Vancouver, B.C. — May 23, 2012: San Marco Resources Inc. (SMN: TSX-V) is pleased to report results from the first phase of core drilling at its 100% optioned Los Carlos property in the “Sonora Mojave Megashear”, Sonora State, Mexico.
Los Carlos is an intermediate sulphidation, epithermal type system where gold/silver/lead veinlets are hosted in rhyolite porphyry. Several gold mines operate in the area, such as Goldgroup’s Cerro Colorado mine 18km to the north, Timmins Gold’s San Francisco and AuRicos El Chanate mines to the east and northeast. Resource gold grades of heap leach mineralization at these mines, as posted on their websites, are in the 0.6 — 0.7 grams of gold per tonne (g/t) range. Infrastructure in the Los Carlos area is excellent, with ample water, grid power close by, relatively flat terrain and a local work force experienced in modern day mining and exploration activities.
A total of seven holes (1560m of HQ and NQ) tested a 150m portion of a major shear/fault structure, approximately 200 — 300m wide, extending in a NW direction for at least 1.5km across the property. All seven drill holes intercepted gold and silver mineralization. Previous surface sampling by San Marco identified numerous mineralized structures within this main shear structure. Drilling confirms gold and silver mineralization hosted in quartz veins, veinlet’s and fracture fillings, having various orientations, occurs in numerous sub-parallel 2 — 30 m wide zones and extends from surface at least down dip to the reported drill intercepts. Oxidation appears to be > 95%, and extends up to 100m below surface as indicated in the drilling. Hematite is the dominant oxide mineral, and any residual sulphides noted are galena and pyrite. The host rock is highly fractured rhyolite porphyry which has intruded as a low angle sill like feature between the Precambrian basement metamorphic gneiss and the overlying Jurassic age sedimentary sandstone/siltstones. (Click on link for cross sections http://media3.marketwire.com/docs/snm0523.pdf )
San Marco’s Chairman, Bob Willis stated; “Our initial drill program has demonstrated that gold/silver grades and style of mineralization, are very similar to operating mines in the area. Of significance, San Marco’s adjoining 156 square km Los Carlos II concession hosts a number of old workings with similar geological signatures. Our geological team is currently ramping up exploration on two zones that are within 5 km from our current drilling location. “
Significant drill intercepts are:
(Intercept average 100m below surface)
(Intercept average 75m below surface and 50m to the ESE of LCD12 — 02 above)
(Intercept average 50m below surface and 50m ESE of LCD — 06 above)
(Intercept average 50m below surface and 100m SW of LCD — 05 on same section line)
(Intercept average 40m below surface and 100m SW of LCD12 — 03 above, on same section line)
Appears to be on the SW edge of the main shear structure.
(Intercept average 75m below surface and 50m to the west of LCD 12 — 02 section line.)
1. Drill core recovery appears to be at least 75% in all holes. HQ core was drilled and reduced to NQ in zones of highly fractured and broken ground.
2. Rounding may occur in grade calculations
3. For consistency with previous news releases, a 50 (silver) to 1 (gold) ratio has been used for gold equivalent calculations.
4. All holes are 200 Azimuth and drilled at either — 45 or — 50 degrees
5. Reported drill hole intervals appear to be between 80% and perpendicular to the strike of the primary NW shear/fault structures.
6. Individual process recoveries are not factored into the gold/silver ratio calculations
7. Drill hole interval grade calculations may include internal low grade and waste sections. All assays have been included in the weight averaged reported intervals. Intervals that returned assays below detection limit were assigned zero value.
Mineralization appears to have a shallow plunge following the shear trend in a NW direction. Early indications from drilling suggest bulk mineable targets as well as higher grade underground possibilities exist. There does not appear to be a grade or mineral occurrence relationship between gold and silver, therefore silver mineralization may be an additional phase. It should also be noted that locally, lead values assay 1 — 5 % and zinc in the 0.5% range. The drill hole section with holes LCD12 -05, LCD12 — 03 and LCD12 — 04 appears to be on the eastern end of the apparent plunge of mineralization to the NW. Drill LCD12 — 01 was drilled underneath the mineralized zones in the shear structure and returned anomalous low grade gold values ; 0 — 50.1m of 0.15 g/t AuEq. The main NW shear structure appears to dip 55 — 65 degrees to the NE. Secondary NE faulting has offset the main shear structure in many locations and such faults appear to host a subsequent phase of mineralization. The intersections of this NE orientation with the main NW shear/fault structure appear to be structural traps where significant mineralization may occur. The reported drill holes have tested about 150m of the approximately 1.5km of the main shear strike, and only part of its 200 -300m width where surface geology indicates multiple sub-parallel internal mineralized structures exist. Therefore mineralization occurs from surface at least down to the drill intercepted intervals, and is open on strike and to depth.
A Phase II exploration drill program is being prepared for the Los Carlos concession. In addition, exploration (including, mapping, and sampling trenching) will commence on the adjacent, recently staked 156 square km Los Carlos II concession. Initial reconnaissance work resulted in discovery of four areas of old workings which were sampled by San Marco’s geologists (see News Release dated April 12, 2012). Two of these prospective areas are within 5 km of the current Los Carlos drilling and appear to exhibit similar regional geological characteristics.
The technical information contained in this press release has been verified, and this news release has been approved, by San Marco’s President, Robert D. Willis, P. Eng., a ‘qualified person’ for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. All samples are taken under the supervision of qualified geologists and stored in sealed bags. Drill core was split with a hydraulic splitter, one half retained in secure storage and the other half bagged and secured until picked up by ALS Chemex for assaying. Blanks, duplicates and certified standards were inserted into the sample stream. ALS Chemex PREP 31B sample preparation was used at Chemex facilities in either Hermosillo or Guadalajara, Mexico. The analyses reported were carried out at ALS Chemex Laboratories of North Vancouver using industry standard analytical techniques. Analytical procedures included Au-AA23 for gold and ME-ICP61 for multi elements.
For further information contact:
Robert D. Willis
Chairman & CEO
V.P. Corporate Communications
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.