VANCOUVER, April 12, 2017 /CNW/ - Leagold Mining
Corporation (TSX-V: LMC) ("Leagold" or the "Company") is pleased to
report drilling results at its recently acquired Los Filos Gold
Mine with highlights of 18.5 grams per tonne ("gpt") over 29.2
metres and 12.4 gpt over 21.6 metres, including 17.6 gpt over 9.2
metres (all capped grades and true widths; see Table 1) from the
oxide zone of the Bermejal Underground deposit. These drill
holes were part of an infill and geotechnical program completed in
Q1 2017 and were not included in Leagold's recently filed NI 43-101
Technical Report for the Los Filos Mine.
Neil Woodyer, CEO, stated "The
infill drilling results are exceptional and confirm the widths and
grades in the widest and higher grade portion of the Bermejal
Underground deposit. We are initiating a $7.7 million step-out and infill drilling program
of 56,000 metres to add more resources to Bermejal
Underground. Los Filos currently operates two open pit mines,
Los Filos and Bermejal, and one underground mine at Los
Filos. The Bermejal Underground project presents the
opportunity to develop a second underground mine to both expand
gold production and extend mine life. The results to date
confirm the high quality and significant exploration upside
potential of Bermejal Underground."
Recent Results
Gold iron-oxide skarn mineralization is located along contacts
between intrusive and carbonate host rocks and provides extensive
opportunities at Los Filos for identification and delineation of
additional resources. The mineralization in the Bermejal
Underground deposit remains open in several directions.
The infill drilling program was comprised of seven holes (a
total of 5,570 metres) designed to intersect the Inferred Resources
for conversion to an Indicated classification in a high-grade
portion of the Bermejal Underground deposit. This high-grade zone
of oxide mineralization is along a vertical contact with the
Bermejal intrusive and contains the bulk of the mineral resources
within the Bermejal Underground deposit (Figures 2 and 3).
These resources are located below the intersection of a sill with
the Bermejal intrusive (Figure 3).
A further six geotechnical holes (3,554 metres) were completed
to investigate underground development and mining options as part
of advancing the project. Two of the geotechnical holes
intersected mineralization along the contacts of the sill and at
the intrusive/carbonate contact and are reported here (Table
1). Three of the holes were not drilled in the area of
mineralization and assay results are pending for the final
geotechnical hole.
Table 1: Drilling Program Highlights in Bermejal Underground
Deposit
Sector
|
Hole
ID
|
Zone
|
From
(m)
|
To
(m)
|
Length
(m)
|
True
Width (m)
|
Grade
(g/t Au)
|
Capped
(g/t Au)
|
Central
|
BD-01A-16
|
LC
|
433.10
|
444.35
|
11.25
|
11.25
|
8.0
|
|
|
and
|
VC
|
497.95
|
499.45
|
1.50
|
0.86
|
50.0
|
40.0
|
|
and
|
VC
|
684.45
|
697.20
|
12.75
|
7.27
|
9.8
|
9.2
|
Central
|
BD-02-16
|
UC
|
360.40
|
361.45
|
1.05
|
0.72
|
14.4
|
|
|
and
|
Sill
|
462.00
|
475.35
|
13.35
|
6.27
|
4.8
|
|
|
and
|
Sill
|
488.35
|
489.85
|
1.50
|
1.11
|
9.3
|
|
|
and
|
VC
|
500.35
|
542.55
|
42.20
|
14.35
|
9.3
|
|
|
and
|
VC
|
585.15
|
671.05
|
85.90
|
29.21
|
25.3
|
18.5
|
Central
|
BD-03-16
|
Sill
|
295.10
|
299.00
|
3.90
|
2.77
|
8.0
|
|
Central
|
BD-04-16
|
UC
|
309.65
|
311.05
|
1.40
|
1.37
|
6.1
|
|
|
and
|
Sill
|
399.55
|
404.05
|
4.50
|
4.37
|
5.5
|
|
|
and
|
Sill
|
416.75
|
425.70
|
8.95
|
8.68
|
12.4
|
|
|
and
|
VC
|
523.55
|
524.60
|
1.05
|
1.02
|
25.3
|
|
|
and
|
VC
|
654.20
|
658.35
|
4.15
|
2.66
