Fredonia Mining Inc. (“
Fredonia” or the
“
Company”) (TSXV:FRED) announces successful
completion of its phase III drilling program, with results of the
remaining 6 HQ diamond drill holes totaling 1,143.00 m. drilled at
the Northern Monserrat sector of its EDM project. The phase III
drill program included an aggregate of 12 holes for a total of
2,955 m – 6 holes in the southern Herradura Hill target (see
Fredonia news release dated January 31st, 2023) and the last 6
holes at the Northern Monserrat sector (drilled at the Main Veins,
Bajo Pedernal and Monserrat West targets).
“We are very encouraged to learn that the Bajo
Pedernal target, which joins the Monserrat West target to the Main
Veins target, has multiple veins under modern rock cover, with
potential to host high-grade ore shoots, similar to those already
detected at the Main Veins and Monserrat West targets,” said
Estanislao Auriemma, Chief Executive Officer of Fredonia. “Also
very pleased to learn that the strike of the veins continues to the
north under the post-mineral basalt flow, which indicates a
significant increase in the mineralized area at the EDM project.
The high-grades of gold and silver drilled in the Northern
Monserrat sector, and those drilled at the Herradura Hill target in
this current exploration program, confirm the growing potential of
the EDM project.”
This phase III drill program was design to cover
two targets within the Northern Monserrat sector:
- A four-hole fence completes a full
1.1 km long cross-section to encompass a large unexposed Bajo
Pedernal target covered by modern rocks. This cross-section spans
the area between the Main Veins and Monserrat West targets.
- The drill-hole fence intercepted
multiple zones of stockworks, veins and breccias containing high-
grade of gold and silver, with 0.60m @ 6.18 g/t Au
Eq. at BPDDH001. The new intercepts added to the
historical intercepts at Main Veins and Monserrat West, in the
Northern Monserrat sector. (see Figure 3).
The two additional drill holes at the Main Veins
target extend its strike and open the system to the north, under
the basalt flow, intersecting a wide ore shoot with high-grade -
4.00m @ 1.66 g/t Au Eq. and 4.00m @ 1.49
g/t Au Eq at MVDDH078. (see Figure 4).
Figure 1: Map showing the location of
the main targets at the Northern Monserrat sector - El Dorado
Monserrat gold-silver project (6,200 ha licenses).
The Northern Monserrat sector comprises an area
3.5 km long by 3.2 km wide, made up of mineralized corridors hosted
in andesitic lavas that form country rock, and contains more than
20 kilometers of epithermal veins, not all of which have been
explored or drilled. There is evidence of buried veins unexplored
or as extensions to understand the vein systems. All prospects
discovered up to date have not been limited along strike or
dip.
Two different strikes of faults host the
mineralization: north-south "horst and graben" faults, and NW-SW
shear faults. The crossings, nodes, and inflexion between both
structures control the location of the high-grade gold and silver
ore shoots, and reveal the potential at the Northern Monserrat
sector.
