MONTREAL, January 20, 2017 /PRNewswire/ --
ALGOLD RESOURCES LTD. (TSXV: ALG) (the "Corporation") today announced the final assay results from its Phase II - 10,000-meter drilling campaign, as well as the results of a regional rock chip sampling program carried out on the Tijirit property ("Tijirit") in Mauritania. Results have not only continued to demonstrate the high-grade nature of the Eleonore zones, but have also revealed a new mirror-image structure 500 meters west and parallel to Eleonore, further expanding the overall footprint of the mineralized area. (Figure 1)
- Hole T16RC137 (Eleonore North) - 3 m @ 4.69 g/t Au, extending the mineralization 100 meters below the surface (Figure 2).
- Hole T16DD013 (Eleonore North) - 4.65 m @ 3.24 g/t Au (Figure 2), on a parallel structure situated about 50 meters west of the intersect 5.0 m @ 6.6 g/t Au in hole T16RC045.
- Hole T16DD012 (Eleonore Central) - 5.53 m @ 1.14 g/t Au - in a parallel structure about 100 meters east of the high-grade 6 m @ 9.31 g/t Au intersection in hole T16RC032. The core section analyzed displayed visible gold in a quartz vein, which was left in the half-cut core section at Algold Tijirit's camp for further reference. The low-grade nature of the intersection, while visible gold was observed, is typical of the type of deposit with nugget effect, such as Eleonore. (Ref. Photo 1) (Figure 3)
- A grab sample from a newly uncovered zone (West Zone) returned 9.29 g/t Au from the bottom of a pit situated 1.5 kilometers northeast of RC holes 12TRC048 and 12TRC049, which returned 3.0 m @ 1.9 g/t Au and 2.0 m @ 2.71 g/t Au, respectively.
- A grab sample from the south of Eleonore South returned 43.9 g/t Au, while a grab sample from an area to the north of the Nour vein returned an outstanding 102.5 g/t Au. These samples suggest that the Eleonore structure remains open along strike.
The Phase II 10,000-meter drilling program was completed on December 8, 2016 and included 8,583 meters of reverse-circulation ("RC") and 1,147 meters of diamond drilling ("DDH") drilling, for a total 20,411 meters.
As of January 16, 2017, Algold was in receipt of all assays from the two phases, representing 20,411 meters of drilling on the Tijirit property. The Corporation sent 5,790 samples for analysis as part of Phase II and a total of 11,780 samples from both phases of the 2016 exploration program.
The Eleonore North zone has now been defined by drilling over 1,000 meters along strike to a vertical depth of up to 150 meters below the surface. The Eleonore Central zone has been defined over 670 meters and up to a vertical depth of 180 meters, while the Eleonore South zone has been defined over 1,200 meters and to a vertical depth of 200 meters. All three zones are open along strike and at depth over a three-kilometer strike (Figure 1). This is in addition to the Nour discovery announced on November 1, 2016.
These results, combined with the 10,000 meters drilled from Phase I and the 35,000-meter drilling program carried out by previous operators, will serve as the basis for the resource estimate to be published in the coming weeks.
Table 1: New Assay Result Highlights - Phase II Reverse-Circulation Drilling Program Hole ID Prospect East North From To Vertical Average Width*** Comments Grade** Depth* (g/t UTM UTM (m) (m) (m) Au) (m) Eleonore T16DD013 North 482325 2250550 48.1 52.75 39.0 3.24 4.65 Including 2.4 m @ 6.0 g/t Au Eleonore T16RC137 North 482463 2250556 108 113.0 87.0 1.16 5.0 125 128.0 100.0 4.69 3.0 40 m depth extension Eleonore Wide mineralized zone with VG T16DD012 Central 482278 2249849 53.0 58.53 40.0 1.14 5.53 (Photo 1) Eleonore Extends mineralization 100 m T16RD080 South 481797 2248915 196.25 199.35 158.0 2.57 3.1 below last intercept New zone 400 m west of Eleonore previously defined T16RC138 West 481147 2248641 43 46.0 34.5 1.87 3.0 mineralization * Vertical depth of intersection below RL collar. ** Weighted average grade, composite based on a minimum grade of 0.3 g/t Au with an internal dilution of 0.005 g/t Au over 2 m and an edge grade of 0.25 g/t permitted. *** Down-hole length (believed to be close to true width) No capping of higher values has been applied. Note: Complete assay results are available on Algold's website (www.algold.com).