|
6.5
|
|
Central
|
BD-05-16
|
UC
|
468.40
|
476.90
|
8.50
|
7.98
|
19.5
|
10.6
|
|
including
|
UC
|
473.20
|
476.90
|
3.70
|
3.47
|
36.3
|
15.9
|
|
and
|
Sill
|
486.05
|
489.80
|
3.75
|
3.52
|
5.1
|
|
|
and
|
Sill
|
503.30
|
506.40
|
3.10
|
2.90
|
4.2
|
|
|
and
|
LC
|
561.55
|
564.20
|
2.65
|
1.33
|
10.8
|
|
|
and
|
VC
|
582.00
|
587.50
|
5.50
|
2.75
|
11.3
|
|
|
and
|
VC
|
595.70
|
638.80
|
43.10
|
21.55
|
13.0
|
12.4
|
|
including
|
VC
|
595.70
|
598.25
|
2.55
|
1.27
|
7.7
|
|
|
including
|
VC
|
602.35
|
609.05
|
6.70
|
3.35
|
13.0
|
|
|
including
|
VC
|
613.55
|
632.00
|
18.45
|
9.23
|
19.2
|
17.6
|
|
including
|
VC
|
633.80
|
638.80
|
5.00
|
2.50
|
14.8
|
|
|
and
|
VC
|
695.25
|
696.90
|
1.65
|
0.42
|
17.7
|
|
Central
|
BD-06-16
|
Sill
|
376.20
|
378.75
|
2.55
|
1.95
|
13.6
|
|
|
and
|
Sill
|
400.75
|
403.60
|
2.85
|
2.18
|
7.6
|
|
East
|
BD-07-16
|
LC
|
553.50
|
556.45
|
2.95
|
2.85
|
22.3
|
|
|
and
|
VC
|
600.10
|
612.25
|
12.15
|
8.63
|
15.1
|
|
Central
|
BDG-02-16
|
LC
|
489.85
|
527.10
|
37.25
|
6.33
|
8.4
|
|
|
including
|
LC
|
498.10
|
520.30
|
22.20
|
3.77
|
12.0
|
|
|
and
|
VC
|
550.30
|
595.65
|
45.35
|
7.71
|
21.7
|
19.8
|
|
including
|
VC
|
553.35
|
583.75
|
30.40
|
5.17
|
29.7
|
26.8
|
West
|
BDG-03-16
|
LC
|
339.15
|
340.40
|
1.25
|
1.17
|
10.1
|
|
|
and
|
LC
|
343.50
|
344.00
|
0.50
|
0.47
|
79.2
|
40.0
|
|
and
|
Sill
|
444.05
|
445.55
|
1.50
|
1.46
|
12.8
|
|
|
and
|
VC
|
488.95
|
500.70
|
11.75
|
11.45
|
10.8
|
|
NOTES:
|
Intervals in bold are
shown on cross sections or mentioned in the text of the news
release
|
|
UC = Upper Contact of
Sill; LC = Lower Contact of Sill; Sill = Oxide within Sill; VC =
Vertical Contact on Intrusive
|
|
Only Intercepts with
over 3 gpt and diluted to a minimum true width of 3 metres are
shown
|
|
Individual assays
within the intercepts were capped using 40 g/t limit
|
New Drilling Program
Leagold is commencing a $7.7M
drilling program in Q2 2017 of 56,000 metres, targeting step-out
and infill drilling, to expand the known Bermejal Underground
resource base and to increase resource classification in support of
future feasibility level studies and capital investment decisions
(Figure 4). Drill holes are planned to intersect oxide
mineralized zones at the steeply dipping to vertical contact of the
Bermejal intrusive with carbonate as well as the upper and lower
contacts of the sill.
The program includes the use of reverse circulation (RC)
drilling in the upper portions of holes followed by diamond
drilling "tails" to the end of hole in order to provide more rapid
completion of the program and to reduce drilling costs. The
program will be completed in 2017.
Additional opportunities for drilling are evident on the west
side and the southeast trend of the contact of the Bermejal
Intrusive.
Bermejal Underground Project
The drilling results are reported for the oxide zone located at
the contact of intrusives with carbonate rocks.
Mineralization is gold in iron oxides and is amenable to heap
leaching (current recoveries for similar material is 80% from the
existing heap leach operation).
The Bermejal deposit extends to at least 600 metres below the
current Bermejal Open Pit and has been examined as an underground
opportunity due to the high strip ratio that would be required for
an open pit to mine the entire mineral resource. The Bermejal
Underground resource, as reported in the March 1, 2017 Technical Report and PEA
("Preliminary Economic Assessment") report, is presented in Table
2. The Bermejal Underground deposit is entirely below and
separate from the current Bermejal Open Pit Mineral Reserves.
