Rio Alto Mining Limited ("Rio Alto") (TSX VENTURE: RIO)(WKN:
A0MSLE) is pleased to announce positive results of a channel and
bulk sampling program completed on a representative selection of
the current shallow oxide resource in the La Arena Gold Oxide
Project. The gold grades of the channel and bulk samples are
generally significantly higher than the gold grades of the original
HQ diamond drill (DDH) assays.
Gold in the oxide resource at La Arena is preferentially
situated within numerous fractures within the sandstone, quartzite
and brecciated material that hosts the oxide resource. During
diamond drilling and core cutting, water is utilised to cool and
lubricate the diamond bits and this water can wash the fine friable
material out of the fractures in the rock. Since gold
mineralization is located within these fractures the resulting core
used for analysis can underestimate total gold content.
La Arena S.A. completed a channel and bulk sampling program over
a 3 month period in 2009. 10 pits were excavated to a maximum depth
of 10 metres. The pits were located to provide a representative
distribution of the oxide resource and were excavated on the
existing HQ diamond holes utilised in the current La Arena Resource
estimate.
Channel samples weighing approximately 10kg each were taken 20cm
parallel to the existing drillhole on two meter intervals
(equivalent to the diamond drill sample length and spatial
position). Bulk samples were also taken at 2 metre intervals from
the 1.5 metre by 1 metre pit then dried, homogenised and a total of
10 representative 10kg samples were taken for analysis from each
bulk sample.
The results of the sampling and the original HQ diamond drill
hole grades are outlined in the table below. In summary the gold
grades in the channel samples were on average 96% higher than
comparative samples from the diamond drill holes and the gold
grades in the bulk samples were on average 40% higher.
----------------------------------------------------------------------------
Average
bulk
Original Channel sample
From To Recovery grade DDH in pit from pit Channel Pit vs
Hole (m) (m) in DDH (%) (Au ppb) (Au ppb) (Au ppb) vs DDH DDH
----------------------------------------------------------------------------
96D-LA-045 2 4 no data 33 25 13 -24% -60%
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96D-LA-045 4 6 no data 25 1.506 1.023 5924% 3991%
----------------------------------------------------------------------------
96D-LA-045 6 8 no data 1.180 881 4.523 -25% 283%
----------------------------------------------------------------------------
96D-LA-045 8 10 no data 460 2.197 989 378% 115%
----------------------------------------------------------------------------
98D-LA-058 0 2 57.5 1.000 1.424 2.032 42% 103%
----------------------------------------------------------------------------
98D-LA-058 2 4 60 360 1.021 550 184% 53%
----------------------------------------------------------------------------
98D-LA-058 4 6 70 180 196 253 9% 41%
----------------------------------------------------------------------------
98D-LA-068 0 2 75 510 2.157 851 323% 67%
----------------------------------------------------------------------------
98D-LA-068 2 4 85 770 2.754 912 258% 18%
----------------------------------------------------------------------------
98D-LA-068 4 6 100 930 3.687 1.629 296% 75%
----------------------------------------------------------------------------
98D-LA-068 6 8 100 2.700 5.643 2.343 109% -13%
----------------------------------------------------------------------------
98D-LA-068 8 10 100 3.770 6.394 3.541 70% -6%
----------------------------------------------------------------------------
98D-LA-075 0 2 89 570 883 649 55% 14%
----------------------------------------------------------------------------
98D-LA-075 2 4 80 440 1.273 515 189% 17%
----------------------------------------------------------------------------
98D-LA-075 4 6 78 42 274 369 552% 780%
----------------------------------------------------------------------------
98D-LA-075 6 8 75 350 108 413 -69% 18%
----------------------------------------------------------------------------
98D-LA-077 0 2 80 270 156 72 -42% -73%
