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Advance Gold Corp (2)
Symbol AAX
Shares Issued 26,016,124
Close 2019-04-23 C$ 0.13
Recent Sedar Documents

Advance drills 1.05 m of 0.58 g/t Au at Tabasquena

2019-04-24 12:58 ET - News Release

Mr. Allan Laboucan reports

ADVANCE GOLD HITS SILVER AND GOLD IN OXIDE ZONE OF EPITHERMAL VEIN SYSTEM AT TABASQUENA PROJECT, MEXICO

Advance Gold Corp. has released drilling results from its phase 3 drilling program at the 100-per-cent-owned Tabasquena project in Zacatecas, Mexico. This 1,093-metre diamond drilling program included two deep holes targeting the western extension of a cluster of epithermal veins and one shallow hole to test the potential of the veins in the near-surface oxide zone.

Drilling highlights

The 180 m shallow hole targeted the oxide zone of the vein system and returned a 17.65-metre intersection with gold and silver mineralization throughout. Highlight interval included 4.72 m with 0.15 g/t gold and 73 g/t silver. The best gold interval was 1.05 m of 0.58 g/t gold and 31 g/t silver.

The oxide zone was hit at approximately 75 metres of depth, it is 125 m north along strike of the nearest historical mining. More drilling will be needed to determine if this is a strike extension of the historical mining by Penoles of the main Tabasquena vein, or one of the other veins in the cluster. The two deep holes did not intersect the targeted depth extension of the cluster of epithermal veins discovered in phase 1 and phase 2 drilling. It is possible that the veins are more vertically dipping than the company had thought.

Allan Barry Laboucan, president and chief executive officer of Advance Gold, commented: "We have completed three drilling programs for a total of 10 drill holes, nine focused on drilling below the oxide zone and one targeted to hit the oxide zone at approximately the same depth as the historical mining by former operator Penoles. In this third phase of drilling, our goal was to test the depth extension of the cluster of epithermal veins hit in our earlier drilling. Based on this drill program, we no longer believe the fault is the mineral source, and that we need to re-evaluate the dip direction of the veins we hit in earlier drilling. We have yet to drill into the boiling zone of the cluster of epithermal veins. After our first shallow hole hit a 17.65-metre vein intersection, at approximately the same depth level as Penoles had mined in the past, we were comfortable we had a good intersection to help us understand the oxide zone better. Our findings suggest that either the Tabasquena vein gets significantly wider in the oxide zone as we move north, or that we hit another vein in the cluster, possibly in the oxide zone. We have more drilling to do in order to test the boiling zone of the cluster of epithermal veins, and to test the oxide zone more thoroughly to determine near surface mining potential at the Tabasquena project."

Details of phase 3 drilling

Phase 3 drilling included the first hole that was focused on testing the oxide potential of the epithermal vein system. Hole AGT-09 was targeted to test down to the depth where historical mining intersected the oxides 125 metres away north of the strike of the known vein. More drilling will be required to determine if this is a strike extension of the Tabasquena vein that Penoles mined or another vein in the cluster.

Deeper drilling in phase 3 opened up the potential that the veins could be dipping more vertically. The two deep drill holes in phase 3 (AGT-08 and AGT-10) were drilled from west to east. The targeted vein cluster was not intersected from these western stepouts. Importantly, drilling in phase 3 went through the fault and back into the andesites, which strongly suggests that the fault is not the plumbing system for the cluster of veins.

Drilling results

From (m)          To (m)   Sample       Au       Ag   Sample
                         width (m)     g/t      g/t       No.

120.2             121.3       1.1     0.45       35     7239
121.3            122.35      1.05     0.58       31     7240
122.35            123.4      1.05     0.12       39     7241
123.4             124.5       1.1     0.05       28     7242
124.5            129.22      4.72     0.15       73     7243
129.22           132.85      3.63     0.09       34     7244
132.85           134.35       1.5     0.05       48     7245
134.35           137.85       3.5     0.16       29     7246
Total metres                17.65                           
Weighted average                      0.17    44.44       

This hole had 28 core samples taken, they have been submitted 
to the laboratory for assaying, results are pending.  
This hole had two core samples taken, they have been submitted 
to the laboratory for assaying, results are pending. 
Note: All vein widths cut by drills holes are not true widths, 
they represent the intersection of the incline hole with the 
dip of the vein. Advance is in the process of estimating true 
widths for all the vein intersections.
 

