MONTREAL, QUEBEC–(Marketwire – Sept. 24, 2012) -Golden Tag Resources Ltd. (TSX VENTURE:GOG) is pleased to announce encouraging results from three recent drill holes in an ongoing surface drill program on the San Diego Property, Velardeña Mining District, Durango State, Mexico. These holes confirm a 100 m extension to the west of wide zones of mineralization discovered in 2011. The westward extension of mineralization crosses from limestone into the adjacent Diorite Intrusion where a large area of mineralization hosted in altered and silicified Diorite (Endoskarn) is being delineated. Mineralization currently has an apparent strike length of 200 m, a width of 130 m and a vertical height of 300 m. Mineralization remains open and further drilling will be needed to establish the exact geometry of the new zone. The discovery increases the potential for the deposit to be bulk mining amenable.
Highlights of the new results presented in Tables 1 and 2, include:
- 232.72 metres grading 119 g/t Ag.EQ with 53 g/t Ag, 0.48% Pb, 1.34% Zn and 0.17% Cu; (763.5 feet grading 3.47 oz./T Ag.EQ ), including:
- 154.32 m grading 132 g/t Ag.EQ with 57 g/t Ag, 0.49% Pb, 1.60% Zn and 0.20% Cu (506.3 feet grading 3.85 oz./T Ag.EQ),
- 240.85 m grading 148 g/t Ag.EQ with 63 g /t Ag, 0.77% Pb, 1.59% Zn and 0.20% Cu (790.2 feet grading 4.32 oz/ T Ag.EQ),Including:
- 159.05 m grading 158 g/t Ag.EQ with 68 g /t Ag, 0.77% Pb, 1.74% Zn and 0.22% Cu (521.8 feet grading 4.61 oz./T Ag.EQ)
- 16.80 m (12.0 m true width) grading 434 g/t Ag.EQ with 118 g /t Ag, 1.10% Pb, 9.2% Zn and 0.41% Cu (55.1 feet grading 12.66 oz./T Ag.EQ).
*Ag Equivalent (Ag.EQ) Calculation uses US$ commodity prices based on three-year moving average of: $1300/oz. Au; $24.50/oz. Ag; $0.90/lb Zn; $0.95/lb Pb; $3.25/lb Cu applying 100% recovery of all metals. All reported lengths are core lengths. T = short ton; T = metric tonne.
The property is a 50/50 joint venture between Golden Tag and Golden Minerals Company (NYSE Amex:AUMN)(TSX:AUM). Golden Tag is the operator and is earning an additional 10% interest in the property by incurring $3 million of exploration expenses (see News Release: March 28, 2012).
Hole SD-12-47 was drilled 70 m to the west of a large area of stringer mineralization identified during the phase 5 drilling in 2011 (see News Releases: November 15, 2011, December 12, 2011 and January 31, 2012). Hole SD-12-48 (Table 2) is located approximately 300 m directly above -47 and intersects near the upper limit of the mineralized endoskarn. Hole SD-12-49 was designed to cross obliquely and midway between, holes -47 and -48 to confirm the true widths of mineralization and to link with drilling in 2011.
Hole 49 also encountered stringer-style mineralization on the Diorite Western Contact (Table 2) with results of 151 g/t Ag.EQ over 18.40 m at a depth of 440.8 m including 259 g/t Ag.EQ over 7.43 m at 445.8 m. These results are of particular interest since this occurrence could be indicative of a similar underlying zone of mineralized endoskarn at the western contact, 150 m to the NW of the new Endoskarn zone.
On Going Exploration
Hole SD-12-50 has been recently completed 100 m northeast of – 49 as a step-out hole drilled to test for the extension of mineralization to the north. Samples have been submitted to the assay laboratory. Hole SD-12-50W, a wedge cut from hole -50, is an infill hole midway between holes -49 and -50. The hole is currently in progress and will the last hole of the phase 6 program. Assay results from these two holes will be issued when available.
Six phases of exploration drilling representing over 31,000 metres of drilling have shown that the property offers potential for mining from a variety of sources. Narrow high grade veins at surface have very strong strike and dip continuity and more importantly, at depth these veins are often associated with wider zones of mineralization. The wider zones often contain massive sulphides due to carbonate replacement and/or mineralized stringer zones.
Golden Tag is encouraged, particularly by results to date in this phase 6 program where a new style of mineralized endoskarn was discovered. This provides further support for a potential Bulk Mining model for the deposit. It is clearly a large zone, which remains open for further expansion within and around the contacts of the Diorite.
2012 Mineral Estimate and Technical Report
The Company is advancing an updated NI 43-101-compliant Resource Estimate which is expected in late November, 2012. The technical report will revise Resource estimates made in 2009 and include the results from 10,400 m of drilling completed as phase 5 in 2011, and the additional 5,500 m of drilling in the current phase 6 program.
Mr. David Rigg, C.E.O. Golden Tag, P.Geo. and Ms. Kateri Marchand, P.Geo, San Diego Project Manager; both Qualified Person’s under the definition of NI 43-101, have supervised the work program and have reviewed the technical accuracy of this press release.