Figure 2: Map showing drill holes
location and intercepts at the Northern Monserrat
sector:
Table I. Drill-hole
statistics:
|
Drill Hole |
Target |
Easting |
Northing |
Altitude |
Azimuth |
Dip |
EOH |
|
BPDDH001 |
Bajo Pedernal |
2529054 |
4637900 |
223 |
279 |
-45 |
200.00 |
|
BPDDH002 |
Bajo Pedernal |
2528900 |
4637900 |
214 |
279 |
-45 |
221.00 |
|
BPDDH003 |
Bajo Pedernal |
2528750 |
4637900 |
211 |
279 |
-45 |
302.00 |
|
BPDDH004 |
Bajo Pedernal |
2528450 |
4637900 |
214 |
279 |
-45 |
302.00 |
|
MVDDH077 |
Main Veins |
2529555 |
4639429 |
222 |
110 |
-45 |
56.00 |
|
MVDDH078 |
Main Veins |
2529538 |
4639184 |
201 |
79 |
-60 |
62.00 |
|
Total: |
|
|
|
|
|
|
1,143.00 |
Table II. The intercepts of current
Phase III drilling at Bajo Pedernal and Main Veins Targets -
Northern Monserrat sector, are shown below:
|
Hole ID |
Target |
From |
To |
Length(*) |
Au Eq g/t(**) |
Au g/t |
Ag g/t |
|
BPDDH001 |
Bajo Pedernal |
92.50 |
93.10 |
0.60 |
6.18 |
5.98 |
14.91 |
|
BPDDH001 |
Bajo Pedernal |
106.00 |
106.50 |
0.50 |
1.39 |
0.43 |
72.28 |
|
BPDDH002 |
Bajo Pedernal |
126.70 |
127.00 |
0.30 |
3.04 |
0.14 |
217.18 |
|
BPDDH003 |
Bajo Pedernal |
79.50 |
80.00 |
0.50 |
1.39 |
0.02 |
102.69 |
|
BPDDH003 |
Bajo Pedernal |
214.00 |
214.50 |
0.50 |
1.04 |
0.30 |
55.73 |
|
BPDDH004 |
Bajo Pedernal |
246.00 |
247.00 |
1.00 |
2.87 |
0.02 |
213.55 |
|
MVDDH077 |
Main Veins |
25.00 |
28.00 |
3.00 |
1.41 |
1.24 |
12.62 |
|
including |
Main Veins |
25.00 |
26.00 |
1.00 |
3.24 |
3.02 |
16.65 |
|
MVDDH078 |
Main Veins |
4.50 |
8.50 |
4.00 |
1.66 |
0.81 |
63.81 |
|
including |
Main Veins |
4.50 |
5.00 |
0.50 |
3.18 |
0.73 |
184.05 |
|
and |
Main Veins |
7.00 |
8.50 |
1.50 |
2.56 |
1.79 |
58.30 |
|
MVDDH078 |
Main Veins |
18.50 |
22.50 |
4.00 |
1.49 |
0.90 |
43.98 |
|
including |
Main Veins |
19.50 |
20.50 |
1.00 |
2.46 |
1.78 |
51.50 |
(*) Reported interval lengths are
down-hole widths and not true widths.(**) Gold
equivalent (“Au Eq.”) is calculated using metal prices of US$
1,800/oz for Au and US$ 24/oz for Ag. The equation used is: Au Eq
g/t = Au g/t + (Ag g/t ÷ 75).Au Eq assumes Au
recovery of 90%. The limited metallurgical studies by Fredonia
(selective Bottle rolls from Main Veins material) have indicated
high (>90%) recovery of gold in oxide material. The Cerro
Vanguardia mine to the east of EDM with similar mineralization
reports recoveries in the high 90% for Au.
Main Veins Target
To the east, the current drill-hole fence
integrated with Main Veins target has received most of the
historical exploration focus and remains as an advanced target of
merit. Main Veins extends for over 2.0 km long and a 25 m wide. The
mineralization show multiple ore shoots open at depth, with
subvertical plunge that has been tested down to -200 m below the
surface, and remains open significantly to the north and at depth.
To the south the Main Veins target merges with the Abanico target
veins field.
The Main Vein target has received the most