Exploration - New Parallel Structure
Geological mapping and rock chip sampling carried out during the drill program in the fourth quarter 2016 identified a potential three-kilometer-long anomalous structure, not yet drill-tested, located approximately 600 meters west of the currently defined Eleonore mineralization. Results from a grab sample returned 9.29 g/t Au from this new discovery (Figure 1). This structure had not been previously identified, being covered by a northeast trending sandbar. This area will be further drilled and delineated in Q1 of 2017 with results potentially leading to a significant increase in the total Eleonore resource.
In addition, another visible gold bearing quartz vein has been located 200 meters southwest of previous drilling at Eleonore South. This vein, also in an area of abundant transported sand cover, was identified in Q4 of 2016, but not drill tested. The sample is currently being analyzed by the screen fire assay method, the original fire assay returned 43.9 g/t Au. It highlights the significant potential for further high-grade discoveries along strike from those currently defined. (Figure 1).
A 102.5 g/t Au sample was returned from another new area approximately eight kilometers north of the Nour vein in the north of the Tijirit exploration permit. The location of this rock chip sample result once again highlights the potential of Algold's permitted land in Mauritania.
Easting Northing Sample ID Zone UTM UTM g/t Au Lith1 Description Quartz boulders with sulphide A08449 Eleonore South 481409 2248282 43.9 QzST up to 40 cm Smoky quartz with oxides of A11943 Eleonore West 481547 2250132 9.29 Qz Fe(FeOx)+ Box works Quartz vein with CuO + FeO A11950 New Vein North 488144 2265926 102.5 Qz (cavity and fractures) + VG
Detailed geological descriptions of all mineralized zones can be found on Algold's website (www.algold.com) and on SEDAR (www.sedar.com) in the report entitled "Algold 43-101 Technical Report: Tijirit Maiden Mineral Resources Estimates for the Tijirit Gold Project in Mauritania".
Quality Assurance / Quality Control (QA/QC)
Analytical work for drill core and chips, geochemical samples and rock chip 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 the Corporation's field camps and put into sealed bags until delivered by a geologist to the ALS preparation laboratory in Nouakchott, Mauritania, where samples are prepared for shipping. Until the end of 2015, samples were analyzed at ALS facility in Bamako, Mali. Since early 2016, samples are analyzed at ALS in Ireland. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70%, passing a 2 mm (Tyler 9 mesh, US Std. No.10) screen. A split of up to 1,000 g is taken and pulverized to better than 85%, passing a 75-micron (Tyler 200 mesh) screen, and a 50-gram split is analyzed by fire assay with an AA finish. Blanks, duplicates and certified reference material (standards) are being used to monitor laboratory performance during the analysis.
This press release has been reviewed for accuracy and compliance under National Instrument 43-101 by André Ciesielski, DSc., PGeo., Algold Resources Ltd Lead Consulting Geologist and Qualified Person, and Alastair Gallaugher, C.Geo. (Chartered Geologist and Fellow of the Geological Society of London), BSc. Geology, Algold's Exploration Manager in Mauritania, Qualified Persons as defined by NI 43−101 Standards of Disclosure for Mineral Projects. André Ciesielski has further approved the scientific and technical disclosure in the news release.
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 resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.
Algold is the operator of all of its exploration licenses in Mauritania. Algold owns 100% of Tijirit, which represents an area of more than 1,000 km2, situated approximately 25 kilometers southeast of the Tasiast gold mine as well as the Akjout properties, which were acquired from Gryphon Minerals (Australia) through a transaction completed earlier in 2016. Exploration is being carried out on the Eleonore, Sophie I, Sophie II-III and Lily zones. The Kneivissat property is 90% owned by Algold and the Legouessi property is being managed through a 51% earn-in interest agreement with Caracal Gold LLC. Algold can earn up to a 90% interest in the Legouessi exploration permit (reference Algold's press release dated October 10, 2013 for more details), however, Caracal has the right to participate in the joint venture at either 51% or 75% by funding its share of expenditures.
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING INFORMATION
This press 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). The Corporation's plans involve various estimates and assumptions and its business is subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see 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 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. Forward-looking 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, bureau 132, Mont-Royal, Québec, H3P 3C8, www.algold.com; François Auclair M.Sc., PGeo, President & Chief Executive Officer, email@example.com, +1 (514) 889 5089; Alex Ball, Executive VP, Finance and Corporate Development, a.ball@algold,com, +1 (647) 919 2227