VANCOUVER, British Columbia, February 15, 2012 /PRNewswire/ --
Pan American Goldfields Ltd. (OTCQB: "MXOM") (the "Company", "PAG") is pleased to announce that a NI43-101 compliant technical report on its Cerro Delta project in Argentina has been filed on SEDAR. The report was prepared on behalf of Pan American by Mr. William Crowl of Gustavson Associates of Lakewood, Colorado and is dated January 30, 2012. The report summarizes the geology, geophysics and mineralization of the project area and reviews the exploration plan that is the basis of the current exploration program that is currently underway.
The technical report prepared by Gustavson Associates summarizes the Cerro Delta project as follows: "PAG's Cerro Delta Project is an early stage exploration project with potential to discover porphyry gold (copper) deposits at depth. This conclusion is based on the location of the Cerro Delta Project in the Maricunga Gold Belt of Chile and Argentina, combined with the results of previous investigators geologic mapping, rock chip sampling, soil sampling and geophysical surveys. The geophysical surveys identified potential drilling targets at depths in the range of 150 to 500m. Furthermore, there are strong indications that other targets representing structurally-controlled epithermal exist on the Cerro Delta prospect."
The Cerro Delta property covers an area of 20,721 hectares in the far northwestern part of La Rioja Province, Argentina. It is within the southern portion of the "Maricunga Gold Belt" and at the current level of understanding; it shares many of the same characteristics as the many large gold and gold/copper deposits which define this belt. It is located about 20 km. to the east of the Cerro Casale deposit of Barrick/Kinross and 30 km. southeast of the Caspiche deposit of Exeter Resources, both of which host resources exceeding 25 million ounces of gold and 6 billion pounds of copper. As stated in the technical report "the Cerro Porfiro copper-gold mineralization compares favorably with the "Porphyry Gold" model cited for the mineralization common in the Maricunga Belt, specifically at Cerro Casale, Refugio, etc."
Dr. Alexander Borisenko, an expert regarding porphyry style gold deposits and the head of the ore deposit geology department at Novosibirsk State University in Russia is also an adviser to Pan American's board of directors. He recently visited the Cerro Delta and after noting what he described as the "huge size of the Cerro Delta's alteration zone which is similar to alteration zones in neighboring known deposits" he summarized his findings by saying: "There is clear correlation by age of host rocks, by age of mineralization, by geological setting, and in addition they are located in one tectonic structure. Taking into account our knowledge of Chilean properties especially their geology there is good possibility to find something similar at Cerro delta."
Early prospecting in the wider Cerro Delta area was conducted by Cia Alto Rio Salado in 1992. In 1993/94 a strong Au anomaly in outcrops on the southern end of the Cerro Delta prospect was delineated. Additional sampling was conducted and provided the first evidence of mineralization in a porphyry intrusive apophysis in the granodiorite to the west of Cerro Delta, now known as Cerro Porfiro. In 1996/97, the first systematic exploration work was done on the property using an extensive program of soil geochemistry, rock in outcrops and trenches. Geophysics survey were conducted as well (magnetics, resistivity and induced polarization). A large gold-in-soil anomaly and a strong IP (Induced Polarization) anomaly in the area of both Cerro Porfiro and Cerro Delta were defined. The surface trenches showed samples yielding gold values in rock up to 0.8 g/t associated with stockwork sulfide veinlets at Cerro Porfiro and up to 4.0 g/t in the silicified breccias at Cerro Delta.
Exploration at the Cerro Delta project for the 2011-2012 field season commenced in October, 2011 and is slated to continue through April 2012. Field activities include an extensive geological mapping and rock sampling program covering much of the project area, an expanded soil sampling program, and additional geophysical surveys. The results of this current work will be integrated with earlier work to allow the definition of several high priority drill targets. Drilling of these targets is slated for later in this field season.
The technical information in this release has been reviewed by Gary A. Parkison, a Director of Pan American Goldfields and a Qualified Person as defined by NI43-101.
About Pan American Goldfields
Pan American Goldfields is a precious metal producer and exploration company. It is a specialist in exploration, mine development and production in Mexico's booming Sierra Madre Gold-Silver Belt. The company's most advanced project is its now producing Cieneguita gold-silver mine where a preliminary economic assessment is underway. In addition, it holds the Cerro Delta project in Argentina, where it is exploring for large gold and copper-gold mineralization in the Maricunga Gold Belt in Argentina, across from a number of world-class projects in Chile. The Company continues to assess other high impact opportunities.
On behalf of the Board of Directors,
Neil Maedel, Chairman
Safe Harbor Disclosure
The information in this press release contains forward-looking statements regarding future events or the future financial performance of the Company. Please note that any statements that may be considered forward-looking are based on projections; that any projections involve judgment, and that individual judgments may vary. Moreover, these projections are based only on limited information available to us now, which is subject to change. Although those projections and the factors influencing them will likely change, we are under no obligation to inform you if they do. Actual results may differ substantially from any such forward looking statements as a result of various factors, many of which are beyond our control, including, among others, the timing and outcome of our feasibility study on our Cieneguita Project; the costs and results of our initial production activities on our Cieneguita Project; the future financial and operating performances of our projects; the estimation of mineral resources and the realization of mineral reserves, if any, on our existing and any future projects; the timing of exploration, development, and production activities and estimated future production, if any; estimates related to costs of production, capital, operating and exploration expenditures; requirements for additional capital and our ability to raise additional capital on a timely basis and on acceptable terms; government regulation of mining operations, environmental risks, reclamation and rehabilitation expenses; title disputes or claims against our existing and any future projects; and the future price of gold, silver, or other minerals. These and other factors can be found in our filings with the SEC. The Company undertakes no obligation to release publicly the results of any revision to these forward-looking statements to reflect events or circumstances following the date of this release.
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SOURCE Pan American Goldfields Ltd