drilling thus far, including:
Table III. Historical drill holes
intercepts (reported in Fredonia’s technical report dated
February 15th,
2021) from Main Vein Target - Northern Monserrat
sector shown below:
|
Hole ID |
Target |
From |
To |
Interval |
Au Eq g/t |
Au_ppm |
Ag_ppm |
|
(*) |
(**) |
|
MVDDH006 |
Main Veins |
82 |
88 |
6 |
14.43 |
4.41 |
751.67 |
|
MVDDH062 |
Main Veins |
106 |
112 |
6 |
7.37 |
6.54 |
61.99 |
|
MVDDH018 |
Main Veins |
51.5 |
53.15 |
1.65 |
23.83 |
16.75 |
531.03 |
|
MVDDH011 |
Main Veins |
76.6 |
77.5 |
0.9 |
32.98 |
15.59 |
1304.14 |
|
MVDDH001 |
Main Veins |
85 |
86 |
1 |
27.57 |
26.85 |
53.71 |
|
MVDDH041 |
Main Veins |
71 |
75 |
4 |
6.05 |
5.25 |
59.88 |
|
MVDDH004 |
Main Veins |
36 |
37.5 |
1.5 |
14.71 |
12.12 |
193.91 |
|
MVDDH007 |
Main Veins |
67 |
68 |
1 |
16.1 |
14.59 |
113.25 |
|
MVDDH029 |
Main Veins |
59 |
59.5 |
0.5 |
30.28 |
1.05 |
2192.53 |
|
MVDDH039 |
Main Veins |
160 |
162 |
2 |
7.2 |
6.08 |
83.96 |
|
MVDDH046 |
Main Veins |
131 |
133 |
2 |
7.07 |
6.71 |
27.34 |
|
MVDDH054 |
Main Veins |
49.5 |
53.5 |
4 |
3.51 |
3.11 |
30.11 |
|
MVDDH053 |
Main Veins |
123 |
125 |
2 |
6.9 |
6.36 |
40.23 |
|
MVDDH023 |
Main Veins |
162.4 |
164 |
1.6 |
8.55 |
7.44 |
83.47 |
|
MVDDH021 |
Main Veins |
94.15 |
95.8 |
1.65 |
7.81 |
7.26 |
40.93 |
|
MVDDH039 |
Main Veins |
146 |
148 |
2 |
5.98 |
5.43 |
41.61 |
|
MVDDH043 |
Main Veins |
29 |
30.5 |
1.5 |
7.72 |
7.24 |
35.88 |
|
MVDDH027 |
Main Veins |
48.85 |
52.5 |
3.65 |
3.13 |
1.48 |
123.49 |
|
MVDDH051 |
Main Veins |
130 |
134 |
4 |
2.84 |
1.77 |
80.12 |
|
MVDDH020 |
Main Veins |
47 |
49 |
2 |
5.65 |
4.49 |
86.87 |
|
MVDDH058 |
Main Veins |
43 |
46 |
3 |
3.61 |
1.79 |
136.61 |
|
MVDDH070 |
Main Veins |
79 |
81 |
2 |
5.01 |
1.72 |
246.94 |
|
MVDDH019 |
Main Veins |
135 |
136 |
1 |
9.55 |
0.08 |
710.55 |
|
MVDDH061 |
Main Vein |
52 |
56 |
4 |
1.38 |
1.14 |
17.92 |
|
MVDDH005 |
Main Vein |
124 |
125 |
1 |
3.77 |
3.64 |
10 |
|
MVDDH028 |
Main Vein |
53 |
54 |
1 |
3.55 |
3.34 |
16.01 |
|
MVDDH052 |
Main Vein |
84 |
85 |
1 |
3.44 |
3.22 |
16.1 |
|
MVDDH040 |
Main Vein |
58.5 |
59 |
0.5 |
4.14 |
1.99 |
161.09 |
|
MVDDH017 |
Main Vein |
242.6 |
243 |
0.4 |
4.86 |
2.13 |
204.55 |
|
MVDDH002 |
Main Vein |
124 |
125 |
1 |
1.77 |
1.54 |
17.28 |
|
MVDDH005 |
Main Vein |
118 |
119 |
1 |
1.68 |
1.64 |
3.61 |
Monserrat West Target
To the west, the drill-hole fence integrating
with Monserrat West target is located on a north-south
dilatational, 1.6km long corridor that contains ore shoots
expressed as veining and brecciation, that open in both directions.
The sparce surface expression is characterized by a silica cap,
secondary oxidation, leaching, breccia and residual quartz
textures. The historical drill holes intersected the target
structure and contain high-grade significant gold and silver
intervals demonstrating the potential for further strike and down
dip extension, but also the possibility of further high-grade gold
and silver ore shoot zones.