Bermejal Underground Measured and Indicated Mineral Resource
consists of 4.74 million tonnes at 6.65 gpt Au containing 1.012
million ounces plus Inferred Mineral Resource of 4.17 million
tonnes at 5.05 gpt Au containing 0.678 million ounces (Stantec,
March 1, 2017).
Table 2 – Bermejal Underground Mineral
Resource1-5 in the PEA
Classification
|
Tonnes
(kt)
|
Au Grade
(g/t)
|
Au Contained
(koz)
|
Ag Grade
(g/t)
|
Ag Contained
(koz)
|
Measured
|
13
|
5.08
|
2
|
49.27
|
21
|
Indicated
|
4,722
|
6.65
|
1,009
|
22.30
|
3,385
|
Total Measured and
Indicated
|
4,735
|
6.65
|
1,012
|
22.37
|
3,406
|
Inferred
|
4,173
|
5.05
|
678
|
26.55
|
3,563
|
Notes:
|
1.
|
Effective date is
December 31, 2016.
|
2.
|
Mineral Resources are
reported to a gold price of US$1,400/oz.
|
3.
|
Mineral Resources are
inclusive of Mineral Reserves.
|
4.
|
Mineral Resources do
not include recovery or dilution factors.
|
5.
|
Tonnages are rounded
to the nearest 1 kt, grades are rounded to two decimal places;
rounding, as required by reporting guidelines, may result in
apparent summation differences.
|
Qualified Persons
Doug Reddy, P.Geo, Leagold's
Senior Vice President – Technical Services, is a Qualified Person
under NI 43-101, and has reviewed and approved the technical
contents of this news release on behalf of Leagold.
The Qualified Persons for the resource estimates as reported in
the Technical Report dated March 1,
2017 are William A. Glover,
P.Eng. and Allan L. Schappert, CPG,
of Stantec Consulting International LLC ("Stantec"). Mr.
Glover and Mr. Schappert are each a "qualified person" as defined
in NI 43-101 and independent of the Company.
Los Filos Mine employs industry standard drilling and sampling
procedures. All exploration samples are sent to an ALS Global
facility in Guadalajara for
preparation and Vancouver for
analyses by fire assay and ICP. A full quality control and
assurance program and protocols are in place and are aligned with
best practices including regular insertion of certified reference
standards, blanks, and duplicates.
About Leagold Mining Corporation
Leagold aims to build a new mid-tier gold producer with a focus
on opportunities in Latin America. Leagold is based in
Vancouver, Canada and is listed on
the TSX Venture Exchange under the trading symbol "LMC". The
recent acquisition of the Los Filos Mine, a low-cost gold producer
in Mexico, provides an excellent
platform for growth.
On behalf of Leagold Mining Corporation
Neil Woodyer, Chief Executive
Officer
This news release contains "forward-looking statements" and
"forward looking information" (as defined under applicable
securities laws), including but not limited to plans for future
development of the Los Filos Mine. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "expects", "expected", "budgeted", "forecasts"
and "anticipates". Forward-looking statements and information,
while based on management's best estimates and assumptions, are
subject to risks and uncertainties that may cause actual results to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to the receipt of all necessary approvals for conversion of
the Orion Subscription Receipts; risks related to the Los Filos
Mine, risks related to the successful integration of the
acquisition; risks related to international operations; risks
related to general economic conditions and credit availability,
actual results of current exploration activities, unanticipated
reclamation expenses; changes in project parameters as plans
continue to be refined; fluctuations in prices of metals including
gold; fluctuations in foreign currency exchange rates, increases in
market prices of mining consumables, possible variations in ore
reserves, grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes,
title disputes, claims and limitations on insurance coverage and
other risks of the mining industry; delays in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which Leagold operates. Although Leagold has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. The forward-looking statements and forward looking
information are made as of the date hereof and Leagold disclaims
any obligation to update any such factors or to publicly announce
the result of any revisions to any of the forward-looking
statements or forward looking information contained herein to
reflect future results. Accordingly, readers should not place undue
reliance on forward-looking statements and information.
Please refer to Leagold's most recent filings under its profile at
www.sedar.com for further information respecting the risks
affecting Leagold and its business.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Leagold Mining Corporation