----------------------------------------------------------------------------
98D-LA-077 2 4 82.5 92 1.565 1.442 1601% 1468%
----------------------------------------------------------------------------
98D-LA-077 4 6 84 2.010 2.138 3.798 6% 89%
----------------------------------------------------------------------------
98D-LA-077 6 8 98 6.940 2.614 3.394 -62% -51%
----------------------------------------------------------------------------
98D-LA-087 0 2 55 1.240 789 1.260 -36% 2%
----------------------------------------------------------------------------
98D-LA-087 2 4 67.5 1.380 4.340 1.529 214% 11%
----------------------------------------------------------------------------
98D-LA-087 4 6 55 11.100 21.160 5.073 91% -54%
----------------------------------------------------------------------------
98D-LA-087 6 8 57.5 1.640 4.634 4.212 183% 157%
----------------------------------------------------------------------------
98D-LA-087 8 10 60 1.680 5.092 7.259 203% 332%
----------------------------------------------------------------------------
98D-LA-123 0 2 99 239 296 190 24% -20%
----------------------------------------------------------------------------
98D-LA-123 2 4 97.5 517 575 458 11% -12%
----------------------------------------------------------------------------
98D-LA-123 4 6 95 659 2.791 1.959 324% 197%
----------------------------------------------------------------------------
98D-LA-123 6 8 92.5 2.079 1.917 1.275 -8% -39%
----------------------------------------------------------------------------
98D-LA-123 8 10 95 89 2.119 622 2281% 599%
----------------------------------------------------------------------------
05D-LA-146 0 2 80 1.105 5.355 6.685 385% 505%
----------------------------------------------------------------------------
DDH-LA-245 0 2 91.5 1.000 2.127 1.351 113% 35%
----------------------------------------------------------------------------
DDH-LA-245 2 4 97.5 534 3.472 1.065 550% 99%
----------------------------------------------------------------------------
DDH-LA-245 4 6 97.5 1.475 1.815 1.071 23% -27%
----------------------------------------------------------------------------
DDH-LA-253 0 2 32.5 1.155 2.363 999 105% -13%
----------------------------------------------------------------------------
DDH-LA-253 2 4 28.5 254 851 1.160 235% 356%
----------------------------------------------------------------------------
DDH-LA-253 4 6 37.5 526 809 1.541 54% 193%
----------------------------------------------------------------------------
DDH-LA-253 6 8 50 388 1.384 3.308 257% 752%
----------------------------------------------------------------------------
DDH-LA-253 8 10 95 2.320 3.142 2.645 35% 14%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AVERAGE 1.334 2.614 1.871 96% 40%
----------------------------------------------------------------------------
The results from this comparative study, although representative
of only 39 samples in the La Arena oxide resource, demonstrates
that in the case of both the bulk sample and the channel samples
taken, the gold grade, in the majority of cases, tends to be
significantly higher than the grades achieved by diamond
drilling.
Rio Alto anticipates that these results will be confirmed in
early 2010 as part of the ongoing development program for the La
Arena Gold Oxide Project.
QA/QC applied during the channel and bulk sampling program at La
Arena consisted of including 2 standards and 2 blanks in each batch
of 70 samples submitted for assay. The primary laboratory selected
was CIMM Peru which also provided the results of 4 internal
standards, 4 pulp lab duplicates, 1 duplicate from sample coarse
reject and 2 blanks, as part of their procedures. 21 pulp samples,
47 coarse reject samples and granulometric control samples were
sent to a second laboratory, ALS Peru. Both laboratories assayed
for gold by fire assay using a 50g pulp and an Atomic Absorption
Spectrometry (AAS) finish. Gold results greater than 10g/t au were
analysed using a gravimetric finish. A multi-element suite was
analyzed by aqua regia with an ICP finish. This represents the same
method of analysis used in the original diamond drilling.