Table IV. Historical drill holes
intercepts (reported in Fredonia news release dated January
20th, 2022) from Monserrat West
and Bajo Pedernal targets - Northern Monserrat sector, shown
below:
|
Hole ID |
Target |
From |
To |
Interval (*) |
Au Eq g/t (**) |
Au g/t |
Ag g/t |
|
MODDH001 |
Monserrat West |
174.3 |
176.7 |
2.4 |
18.05 |
0.18 |
1491.00 |
|
Including |
Monserrat West |
176.2 |
176.7 |
0.5 |
84.79 |
0.38 |
7037.40 |
|
DM-33 |
Monserrat West |
170 |
175 |
5 |
4.91 |
3.17 |
171.80 |
|
DM-40 |
Monserrat West |
195.23 |
196.9 |
1.67 |
12.56 |
13.51 |
32.96 |
|
DM-34 |
Monserrat West |
216.1 |
219 |
2.9 |
5.49 |
0.41 |
426.45 |
|
DM-19 |
Monserrat West |
135.52 |
138.4 |
2.88 |
4.58 |
3.20 |
141.79 |
|
DM-13 |
Monserrat West |
188.9 |
190.5 |
1.6 |
7.06 |
1.08 |
507.69 |
|
MVDDH012 |
Monserrat West |
179.5 |
180 |
0.5 |
19.93 |
3.78 |
1377.48 |
|
MODDH004 |
Bajo Pedernal |
87 |
91 |
4 |
2.42 |
0.51 |
163.04 |
|
Including |
Bajo Pedernal |
87 |
87.5 |
0.5 |
9.86 |
2.15 |
660.42 |
|
DM-19 |
Monserrat West |
128.9 |
130.4 |
1.5 |
6.00 |
0.63 |
453.00 |
|
DM-18 |
Monserrat West |
211 |
211.67 |
0.67 |
12.87 |
12.43 |
140.00 |
|
DM-22 |
Monserrat West |
219.96 |
221 |
1.04 |
7.91 |
8.62 |
13.00 |
|
MODDH001 |
Monserrat West |
168 |
169 |
1 |
4.96 |
4.81 |
52.70 |
|
DM-43 |
Monserrat West |
140 |
140.4 |
0.4 |
10.41 |
1.19 |
778.00 |
|
MODDH005 |
Monserrat West |
91 |
92 |
1 |
2.48 |
0.01 |
206.09 |
|
DM-41 |
Monserrat West |
149.00 |
149.21 |
0.21 |
11.51 |
0.10 |
856.00 |
|
MODDH002 |
Monserrat West |
302 |
303.4 |
1.4 |
1.55 |
1.38 |
25.38 |
|
MODDH002 |
Monserrat West |
72.1 |
72.45 |
0.35 |
2.71 |
0.08 |
219.91 |
(*) Reported interval lengths are
down-hole widths and not true widths.(**) Gold
equivalent (“Au Eq.”) is calculated using metal prices of US$
1,800/oz for Au and US$ 24/oz for Ag. The equation used is: Au Eq
g/t = Au g/t + (Ag g/t ÷ 75).Au Eq assumes Au
recovery of 90%. The limited metallurgical studies by Fredonia
(selective Bottle rolls from Main Veins material) have indicated
high (>90%) recovery of gold in oxide material. The Cerro
Vanguardia mine to the east of EDM with similar mineralization
reports recoveries in the high 90% for Au.
Figure 3. Cross Section showing fence of
current drill holes from Main Veins to Monserrat West, with Bajo
Pedernal target in the middle.
Figure 4. Long Section showing north
segment of Main Veins with current drill holes testing under post
mineral-basalt flow and extending the system to the
north.
Phase III drilling has confirmed the location of
multiple ore shoots in the Northern Monserrat sector, with
extensive intersections of gold and silver mineralized veins,
extending the known mineralization to the north at the Main Veins
target, under the basalt flow. It also extended the Bajo Pedernal
target, which has very little surface expression (jasperoidal
veins) but which now show similar potential as the more advanced
Main Veins and Monserrat West targets.
In addition, there are numerous targets that are
yet to be drilled such as Abanico, that comprise at least four
distinct veins traceable over 1.0 km of strike; and Monserrat East,
a silicified trend reaching 3.0km long by 8m wide located 2.5km
east of Main Veins.
Based on all of the above, the Northern
Monserrat sector requires additional systematic drilling to define
the true extent of the sector, currently open in all
directions.
The interpretation of this new phase of drilling
is currently being carried out, including integrating it with the
historical drilling. This will provide the basis for future
exploration drilling and selection of other potential high-grade
zones.
Quality Assurance/Quality
Control:
All core samples were submitted to the principal
Alex Stewart Laboratories in San Julián city for preparation and in
Mendoza city for the analysis. All samples were analyzed for Au and
Ag by fire assay/ AA finish 50 g, plus a 39-element ICP-AR finish.
