Magna Terra Minerals Reports Thick Intercept of Near-Surface Gold Oxide at the 100% Owned Luna Roja Project
TSX VENTURE: MTT
TORONTO, April 16, 2019 (GLOBE NEWSWIRE) -- Magna Terra Minerals Inc. (the “Company” or “Magna Terra”) (TSX-V: MTT) (SSE: MTTCL) is pleased to announce assay results representing vertically zoned epithermal Gold Mineralization from an eight hole (1,184 meter) first phase drill program on its Luna Roja Project in Santa Cruz Province, Argentina. The drilling began on January 12, 2019 and was completed on January 31. The program was designed to test three target areas – Cruz Del Sur, Orion and Estrella del Norte, which constitute a mineralized surface footprint of approximately three kilometers by one kilometer. Assays have been received from three holes in the Cruz del Sur Target area and from one hole in the Estrella del Norte area. The company is still waiting for assays from another four holes.
Drill hole LR_DDH002 intersected 75.0 m of 0.62 g/t Au and 5.6 g/t Ag (from 37.0 m to 112.0 m). The deepest part of the zone, which is oxidized, included 42.0 m of 1.01 g/t Au and 4.6 g/t Ag (from 68.0 m to 110.0 m - Table 1), indicating increased grade with depth.
“The mineralisation from the first two holes in the campaign is highly significant because it shows upgrading of tenor by 2.5 times at only 50 meters depth relative to the trench samples. We are very encouraged to have significant intercepts in two out of the three holes from the initial program at Cruz del Sur. The first two holes combine to give a significant strike length of shallow, disseminated mineralization with much of which is oxidized, implying potential for early definition of a low-cost bulk minable resource”
- Dr. Paul David Robinson, Vice President of Exploration
The mineralization is disseminated in lithic crystal tuffs and rhyolitic crystal tuffs in the hanging wall of the Via Lactea fault zone. This hole was collared 145 m to the NNW of hole LR_DDH001, which reported 51.4 m of 0.26 g/t Au and 9.7 g/t Ag, including 2 m of 1.08 g/t Au and 79.6 g/t Ag. These two holes are the only holes testing the Via Lactea Fault zone, which is recessive and associated with surface Gold, Silver and trace element anomalies along its 3 km N-NW strike. Mineralization remains open-ended in all directions along the Via Lactea fault.
Assays have also been received for two additional holes, one testing an IP chargeability anomaly in the Cruz del Sur area, and the other testing an IP chargeability anomaly in the Estrella del Norte area. These two holes did not return notable intercepts (Table 1). Assays for the remaining holes (holes LR_DDH004, 5, 6, and 8) are pending.
Key Characteristics of Luna Roja
- Long, 75-meter intercept of 0.62 g/t Au, suggests possibility of bulk minable potential
- A 42-meter oxidized intercept of 1.01 g/t Au suggests potential for high gold recovery (see Figure 1 b)
- Shallow mineralization, between surface and 80 meters vertical depth, offers the possibility of an open pit operation
- Mineralized strike length of 145 meters between LR_DDH001 and LR_DDH002 shows potential for continuity along the Via Lactea structural zone
- Mineralized surface strike length of 3 Km on the Via Lactea Fault system shows strong potential considering that only 145 meters of the fault system has been drill tested to date
- Favorable tuffaceous stratigraphy to the West, hanging wall side, of the Via Lactea Fault system, is thus far un-tested
- Rhyolitic and tuffaceous dome complex to the East of Via Lactea is silicified and has multiple geophysical targets
- The concept of targeting disseminated Gold in tuffs is a new paradigm for the Deseado Massif, but the Luna Roja mineralization is more analogous of Round Mountain in Nevada than it is to any of the operating mines in Santa Cruz
The Cruz del Sur Target
The Cruz del Sur target lies toward the southern end of the project, on the Via Lactea fault, and is associated with Au in rock chips and Trench channel samples on the southwestern edge of a major rhyolitic and tuffaceous dome complex. (see Figure 1 a).
LR_DDH001 and LR_DDH002 target structurally controlled mineralization beneath wide Au anomalies in Trenches 1 and 2. Figure 2 illustrates a West-East cross section, which includes LR_DDH002 and LR_DDH003 where LR_DDH003 is a geophysical target and is collared 280 meters to the East of LR_DDH002. Trench 2 reported 55 meters of 0.41 g/t Au and 13.2 g/t Ag which occurs above the LR_DDH002 intercept and is structurally related to the oxidized zone of 1.01 g/t Au between 47 and 78 meters vertical depth. Mineralization appears to be controlled largely by the high permeability of the tuffaceous units to the West of the Via Lactea Fault, implying that the system is open in that direction. LR_DDH003 did not return reportable Au or Ag anomalies but was anomalous in Arsenic along much of its length as well as having traces of Antimony. Despite the distance East from hole LR_DDH002, this hole remains within the mineralized system and is potentially close to the Au mineralization.
Trench 1 reported 25 meters of 0.1 g/t Au and 7.6 g/t Ag which occurs above the LR_DDH001 intercept and is structurally related to the mineralized zone with 0.26 g/t Au and 9.7 g/t Ag between 30- and 70-meters vertical depth. (See Figure 3).
Table 1: Drill hole collar details
|LR_DDH001||Cruz del Sur||589080||4759260||236||90||45||203|
|LR_DDH002||Cruz del Sur||589040||4759400||240||90||45||215|
|LR_DDH003||Cruz del Sur||589320||4759400||247||90||65||173|
|LR_DDH007||Estrella del Norte||588900||4760950||250||270||60||74|
|LR_DDH008||Estrella del Norte||588700||4760950||237||90||60||92|
Table 2: Drill assay results for LR_DDH_001, 2, 3 and 7 (with 0.2 g/t Au cut-off grade)
Sampling was carried out with core being cut by angle grinder and half of the core retained for logging and potential re-analysis. Blind standards, blanks, and duplicates were inserted into the sample chain accounting for 10 % of samples. Samples were then delivered, by Magna Terra staff, to Andesmar in Caleta Olivia, Santa Cruz, Argentina from where they were transported to ALS Chemex Laboratories in Mendoza, Argentina, for gold fire assay and multi element analysis.
All technical data disclosed in this press release has been verified by Magna Terra’s Qualified Person, Paul D. Robinson Ph.D. and Certified Professional Geologist as recognized by the Association of Professional Geoscientists of Ontario (APGO).
Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. Magna Terra (MTT) has a significant interest in the province of Santa Cruz, Argentina within the prolific Deseado Massif in southern Patagonia. With five district scale drill ready projects, and a highly experienced management and exploration team, MTT is positioned to deliver significant shareholder value through the potential for precious metals discovery(s) on its extensive portfolio. For detailed information regarding our projects, please visit the Company’s website at: www.magnaterraminerals.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward Looking Information
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure by the parties to complete the Transaction, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company’s public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
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