRNewswire/ --
ALGOLD RESOURCES LTD. (TSX-V: ALG) (the "Corporation") today announced results from geological mapping and rock chip sampling on the Tijirit property, where a 10,000-meter reverse-circulation ("RC") drilling program is currently underway.
Between April and June 2016, Algold uncovered a series of quartz veins in trenches and pits on the Eleonore zone. These findings could possibly represent a large stockwork enclosed within a major shear zone, striking for more than 10 km in a north-northeast direction. Based on these new findings as well as on previous work, Algold strongly believes that this area hosts a high-grade gold deposit. This is a completely new high-grade gold occurrence in Mauritania.
- The Eleonore zone now represents a resources target, striking over 3.1 km, with the highest-grade rock chip sample grading 70.8 g/t Au found in the south. This is the highest-grade rock chip ever found on the property to date, not including rock chip samples from the VG bearing veins. (Reference Algold's press release dated June 21, 2016.) (Figure 1)
- The 9.41 g/t Au sample was found approximately 300 m north of the high-grade gold quartz vein depicted in Algold's press release dated May 19, 2016.
- The Eleonore structure is characterized by mineralized quartz veins, which have been identified further north and south of currently know occurrences thus extending the exploration target to more than 10 km.
- A previously little known occurrence named the "Nancy zone" provided the highest-grade banded iron formation ("BIF") rock chip ever found outcropping on the property, at 6.71 g/t Au. Drilling has not yet begun in this area.
Table 1: High Grade Gold Samples
Fire Assay Fire Assay Fire Assay Gravimetric Gravimetric Au-AA24 Au-AA24 Au-AA24 Au-GRA22 Au-GRA22 Au Au Check Au Check 2 Au Au Check Sample (ppm) (ppm) (ppm) (ppm) (ppm) A08306 >10.0 N/A N/A 66.3 70.8 A08451 >10.0 N/A N/A 10.6 20.2 A08452 >10.0 N/A N/A 5.45 10.8 A08453 4.07 3.28 N/A N/A N/A A08467 6.71 5.6 N/A N/A N/A A08477 5.99 8.78 >10.0 9.09 N/A A08486 >10.0 N/A N/A 9.41 8.19 A08498 3.57 3.11 N/A N/A N/A A08499 >10.0 N/A N/A 44.0 48.7
Note: Detailed results of the 68 samples sent for analysis can be found on Algold's website at http://www.Algold.com.
Eleonore Geological Description
The Eleonore zone is comprised of a predominantly westerly-dipping metasediment and volcanic sequence with upper greenschist to lower amphibolite metamorphic assemblages. Gold is hosted in quartz veins striking parallel to local foliation and the regional trends. It is believed to be emplaced relatively early in the tectonic history with veins often displaying a sheeted texture distinguishable from later crosscutting quartz veins. Several families of east-west and north-east trending brittle faults are believed to crosscut the foliation and offset geological units and mineralisation. Initial results suggest that the area is extremely rich with coarse, nugget-type gold.
Additionally, Algold's continuous success in identifying gold-mineralised veins throughout the 10-kilometer strike of the Eleonore zone further enhances its strategic importance within the context of being a potential host to a high-grade gold deposit on Tijirit.
SGS Geostat Targeting
Previous exploration work on the Tijirit property has resulted in a very rich and diverse database of geological observations, geophysics, geochemistry and structural data. Algold commissioned SGS Geostat to compile and leverage this data to outline the most prospective drill targets. To enable an unbiased and geologically driven targeting strategy, the team built a framework within which all available information and interpretations were integrated, interpolated and extrapolated. Once the key mineralization vectors were identified and vetted through literature research, the data was driven into a block model covering the property. Each of the data inputs were weighted based on their ore vectoring potential and assessed with several separate formulas to generate separate prospectivity scores.
The style of gold mineralisation varies on the Tijirit project, however, two major types have been identified as unique: Eleonore-type mineralization and BIFs type. Accordingly, separate prospectivity scores were defined. An additional Academic Prospectivity Score was also generated to incorporate vectors that would normally be associated with gold mineralisation in the region. In parallel to this weight of evidence approach, the data is being processed with an advanced machine learning algorithm to assist in identifying novel targets. Figure 2 displays the preliminary Machine Learning Algorithm (Machine Score) results with an overlay of the high Eleonore Prospectivity (EP) Scores in white blocks.
This targeting will assist Algold in its next round of drilling to focus on highly prospective areas on the property that have not previously been explored. As such, an area that was previously relatively unexplored for gold mineralization in the southern part of Tijirit display very high prospectivity scores for Eleanore-type gold mineralization and follow up is intended during the next round of drilling.
Quality Assurance / Quality Control (QA/QC)
Analytical work for soil geochemical samples and rock chips samples is being carried out at the independent ALS Laboratories Ltd. in Loughrea, Co. Galway, Ireland, an ISO 17025 (2005) certified laboratory. Samples are stored at Algold's field camps and put into sealed bags until delivered by a geologist to the ALS preparation laboratory in Nouakchott, Mauritania, where samples are sieved and prepared for shipping. Until the end of 2015, samples were analysed at ALS' facility in Bamako, Mali. Since early 2016, samples have been analysed at ALS in Ireland. Samples are logged in the tracking system, weighed, dried and finely crushed to greater than 70% passing a 2 mm (Tyler 9 mesh, US Std. No.10) screen. A split of up to 1000 g is taken and pulverized to greater than 85% passing a 75 micron (Tyler 200 mesh) screen, and a 50-gram split is analysed by fire assay with an AA finish. Blanks, duplicate and certified reference material (standards) are being used to monitor laboratory performance during the analysis.
All results and press releases related thereto are reviewed for accuracy and to ensure that they are in accordance with National Instrument 43-101 by André Ciesielski, DSc. PGeo., Lead Consulting Geologist and Qualified Person, Algold Resources Ltd.
Algold Resources Ltd. is focused on the exploration and development of gold deposits in West Africa. The board of directors and management team are seasoned industry professionals with extensive experience in the exploration and development of world class gold projects in Africa.
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING INFORMATION
This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward looking statements (or forward-looking information). Forward-looking statements include words or expressions such as "could", "possibly", "believes", "target", "suggest", "enhance", "potential", "associate" and other similar words and expressions. The Corporation's plans involve various estimates and assumptions and its business is subject to various risks and uncertainties. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include geological interpretation and assumptions including whether the findings could possibly represent a large stockwork enclosed within a major shear zone, striking for more than 10 km, whether the area hosts a high-grade gold deposit, whether initial results suggest that the area is extremely rich with coarse, nugget-type gold, the ability of Corporation to continuously successfully identify gold-mineralised veins, the ability to locate and identify a potential host to a high-grade gold deposit on Tijirit, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to the calculation of mineral reserves and resources, delays, political and social stability in Africa and Mauritania more particularly (including our ability to maintain or renew licenses and permits) and other risks. More detailed information on these estimates, assumptions, risks and uncertainties can be found in the Corporation's most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at http://www.sedar.com . These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate. Such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.
Algold Resources Ltd.: 1320, boul. Graham, Suite 132, Mont-Royal, Québec, H3P 3C8, http://www.algold.com ; François Auclair M.Sc., PGeo, President & Chief Executive Officer, firstname.lastname@example.org, +1-(514)-889-5089; Yves Grou, CPA, CA, Executive Vice-Chairman, email@example.com, +1-(514)-237-7757