Fredonia followed industry standard procedures for the work with a
quality assurance/quality control (QA/QC) program. Blanks and
reference material of High grade/ Low grade Gold and High grade/
Low grade Silver standards were included with all sample shipments
to the principal laboratory. Field duplicates were made from Coarse
Reject. Fredonia detected no significant QA/QC issues during review
of the data.
Mr. Fernando Ganem, Professional Geoscientist,
VP - Exploration of the Company, is a qualified person
(“QP”) as defined by Canadian National Instrument
43-101. Mr. Ganem visited the property and has read and approved
the technical contents of this release.
Data Verification
Mr. Ganem has previous experience with the EDM
property and the historical QA/QC procedures undertaken for the
preparation of previous results and has previously conducted the
verification activities on drilling and sampling results described
in Fredonia’s technical report entitled “Technical Report on the El
Dorado-Monserrat Property in Santa Cruz Province, Argentina” dated
February 15th, 2021 (the “EDM Technical
Report”).
Mr. Ganem was physically present to inspect and
take verification samples from drill core in the most recent
drilling campaign, and verify drill results against data-base
information provided by management to ensure the assay results
presented are those in the database. Digital ‘original’ final assay
reports (certificates) were provided to the QP at the time of
disclosure for verification.
About Fredonia
Fredonia holds gold and silver license areas
totaling approximately 18,300 ha. in the prolific Deseado Massif
geological region in the Province of Santa Cruz, Argentina,
including the following principal areas: its flagship - the
advanced EDM project (approx. 6,200 ha.) located close to AngloGold
Ashanti’s producing multi-million Au-Ag Cerro Vanguardia mine2, the
El Aguila project (approx. 9,100 ha.), and the Petrificados project
(approx. 3,000 ha).
For further information: Please
visit the Company website www.fredoniamanagement.com or contact:
Omar Salas, Chief Financial Officer, Direct: +1-416-846-7807,
Email: omar.salas@icloud.com.
Neither 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.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains certain
“Forward-Looking Statements” within the meaning of applicable
securities legislation relating to the Company and the EDM project,
including statements regarding the prospectivity of the EDM project
for gold and silver mineralization, including the potential for
metal recoveries from any mineral processing activity, the
potential for a mineral resource estimate at the Project, and the
Company’s future exploration plans. Words such as “might”, “will”,
“should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”,
“forecast” and similar terminology are used to identify forward
looking statements and forward-looking information. Such statements
and information are based on assumptions, estimates, opinions and
analysis made by the Company considering its experience, current
conditions and its expectations of future developments as well as
other factors which it believes to be reasonable and relevant.
Forward-looking statements and information involve known and
unknown risks, uncertainties and other factors, including, without
limitation, the factors described in the Company’s filing statement
dated June 22, 2021 available on SEDAR at www.sedar.com under the
heading “Risk Factors” that may cause actual results to differ
materially from those expressed or implied in the forward-looking
statements and information and accordingly, readers should not
place undue reliance on such statements and information and the
Company can give no assurance that they will prove to be correct.
The statements in this press release are made as of the date of
this release. The Company undertakes no obligation to update
forward-looking statements made herein, or comment on analyses,
expectations or statements made by third parties in respect of the
Company or its securities, other than as required by law.
2 2.5 million oz. Au in the measured and indicated mineral
resource category (including reserves) per AngloGold Ashanti
Mineral Resource and Ore Reserve Report as at 31 December 2021;
145,000 oz production in 2021 per Cerro Vanguardia Operational
Profile 2021; available at www.anglogoldashanti.com.
Photos accompanying this announcement are available
athttps://www.globenewswire.com/NewsRoom/AttachmentNg/2ed776c3-a867-4b37-97f7-9f200d3f0006
https://www.globenewswire.com/NewsRoom/AttachmentNg/ce382aea-632e-408a-bc6a-dc5bdc400c03
https://www.globenewswire.com/NewsRoom/AttachmentNg/48b9b287-18d8-4179-8dc1-aa1d2d516f18
https://www.globenewswire.com/NewsRoom/AttachmentNg/c8765ca8-ad62-4168-b598-10d7e0883f93
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