Drill core is logged and sampled in a secure core storage facility located near the Tabasquena claims by Ojocaliente, Mexico. Core samples from the program are cut in half, using a diamond cutting saw, and were sent to Laboratorio Metalurgico Courtade SA de CV in San Luis Potosi, Mexico, for sample preparation and fire assaying for gold and silver. Although, Laboratorio Metalurgico Courtade is not an accredited mineral analysis laboratory, they are a well-respected mineral analysis laboratory with a long history of working for major mining companies in Mexico, as well as a referee laboratory for grade disputes between small-scale local miners and the toll mining companies they work with. All samples are analyzed for gold and silver using standard fire assay AA (atomic absorption) techniques. The company relies on Laboratorio Metalurgico Courtade for quality assurance/quality control procedures and protocols for the assaying process.

Dr. Julio Pinto Linares is the qualified person for the Tabasquena project, since June, 2018, when drilling began and throughout phase 3. Supervising drilling in the field for drill holes 1 through 10. He examined and reviewed core boxes in the field, supervised moving core boxes to the secure core storage facility located near the Tabasquena mine and was present during logging and sampling of the core and kept control of all sample bags until delivered to the Laboratorio Metalurgico Courtade. He checked and was present during the QA/QC procedures and protocols during the preparation of the samples.

Julio Pinto Linares is a qualified person, doctor in geological sciences with specialty in economic geology and qualified professional No. 01365 by MMSA, for Advance Gold and is the qualified person as defined by National Instrument 43-101 responsible for the accuracy of technical information contained in this news release.

Follow-up drilling plans for oxide zone and depth potential of vein cluster

The next drilling to explore for the boiling zone of the cluster of veins hit in phase 1 and 2, but missed in phase 3, will focus on the down dip and the eastern strike potential. Early interpretation of the vein system showed the system dipping to the west, with most of the holes drilling to the east, to hit the veins perpendicular to the dip.

The cluster of epithermal veins below the oxide zone has been intersected for approximately 150 metres from east to west and approximately 250 metres from north to south. In the next planned program, drilling will focus on intersecting the boiling point of the system and will be focused on testing the variation of grade from surface to 100 metres depth, which is considered the base of the oxide zone. Also, other oxide targets have been delineated on the property, which will be drilled in a subsequent program.

Other news

Advance Gold is pleased to announce the addition of William Atkinson, CPA, CA, to the board of directors as an independent director. Mr. Atkinson is a partner of Atkinson & Company, CPA, and has extensive governance, financial reporting and auditing experience. He is an important addition to the board of directors that enhances the board with his accounting experience working with publicly reporting companies.

Advance Gold will grant 1.9 million stock options to its directors, key employees and consultants entitling them to purchase shares over a five-year term expiring May 1, 2024, at an exercise price of 12 cents per share. Pursuant to the company's stock option plan, it will be a term of each stock option agreement that a mandatory hold period will be imposed upon the sale or disposition of any shares acquired for four months from the date of the grant of the stock options.

About Advance Gold Corp.

Advance Gold is a TSX Venture Exchange-listed junior exploration company focused on acquiring and exploring mineral properties containing precious metals. The company acquired a 100-per-cent interest in the Tabasquena silver mine in Zacatecas, Mexico, in 2017 and the Venaditas project, also in Zacatecas, in April, 2018.

The Tabasquena project is located near the Milagros silver mine near the city of Ojocaliente, Mexico. Benefits at Tabasquena include road access to the claims, power to the claims, a 100-metre underground shaft and underground workings, plus it is a fully permitted mine.

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