VANCOUVER, Dec. 12, 2017 /CNW/ - Leagold Mining
Corporation (TSX:LMC; OTCQX:LMCNF) ("Leagold" or "the Company") has
completed the Bermejal Underground drill program at the Los Filos
mine in Mexico. The program
totalled 56,191 metres in 111 holes. Highlights of 10 new holes
include 7.0 grams per tonne ("gpt") over 16.0 metres, 11.0 gpt over
8.6 metres, and 8.4 gpt over 10.6 metres (all capped grades and
true widths; see Table 1). These results follow 86 holes previously
reported. The remaining 15 holes are in the process of being
sampled and assayed.
Leagold CEO Neil Woodyer stated:
"The large-scale drill program commenced in April and has been
completed on schedule. The program delineated several new areas of
high-grade mineralization and has greatly increased the Measured
and Indicated resources, based on data available as of August 31, 2017. A further update of the Bermejal
Underground mineral resource estimate is in progress and is
expected before year end. In addition, the Bermejal Underground
ramp development has advanced 175 metres to date and is on track to
reach the test mining area in Q2 of next year.
"Operations continue to benefit from improvements made earlier
this year. The agglomerator and new overland conveyor will come on
line in early 2018. With mine production of 173,551 ounces of gold
up to November 30, we remain well
positioned to achieve our full year production guidance of 185,000
to 200,000 ounces."
The Bermejal Underground drill program included 62 drill holes
in the high-grade Central zone, 38 holes in the East zone, and 11
holes in the West zone. All holes intersected mineralization, and a
total of 210 intervals of more than 3 gpt gold over a minimum of 3
metres true width have been reported to date. The multiple
intercepts are due to development of oxide skarn mineralization
along the intrusive contact, and also at the upper and lower
contacts of a shallowly dipping sill that created the opportunity
for the high-grade and wide zone of "sub-sill" mineralization.
The Bermejal Underground deposit is at the northern end of a
large intrusive body which has a total circumference of at least 15
kilometres, providing extensive additional areas for further
exploration. The Bermejal Underground mineralization extends
approximately 1,600 metres along the strike of the intrusive
contact and has a vertical depth extent of over 800 metres.
The Bermejal Underground ramp has advanced 175 metres and the
portal has been completed with steel arches and a concrete floor
(Figure 1). Although this is an exploration ramp, the development
is fully dimensioned for production and permits for production are
in place.
Table 1: Drill Program Highlights for Bermejal Underground
Deposit
Sector
|
Hole
ID
|
Zone
|
Skarn
Type
|
From
(m)
|
To
(m)
|
Length
(m)
|
True Width
(m)
|
Grade
(g/t Au)
|
Capped
(g/t Au)
|
East
|
BU-70A-17
|
UC
|
Exo
|
401.50
|
402.95
|
1.45
|
1.43
|
7.89
|
|
|
and
|
Sill
|
Endo
|
439.50
|
448.90
|
9.40
|
8.83
|
3.74
|
|
|
and
|
LC
|
Exo
|
490.65
|
507.70
|
17.05
|
16.02
|
7.25
|
6.97
|
|
including
|
LC
|
Exo
|
504.85
|
507.70
|
2.85
|
2.68
|
22.63
|
20.98
|
|
and
|
LI
|
Exo
|
560.00
|
562.90
|
2.90
|
2.80
|
3.42
|
|
Central
|
BU-79-17
|
LC
|
Exo
|
555.90
|
558.15
|
2.25
|
2.22
|
5.90
|
|
|
and
|
LC
|
Exo
|
565.90
|
569.85
|
3.95
|
3.89
|
4.98
|
|
|
and
|
LI
|
Exo
|
804.45
|
805.45
|
1.00
|
0.94
|
19.55
|
|
|
and
|
LI
|
Exo
|
807.95
|
812.25
|
4.30
|
4.04
|
8.68
|
|
Central
|
BU-80-17
|
UC
|
Exo
|
429.00
|
433.25
|
4.25
|
4.11
|
4.04
|
|
|
and
|
Sill
|
Endo
|
452.20
|
460.50
|
8.30
|
8.02
|
3.53
|
|
|
including
|
Sill
|
Endo
|
452.20
|
454.50
|
2.30
|
2.22
|
6.06
|
|
|
and
|
Sill
|
Endo
|
492.00
|
498.00
|
6.00
|
5.80
|
3.92
|
|
|
and
|
LI
|
Exo
|
768.60
|
771.60
|
3.00
|
2.46
|
23.63
|
28.28
|
West
|
BU-82-17
|
LI
|
Exo
|
434.70
|
442.40
|
7.70
|
7.44
|
9.96
|
|
East
|
BU-87-17
|
UC
|
Exo
|
368.85
|
372.05
|
3.20
|
2.62
|
4.95
|
|
|
and
|
LC
|
Exo
|
403.20
|
405.90
|
2.70
|
2.07
|
6.66
|
|
Central
|
BU-88-17
|
Sill
|
Endo
|
393.85
|
396.45
|
2.60
|
2.25
|
4.61
|
|
|
and
|
LC
|
Exo
|
414.85
|
418.45
|
3.60
|
3.12
|
4.57
|
|
|
and
|
LI
|
Exo
|
461.95
|
472.90
|
10.95
|
10.58
|
8.36
|
|
West
|
BU-90-17
|
Sill
|
Endo
|
303.40
|
306.30
|
2.90
|
2.89
|
3.44
|
|
|
and
|
LI
|
Exo
|
452.10
|
455.60
|
3.50
|
3.29
|
14.73
|
|
|
and
|
LI
|
Exo
|
475.90
|
478.80
|
2.90
|
2.73
|
3.48
|
|
|
and
|
LI
|
Exo
|
483.10
|
485.75
|
2.65
|
2.56
|
6.01
|
|
West
|
BU-91-17
|
Sill/LC
|
Endo/Exo
|
304.30
|
309.50
|
5.20
|
5.18
|
7.56
|
|
|
and
|
LC
|
Exo
|
391.35
|
398.30
|
6.95
|
6.53
|
6.66
|
|
West
|
BU-96-17
|
LC
|
Exo
|
358.40
|
359.15
|
0.75
|
0.65
|
26.70
|
|
|
and
|
LI
|
Exo
|
413.10
|
417.20
|
4.10
|
3.72
|
3.56
|
|
|
and
|
LI
|
Exo
|
434.50
|
444.40
|
9.90
|
8.57
|
11.00
|
|
NOTES:
|
- Intervals in bold are mentioned in the text of the news
release
- All intercepts are over 3 gpt when diluted to a minimum
true width of 3 metres. Drill hole BU-77-17 intercepted
mineralization but diluted below 3 gpt after diluting to 3
metres
- UC = Upper Contact of Sill; LC = Lower Contact of Sill;
Sill = Oxide within Sill; UI = Intrusive Contact above Junction
with Sill; LI = Intrusive Contact below Junction with Sill
- Individual assays within the intercepts were capped
using 40 gpt limit
|
Figure 1a: Portal and Ramp for Development of Bermejal
Underground
Figure 1b: Portal and Ramp for
Development of Bermejal Underground
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 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 to 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 is building 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 under the trading symbol
"LMC" and trades on the OTCQX market as "LMCNF". The acquisition of
the Los Filos Mine, a low-cost gold producer in Mexico, provides an excellent platform for
growth.
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 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.
SOURCE Leagold Mining Corporation