Toachi Mining Inc. Intersects 15.89 m grading 7.63 g/t Au, 49.74 g/t Ag, 2.4% Cu, 11.82% Zn and 0.97% Pb at the Gold-Rich La Plata VMS Project in Ecuador
TORONTO, Jan. 9, 2017 /CNW/ - Toachi Mining Inc., ("Toachi" or the "Company") (TSX-V: TIM) is pleased to announce results from on-going drilling at its La Plata gold-rich volcanogenic massive sulphide ("VMS") project in Ecuador.
- Hole CMLP-16-14 intersected 15.89 metres (m) of massive and disseminated sulphide mineralization grading 7.63 grams per tonne (g/t) gold, 49.74 g/t silver, 2.40% copper, 11.82% zinc and 0.97% lead from 135.57 m.
- Included within this zone is a higher grading interval of 2.96 m grading 10.17 g/t gold, 48.09 g/t silver, 4.13% copper, 26.78% zinc and 0.70% lead from 140.21 m.
- Hole CMLP-16-20 intersected 2.31 m of massive and disseminated sulphide mineralization grading 2.55 g/t gold, 60.99 g/t silver, 7.61% copper, 6.92% zinc and 0.74% lead from 30 m.
- This intersection is within a wider 9.38 m zone grading 1.15 g/t gold, 20.89 g/t silver, 3.28% copper, 1.9% zinc and 0.2% lead from 23.95 m to 33.33 m.
- Hole CMLP-16-17, collared to the east of CMLP-16-20 intersected 7.10 m of massive sulphide and brecciated mineralization, grading 1.25 g/t gold, 43.14 g/t silver, 2.42% copper, 8.28% zinc and 1.08% lead from 23.55 m.
- Holes CMLP-16-14, CMLP-16-17 and CMLP-16-20 were collared to test for extensions of near surface mineralization intersected in hole CMLP-16-04 which returned 5.3 m grading 5.19 g/t gold, 40.24 g/t silver, 3.15% copper, 8.98% zinc and 0.59% lead from a shallow depth of 45.7 m in the vicinity of the former open pit.
- Initial modelling of this near surface mineralization suggests it represents mineralization not included in the historic polygonal resource estimates and lies above those mineralized blocks.
- Hole CMLP-16-08 collared in the La Mina southern block intersected 1.79 m massive sulphide mineralization grading 10.00 g/t gold, 88.36 g/t silver, 0.36% copper, 6.50% zinc and 3.15% lead from 293.31 m.
- Hole CMLP-16-09 collared within the hinge zone in the La Mina southern block intersected a narrow 0.78-m high grade zone assaying 20.67 g/t gold, 50.0 g/t silver, 5.78% copper, 5.85% zinc and 0.43% lead from 374.1 m.
|From (m)||To (m)||m||Au (g/t)||Ag (g/t)||Cu (%)||Pb (%)||Zn (%)||Au Eq (g/t)|
|1)||Core widths in CMLP-16-08, CMLP-16-09, CMLP-16-17 and CMLP-16-20 are considered close to true widths. Core widths in CMLP-16-14 are considered orthogonal to the mineralized zone. Gold assay composites were calculated using uncut assays. Gold equivalent values were calculated using a cut-off grade of 2 g Au/tonne and based on the following metal prices in US$: Au $1,310, Ag $18.75, Cu $2.15, Pb $0.875 and Zn $1.00|
|2)||A complete list of all intersections are available in Table 1 below along with a plan map and cross section of CMLP-016-13, CMLP-16-15 and CMLP-16-20|
The drill program, which began in August 2016, is designed to validate the historic drilling database at the La Plata project. The drilling program is intended to infill and expand known resources in the main La Mina VMS lenses leading to the completion of a National Instrument 43-101 compliant resource estimate in 2017.
"Our drilling is continuing to outline high grade mineralization at La Plata. Testing the potential for outlining high grade near surface mineralization amenable to open pit mining, will be one of our objectives for the coming year," Nick Tintor, President and CEO said.
Hole CMLP-16-20 was collared to test for near surface mineralization in the area of the former open pit mine at La Mina which saw small scale mining from 1975-1981. This hole is part of a group of eight drill holes designed to follow up results from hole CMLP-16-04, which was reported earlier. (See Toachi Mining Press Release dated October 26, 2016).
Management believes the La Plata project, which is characterized by geology typical of major gold-rich VMS camps around the world, hosts excellent potential for the discovery of additional discrete VMS zones amongst the 14 exploration targets identified to date.
Metallurgical Optimization Program
Toachi has also initiated a first phase metallurgical optimization program under the supervision of Dr. Simon Meik.
Samples representative of different mineralized lithologies from the La Mina deposit have been shipped to SGS Lakefield Research Limited in Lakefield, Ontario, Canada.
