12:42:36 EST Wed 20 Feb 2019
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or Name

Fiore Gold Ltd
Symbol C : F
Shares Issued 97,566,128
Close 2018-07-11 C$ 0.42
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Fiore Gold receives 12-month extension for Rio Loa work

2018-07-12 10:04 ET - News Release

Mr. Tim Warman reports


Fiore Gold Ltd. has provided an update on its exploration projects in Chile.

On the Rio Loa project, where Fiore recently identified a high-sulphidation gold target, the company has negotiated a 12-month extension for completing the remaining work program required to complete the 100-per-cent earn-in on the project. Under the terms of the agreement, Fiore will issue 150,000 shares to the vendors, subject to exchange approval, in return for extending the deadline to complete the work to July 12, 2019. Previously announced results (news release of March 26, 2018) from geological and geophysical programs at Rio Loa have identified several drill targets, and this extension provides the company with an additional Andean exploration season (September through May) to carry out the next phase of work, which would include a first-pass drilling program. The Miocene-age Maricunga gold belt has been the focus of renewed exploration for large epithermal systems over the past several years, and Rio Loa is particularly interesting because of its proximity to Gold Fields' 3.8-million-ounce Salares Norte discovery, currently one of the highest-grade gold deposits in the Maricunga belt.

On Cerro Tostado, the company is evaluating various options to advance the project, including the addition of a joint venture partner. Previous exploration work, including core and reverse circulation drilling, has identified a series of parallel high-grade silver zones (see NR of Oct. 11, 2017). Exploration expenditures by Fiore are sufficient to cover the required work commitments through January, 2020, and all payments on the project are up to date.

Tim Warman, Fiore's chief executive officer, stated: "While our recent focus has been on our producing Pan mine and the Gold Rock development project in Nevada, we continue to believe our Chilean assets hold considerable value as part of our overall pipeline of projects from early exploration through to production. We are particularly encouraged by the results from our Rio Loa project, and appreciate the co-operation of the Chilean vendors in agreeing to an additional field season to complete the work commitments."

On the Pampas el Penon project, Fiore has notified the owner, Sociedad Quimica Y Minera de Chile SA, that it is withdrawing from the option agreement effective July 11, 2018. While results from our initial surface exploration and structural studies identified a series of promising targets, the subsequent 19-hole drilling campaign failed to intersect economic values of gold and/or silver. Following a recent evaluation of all our Chilean assets, management has determined that Pampas el Penon does not merit further expenditure.

Corporate strategy

Fiore corporate strategy is to grow Fiore into a 150,000-ounce-per-year gold producer. To achieve this, the company intends to:

  • Grow gold production at the Pan mine from a planned 35,000 ounces to 40,000 ounces in fiscal 2018 to between 40,000 ounces to 50,000 ounces per year by fiscal 2019, while also growing the reserve and resource base;
  • Advance exploration and development of the nearby Gold Rock project;
  • Acquire additional production or near-production assets in Nevada and surrounding states.

Qualified person

The scientific and technical information relating to Fiore's Chilean properties contained in this press release was approved by Vern Arseneau, PGeo, Fiore's vice-president of exploration, Latin America and a qualified person under National Instrument 43-101.

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