Vancouver, B.C. – August 20, 2013: San Marco Resources Inc. (“San Marco” or “the Company”; SMN: TSX-V) is pleased to announce additional and final results from the Company’s Phase I exploration drill campaign at the Angeles property in northern Sonora state, Mexico.
Exploration at Angeles commenced during the summer of 2012, and resulted in discovery of the mineralized Angeles fault structure over approximately 3,000 metres of strike length. Assay results of surface sampling and from historic underground workings have been previously disclosed by the Company.
Since drilling commenced in April, 2013, 11 holes have now been completed at the Bonanza zone and 4 at the La Verde zone, 1.1 km to the west of La Bonanza. Assays from the first 8 holes at Bonanza were previously disclosed (News Releases dated May 23, 2013 and July 9, 2013). Drill hole locations can be reviewed on a long section posted on the Company’s website.
Subsequent to previously released drill hole data at La Bonanza zone, three additional holes, AD13-09 to AD13-11, have been completed. Drill hole AD13-09 is a 200 metre step-out to the east of previously reported AD13-07 and 250 metres east of AD13-08, and intersected the Angeles structure approximately at the same vertical depth. Highlights of assay results from AD13-09 are:
* Core recovery is estimated to be at 55%.
Highlights of previously reported AD13-07 and 08 are:
% Pb-Zn Combined
% Pb-Zn Combined
The following drill hole AD13-10 was stepped out an additional 200 metres to the east from AD13-09, where the Angeles structure was intersected as expected. Results are:
Drill hole AD13-11 was located approximately 180 metres to the west of all previous Bonanza zone drilling. It appears the Angeles structural dip has flattened in this area and the structure was intersected much shallower and higher in the mineralizing system than expected. Only anomalous silver and copper were encountered over a narrow intercept.
1. A silver to gold ratio of 50:1 was used for AuEq calculations.
2. Drill intervals reported are down hole intercepts. True widths are estimated to be greater than 80% of reported widths.
3. Metallurgical recoveries and net smelter returns are assumed to be 100% for these calculations.
4. Copper, lead and zinc values are not included in AuEq calculations.
5. Drill core recovery of the announced mineralized zones is generally greater than 90%, unless otherwise noted.
6. Down hole intercepts are calculated based on geological observations of the structure and not on a specific cut-off value
“We are very pleased with the Phase I drill results, which indicate there is significant potential to expand size with large drill hole step-outs. As well, excellent continuity of mineralization grades and structural widths, bodes well in assisting our project exploration team as they generate our Phase II exploration program.” said San Marco CEO Bob Willis.
Phase I drilling has identified consistent mineralization hosted in the Angeles fault structure over 600 metres of strike and 300 metres down dip, and is open in all directions.
Exeter Resource Corp. (TSX:XRC; NYSE MKT:XRA) is currently funding a $1.0 million committed exploration program at Angeles, which is largely related to the recently completed 2,500 metres of Phase 1 drilling at the La Bonanza and La Verde target areas, pursuant to an agreement whereby it has the option to earn an initial 51% in the Angeles property by staged expenditures totalling $10 million over 4 years and an additional 19%, over the next 3 years, for a total of 70% by spending an additional $10 million in exploration expenditures.
Exeter will also make cash payments, totalling $950,000 staged over 7 years, by way of a private placement purchase of San Marco’s common shares at a price equal to a premium of 25% to the 20 day volume weighted average price .
La Buena Project Update
San Marco is now preparing for initial drilling to commence at the La Buena project, Mexico. Recently completed expansion IP geophysics has successfully complimented previous IP work centred on the Julia zone, the principal drill target at La Buena. Exeter has committed to first year expenditures of C$1.4 million, which includes a property scale IP geophysics program (completed) and 2,500 metres of drilling. Plans are to commence the 2,500 meter drilling in early September, initially targeting the Julia zone. The Julia zone has similar geological, geochemical and geophysical characteristics to other mineral deposits in the area, including Peñasquito and Camino Rojo.
The La Buena property consists of an 8,500 hectare land package located in an active mining region within northern Zacatecas State, Mexico. The property is 5 km north of Goldcorp’s La Negra/Noche Buena deposit and 9 km north of its Peñasquito mine.
Exeter Resource Corp. has the option to earn 60% in the La Buena property from San Marco.
Quality Control and Assurance
Blanks and certified standards were inserted into the sample stream as part of San Marco’s quality assurance and control program, which complies with National Instrument 43-101 requirements. Core samples are split using a hydraulic splitter, with one half retained in secure storage for logging, and the other half sent to ALS Chemex Lab in Hermosillo, Sonora, Mexico. All samples are prepared using the PREP -31 method. 125 gram pulps are sent to ALS Chemex Lab. in Vancouver, B.C. A 30 gram split is analyzed for gold, using the Au-AA23 method. Sample results greater than 10 ppm are re-assayed, using AA23 fire assay and gravimetric finish. For silver, copper, lead and zinc, a multi-element, four acid digestion (ME — ICP 61 is used. For initial assays of silver > 100 ppm, copper, lead and zinc > 10,000 ppm (over limits), the OG62 method is used for re-analysis.
The technical information contained in this press release has been verified, and this news release has been approved, by San Marco’s CEO, 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.
For further information, contact:
V.P. Corporate Development
Robert D. Willis
This news release contains “forward-looking information” and “forward-looking statements” (together, the “forward-looking statements”), which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; changes in government regulations and policies, including trade laws and policies; failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. These forward-looking statements are made as of the date of this news release. San Marco Resources Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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