Assay samples are taken from HQ/NQ size drill core cut in half with one half sent to a commercial laboratory and other half retained for future reference. A strict QA/QC program is followed which includes mineralized standards and blanks for each batch of samples. Analyses were performed by ALS Chemex accredited assay laboratories of Zacatecas (Mexico) and Vancouver (Canada). All drill core, laboratory pulps and rejects are stored on site.
Golden Tag Resources
Golden Tag is focused on exploration for high-grade gold and silver deposits in Canada and Mexico. Exploration projects are being advanced on the San Diego silver project in Durango State, Mexico; the Aquilon gold project in James Bay, Quebec and the Verneuil gold project in Quebec. Golden Tag also has interests in the McCuaig gold project in Red Lake, Ontario. Golden Tag has 53,426,558 issued and outstanding shares and has no outstanding debt.
Cautionary Statement: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Statements in the release that are “forward looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. For a discussion of the risk factors that are inherent in our business see our public filings at www.sedar.com.
Phase 6 Program – San Diego Property, Velardeña District, Durango State, Mexico
Table 1: Highlights of Diamond Drilling Results from Section 0+35E
|SD-12-47||652.65||654.35||1.70||0.18||502||7.21||0.66||0.24||747||Sulphide Vein in Diorite|
|675.65||677.75||2.10||0.06||54||0.95||0.20||0.11||99||Stringers in Diorite|
|686.00||686.70||0.70||0.08||44||1.21||1.71||0.11||136||Sulphide-QZ Vein in Diorite|
|730.10||739.65||9.55||0.04||58||0.68||0.38||0.04||92||Stringers in DIorite|
|778.55||1,011.27||232.72||0.04||53||0.48||1.34||0.17||119||East Diorite Contact – EndoSkarn Zone with Sulphide Veins and Stringer Stockwork|
|966.08||980.50||14.42||0.04||113||0.95||3.38||0.38||265||Replacement in Hornfels Limestone|
|1,004.35||1,011.27||6.92||0.01||67||0.90||3.22||0.24||198||Replacement in Grey Limestone|
|Azimuth: 180°, Dip: -63°; EOH: 1055.70 m|
|SD-12-48||214.00||215.25||1.25||0.09||246||0.40||0.76||0.07||288||Stringers in Marble|
|246.00||248.25||2.25||0.33||145||1.15||0.68||0.02||214||Stringers in Diorite|
|259.00||261.00||2.00||0.09||246||1.02||0.97||0.06||310||Stringers in Diorite|
|430.40||434.60||4.20||0.28||110||1.59||1.50||0.10||216||Sulphide Vein in Diorite|
|525.00||544.80||19.80||0.16||39||0.83||0.89||0.09||102||Stockwork in Diorite|
|562.85||563.95||1.10||0.11||166||4.08||3.15||0.18||381||Sulphide Vein in Diorite|
|664.65||685.45||20.80||0.05||25||0.64||0.60||0.06||66||Stringers in Exo/Endoskarn|
|722.90||789.50||66.60||0.03||43||0.65||0.80||0.06||89||East Diorite Contact – Endo- to Exo-Skarn with Stringers and local Stockwork|
|814.00||833.45||19.45||0.05||33||0.46||0.62||0.05||69||Limestone, Marble and Skarn|
|Hole SD-12-48 is at 250 meters directly above SD-12-47main EndoSkarn Zone|
Azimuth: 181°, Dip: -56°; EOH: 875.80 m
|1/ Ag.EQ: Price Deck uses US$commodity prices based on three-year moving average: $1300/oz.Au; $24.50/oz.Ag; $0.90/lb Zn; $0.95/lb Pb; $3.25/lb Cu.|
|2/ Cut off limits (& Minimum Mining Width): Selective Vein 93 g/t Ag (1.0 m); Long hole narrow 76 g/t Ag (2.50m); Bulk 60 g/t Ag (5.0m).|
Table 2: Highlights of Drilling Results from hole drilled obliquely across Section 0+35E
|SD-12-49||141.25||141.80||0.55||0.03||207||0.41||1.00||0.05||251||La Cruz Vein|
|184.95||188.90||3.95||0.37||439||7.60||2.46||0.02||731||La Rata Vein|
|440.88||459.28||18.40||0.28||67||1.60||0.96||0.02||151||West Diorite Contact – Sulphide Veins and Stringer Stockwork|
|755.25||996.10||240.85||0.07||63||0.77||1.59||0.20||148||East Diorite Contact – EndoSkarn Zone|
Sulphide Veins, Breccias and Stringer Stockwork
|1,018.55||1,035.35||16.80||0.15||118||1.12||9.18||0.41||434||Massive Sulphide Replacement of Grey Limestone|
|Hole SD-12-49 passes obliquely between holes -47 and -48Azimuth 158°, Dip -63°; EOH: 1091.90 m|
Table 3: Highlights of Results from extension drill holes on Section 1+75E
|SD-08-34||1053.65||1055.60||1.95||0.06||467||9.23||9.10||0.312||987||San Jose Vein|
|Azimuth 180°, Dip -65°; EOH: 1317.80 m|
|Azimuth 182°, Dip -50°; EOH: 1034.80 m|
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