The contents of this press release have been reviewed and
verified by Mr. Beau Nicholls, Coffey Mining Pty Ltd, a member of
the Australasian Institute of Geoscientists and graduate of Western
Australian School of Mines and holder of a Bachelor of Science in
Mineral Exploration and Mining Geology (1994). Mr. Nicholls is Rio
Alto's Qualified Person as defined by NI 43-101. For additional
information regarding the La Arena Project, please refer to the
technical report (the "Report") entitled "La Arena Project,
Huamachuco District, Peru" dated March 31, 2008 (the "La Arena
Report") prepared by Linton Kirk, BE (Mining), FAusIMM, Jan de
Visser, PhD (Geol), MSC (Geol), MAusIMM, and Chris Witt, BSc (Met),
MAusIMM of Coffey Mining Pty Ltd. The Report was prepared in
accordance with NI 43-101 and a copy is available under Rio Alto's
SEDAR profile at www.sedar.com.
Commenting, Director & COO, Alex Black said, "We are
delighted to see that this comparison study demonstrated the
potential for higher gold grades at the La Arena Gold Oxide
Project. Like a number of other gold oxide projects in Peru, it is
possible that Rio Alto will achieve positive grade reconciliations
during mining. We expect that further work during the development
program will demonstrate higher mine head grades are
achievable."
Rio Alto Mining Limited (TSX VENTURE: RIO)(WKN: A0MSLE) is
focused on developing the La Arena Gold Oxide Project in Peru
within the next 20 months and exploring for silver on three former
silver producing properties in north eastern Mexico. The principal
objective of Rio Alto Mining Limited is to become the next company
in Peru to bring a gold project into production and to use cash
flow from production to further develop its assets in Peru and
Mexico. To learn more about Rio Alto Mining Limited, please visit:
www.mexicansilvermines.com. Financial information and other
information can also be found at www.sedar.com.
Forward Looking Information
This press release may contain "forward-looking information"
within the meaning of applicable Canadian securities legislation.
All statements, other than statements of historical fact, included
herein may be forward-looking information. Generally,
forward-looking information may be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "proposed", "is expected", "budgets", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and
phrases, or by the use of words or phrases which state that certain
actions, events or results may, could, would, or might occur or be
achieved. More particularly, and without limitation, this news
release contains forward-looking information regarding the gold
grade of the La Arena Gold Oxide Project. This forward-looking
information reflects Rio Alto's current beliefs and is based on
information currently available to Rio Alto and on assumptions Rio
Alto believes are reasonable. These assumptions include, but are
not limited to, the expectations and beliefs of management, the
assumed long-term prices of mineral commodities; that Rio Alto can
access financing, appropriate equipment and sufficient labour and
that the political environment where Rio Alto operates will
continue to support the development and operation of mining
projects and the grade and tonnage of actual ore being equivalent
to or better than estimated results in technical reports or prior
exploration results.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Rio Alto
to be materially different from those expressed or implied by such
forward-looking information. Such risks and other factors may
include, but are not limited to: risks and uncertainties relating
to foreign currency fluctuations; risks inherent in mining
including environmental hazards, industrial accidents, unusual or
unexpected geological formations, ground control problems and
flooding; risks associated with the estimation of mineral resources
and reserves and the geology, grade and continuity of mineral
deposits; the possibility that future exploration, development or
mining results will not be consistent with Rio Alto's expectations;
the potential for and effects of labour disputes or other
unanticipated difficulties with or shortages of labour or
interruptions in production; actual ore mined varying from
estimates of grade, tonnage, dilution and metallurgical and other
characteristics; the inherent uncertainty of production and cost
estimates and the potential for unexpected costs and expenses,
commodity price fluctuations; uncertain political and economic
environments; changes in laws or policies, changes in tax laws,
delays or the inability to obtain necessary governmental permits;
and other risks and uncertainties. Although Rio Alto has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. Accordingly, readers
should not place undue reliance on forward-looking information. Rio
Alto does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
ON BEHALF OF THE BOARD OF RIO ALTO MINING LIMITED
Alex Black, Director and Chief Operating Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts the responsibility for the adequacy or
accuracy of this release.
Contacts: Rio Alto Mining Limited Alex Black Director & COO
+51 1 625 9900 alexb@rioaltomining.com Rio Alto Mining Limited
Alejandra Gomez Investor Relations 604.762.8918 604.943.5364 (FAX)
alejandrag@rioaltomining.com www.mexicansilvermines.com
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