Dr. Meik has spent the past 13 years as Corporate Director – Processing with Dundee Precious Metals ("DPM") where he was responsible for managing all aspects of DPM's processing operations and annual production of 400,000 tonnes of copper, zinc and gold concentrates. During his career, Dr. Meik was also Chief Process Engineer at BHP's Antofagasta copper mine in Chile and Assistant Superintendent at Southern Peru Copper's Cuajone concentrator in Peru.
"We are extremely pleased to have a person of Simon's caliber and expertise in metallurgy and processing of suphide concentrates, managing the La Plata project's metallurgical optimization program," Jonathan Goodman, Chairman said. "I have worked with Simon for many years in the past and look forward to working with him again at La Plata," he added.
La Plata Deposit Geology
Gold-bearing sulphide mineralization at La Plata occurs as compositional banding composed of chalcopyrite, sphalerite and pyrite laminae with barite occurring as clasts and also as thin layers.
Base and precious metal mineralization at La Plata is interpreted to have formed as part of multiple volcanic episodes that created a stacked volcanic-exhalite hydrothermal sequence which is considered favorable for hosting multiple VMS lenses.
Examples of this exclusive group of gold-rich VMS camps include Noranda, Doyon-Bousquet-LaRonde and the Flin Flon camps in Canada.
Toachi's exploration staff has identified more than 14 discrete exploration targets across the property concessions which extend for more than 9 kilometres, attesting to the potential of this emerging district.
The La Plata Project
Toachi entered into an option agreement with a private Ecuadorean company to earn between a 60% to 75% interest in the La Plata gold-copper-silver-zinc VMS project, located 85 km south of Quito, Ecuador.
For complete terms of the transaction, please see our press release dated February 11, 2016 which is available on our website at www.toachimining.com or on www.sedar.com.
La Plata is a gold-rich volcanogenic massive sulphide deposit which was the subject of small scale mining from both an open pit and underground workings from 1975-1981.
From 1996 to 2000, Cambior Inc., a Canadian mining company, completed 8,628 metres of drilling and a preliminary resource estimate totaling 840,000 tonnes grading 4.8 grams gold per tonne, 4.1% copper, 54.4 grams silver per tonne and 0.7% lead and 4.2% zinc per tonne in 1999, according to a report completed by AMEC Foster Wheeler, a mining consulting firm, in March 2015.
Following a drill program by Cornerstone Capital Resources Inc., which included 5,933 metres of drilling from 2006-2007, a revised mineral resource estimate totaling 913,977 tonnes grading 8.01 grams gold per tonne, 88.3 grams silver per tonne, 5.01% copper, 6.71% zinc and 0.78% lead per tonne in the inferred category was completed.
The resource estimates described above are historical estimates as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects S.2.4 ("NI 43-101").
Toachi has not completed the work required to independently analyze and verify the results of the previous operators nor has a qualified person completed sufficient work to classify the estimates as current mineral resources or mineral reserves. With respect to the Cambior estimate, the Company is also not aware of what categories were used in the estimate. As a result, Toachi is not treating these estimates as current mineral resources or mineral reserves.
The Company believes these historic results provide an indication of the potential of the property and are relevant from an on-going exploration perspective.
QA/QC Sampling and Core Sampling Protocols
Before sampling, a centreline, representing bottom of hole (or a reference line when this is not known) is marked on the drill core. The core is cut and sampled, always sampling the right-hand side of the drill core. Samples are selected based on logged geological features, such as rock type, mineralization, alteration, veining etc. Sample length does not exceed 1.2 m nor is smaller than 20 cm. In areas of similar geological characteristics, sample length is, in general, 1 m.
A total of 10% of the samples submitted are certified blanks and standards and field duplicates with, as a minimum, one blank submitted at the beginning of each sample batch. Certified standards are submitted at an average of 6% of the samples submitted. Field duplicates are taken at a rate of 1 in 20 of the samples taken.
For all drill holes, with the exception of CMLP-16-04, analysis was completed by ALS Peru S.A. with sample preparation completed in Quito. The lab is accredited with International Standards ISO/IEC 17025:2005 and ISO 9001:2015.
All major ALS Geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.
For drill hole CMLP-16-04, analysis was completed by MS Analytical in Canada, with preparation performed by Ecuadorian partner, LAC y Asociados. Both LAC y Asociados and MSA are ISO 9001:2008 registered companies. MS Analytical also meets the requirements as outlined in ISO/IEC 17025.
Phil Fox, MAIG, a Qualified Person as defined by NI 43-101, has reviewed and approved the contents of this press release
About Toachi Mining Inc.
Toachi brings a disciplined and veteran team of project managers together with a high grade gold-copper-silver-zinc project at La Plata in Ecuador. Toachi is focused on and committed to the development of advanced stage mineral projects throughout the Americas using industry best practices combined with a strong social license from local communities. Toachi Mining has 50,974,935 shares issued and outstanding.