October 22nd, 2020 Altamira Gold Corp.’s (TSXV: ALTA) (FSE: T6UP) (USA: EQTRF), (“Altamira” or the “Company”) is pleased to announce the receipt of results from recent trenches that identified several new mineralized structures at the Cajueiro gold project in Brazil.
- Channel results from three new mineralized structures in the Baldo area of the Cajueiro project area include 7m @ 1.32 g/t gold (Baldo 3), 3m @ 4.43 g/t gold including 1m @ 11.59 g/t gold (Baldo C), and 4m @ 3.27 g/t gold including 1m @ 10.78 g/t gold (Baldo D)
- Channel results from previously known mineralized structures in the Baldo area of the Cajueiro project area include 14m @ 1.27 g/t gold (Baldo) and 6m @ 1.93 g/t gold (Baldo 1)
- The collection of one large bulk sample of oxide material from the Cajueiro project has been completed, and has been sent to the Brazilian Metallurgical Test laboratory, and will shortly be sent to the CSIRO lab in Australia, in order to maximise plant recovery
- Soil sampling is in progress in and around the Maria Bonita gold-in-soil anomaly located 5km NW of the known deposits at Cajueiro and is aimed at establishing the source of placer gold in that part of the Cajueiro project area
Michael Bennett, President and CEO stated, “The channel results from the three new mineralized structures in the Baldo area are highly encouraging and contain several high-grade intervals, confirming our belief that there is significant potential to expand the present 43-101 resource within the central area at Cajueiro. The current resource corresponds to approximately 1% of the project area and we expect to identify further new zones both within and outside the resource area once the stripping of surface cover commences in advance of production”.
Trench Results from New Mineralized Structures in the Baldo Area
On 29th July 2020, the Company announced that it had identified 3 new mineralized structures (Baldo 3, Baldo C and Baldo D) in surface trenching in an around the Baldo area, which together with the Crente, Marines and Matrincha areas, comprise the current resources at Cajueiro and include NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category. These resources cover approximately 1% of the current claim area of 28,557ha. Numerous historic areas of placer workings and several important gold-in-soil anomalies at Novo Sonho, Maria Bonita, Sossego and Cajueiro Sul remain untested (Figure 1).
The new trenches within the Baldo area were completed in the course of obtaining bulk samples for metallurgical testwork. These are shown in Figure 2 and are summarised as follows:
- Baldo 3 – ENE structure located approximately 350m north of the known Baldo 1 zone and appears to be parallel to Baldo 1. New channel samples from this structure include 7m @ 1.32 g/t gold and 4.4m @ 0.5 g/t gold and correlate with an intercept of 10m @ 1.48 g/t gold in a previous trench. Baldo 3 is open to the east and west in areas with gold-in-soil anomalies
- Baldo C – NE trending structure located immediately south of Baldo 1. Results from a new trench on this structure returned 3m @ 4.43 g/t gold including 1m @ 11.59 g/t gold, 150m NE of a previous trench which returned 7m @ 5.53 g/t gold. The minimum estimated strike length on this structure is 400m, and it is open to the south
- Baldo D – NE trending structure located immediately north of Baldo 1. Recent trenching returned 4m @ 3.27 g/t gold including 1m @ 10.78 g/t gold, 175m NE of previous trenching which returned 3m @ 6.54 g/t gold. The estimated strike length is approximately 500m
It is important to note that none of these new structures form part of the published 43-101 resource estimate for Cajueiro.
Additional trench results were also obtained from the known Baldo deposit (which forms part of the existing resource at Cajueiro) and include 14m @ 1.27 g/t gold and 2.3m @ 1.57 g/t gold, as well as the previously identified Baldo 1 structure (see Figure 2) which returned 6m @ 1.93 g/t gold.
Results were also returned from channel samples in one new trench in the Crente area and two new trenches 900m to the NE did not return any significant values. Additional trenching is planned in an effort to identify the NE limit to the mineralized zone at Crente.
Cajueiro Gold Project Update
Altamira continues to explore a number of alternative funding arrangements for the US$6M required to fund the construction of a 1000t/d gravity processing plant and surface mine, and is confident that it will secure funding in the near term.
The collection of one large bulk sample of oxide material from the Cajueiro project has been completed, and has been sent to the Brazilian Metallurgical Test laboratory, and will shortly be sent to the CSIRO lab in Australia, in order to maximise plant recovery.
Addiitional soil sampling has been completed in and around the Maria Bonita gold-in-soil anomaly located 5km NW of the known deposits at Cajueiro, and is aimed at establishing the source of placer gold in that part of the Cajueiro project area. Results are pending.
Overview of Cajueiro Gold Project
The Company’s advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category. This information is contained in a November 22, 2019 Technical Report prepared in accordance with NI 43-101 and available at www.sedar.com.
A total of 14,000m of drilling (105 holes) and over 4,000m of trenching have been completed to date within 285ha in the central part of the 28,577ha claim package (or 1% of the Cajueiro project area). Numerous other gold-in-soil anomalies remain untested.
A production decision at Cajueiro is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and as a result there is increased uncertainty and there are multiple technical and economic risks of failure which are associated with this production decision. These risks, among others, include areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. In accordance with NI 43-101 and the companion policy to that instrument, Altamira cannot provide any guidance either in terms of anticipated gold production or net cash flows.
Guillermo Hughes, P. Geo., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Neither the TSX Venture Exchange nor it’s 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 release.
About Altamira Gold Corp.
The Company is focused on the exploration and development of gold projects within western central Brazil. The Company holds 9 projects comprising approximately 280,000 hectares, within the prolific Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company’s advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category.
On Behalf of the Board of Directors,
ALTAMIRA GOLD CORP.
President & CEO
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Except as required by law, we do not undertake to update these forward-looking statements.