Azteca Gold Corp. (the "Company") (TSX VENTURE: AZG), is issuing
this news release as a result of a review by the Alberta Securities
Commission (the "ASC") and the TSX Venture Exchange (the "TSXV"),
to clarify the Company's Quality Assurance / Quality Control
("QA/QC) protocol and previous disclosure respecting drilling
results on its Two Mile Project located in Idaho, USA.
Company's Qualified Person ("QP")
The Company advises that effective immediately, Matt Russell
will no longer be acting as the Company's QP. A review by the ASC
determined that Mr. Russell did not have the formal education and
relevant experience to meet the requirements of a QP for the Two
Mile Project. Mr. Russell, President, CEO and Chairman of the
Company, will oversee the continued exploration of the Two Mile
Project under the guidance of the Company's QP.
Mr. Richard Nanna, a Company director and a professional
geologist (State of Washington, Certification No. 1398) has
temporarily assumed the role of QP for the Company. Mr. Nanna's
responsibilities as a QP will include review of all Two Mile
Project technical disclosure as required by National Instrument
43-101, and will be responsible for the over sight of the
continuing drill program including recommendations of future
drilling programs. Azteca plans to hire a staff QP as soon as
possible to assume these duties.
QA/QC Protocol
The Company advises that exploration work conducted on the Two
Mile Project did not follow CIM Exploration Best Practices
guidelines (the "Guidelines"). After reviewing the Company's
exploration work, specifically drilling practices and procedures,
TSXV determined that the Company has not been in full compliance
with the Guidelines. In particular while drilling, core handling
and core sampling on the Two Mile Project, a QP or a qualified
geologist has not been present, core logging has not been conducted
by a geologist and an acceptable QA/QC protocol was not used.
The Company will be immediately rectifying the deficiencies to
fully comply with the Guidelines by:
- the immediate hiring of a qualified staff geologist to oversee
exploration onsite and monitor the QA/QC protocol for the Company
and who will become the Company's QP for the Two Mile Project;
- immediately document and improve its QA/QC protocol;
- immediately implementing improvements in the QA/QC consisting
of, among other things, complete logging of all core, ensure
industry standard sampling procedures are followed, ensure current
records are kept, safeguard chain of custody, complete data
analysis, verification and data base procedures, surface and down
hole surveys, and validating data with check assays based on
standards, reference, and duplicate samples.
Improvements to the QA/QC protocol are necessary to ensure high
integrity of information received during the exploration
process.
Continuous Disclosure Review
As a result of a continuous disclosure review, on June 26, 2009,
the ASC advised the Company that it was required to clarify certain
technical and geological information. The Company cautions that any
previous statements in press releases or interviews suggesting
mineable nature or potential economic viability, or any inferences
about metal grades based on geological descriptions of massive
mineralization, sulfides or other mineralization types are
premature and should not be relied on.
The applicability of a Sullivan-type bedded massive sulfide
deposit model or other models, such as the model of a "massive
sulfide stock" which may be found "in or immediately below the
carbonate unit" and the citation of a "Carlin Trend" model used in
reference to anomalous gold near the bottom of DDH-006A, in the
area of DDH-005 and DDH-006 is uncertain and needs support. To
establish which geological model(s) are applicable to the deep
sulfide mineralization additional work is required, including
geological core logging, geological and geochemical analysis, and
additional drilling results.
The Company has previously described its objective of developing
resources by step-out drilling, including wedge-off holes. The
Company cautions that the determination of a mineral resource
depends on grades, widths and continuity of mineralization, as well
as a preliminary economic study of potential minability of the
identified mineralized geometry at the particular depth.
Reporting of zinc-lead assay results
It is the opinion of the Company's QP, Richard Nanna, that all
material sulfide assays reported to the Company by the assay lab
have been disclosed for holes DDH-005A to depth 8,784 FT, DDH-005B
to depth 8,744 FT, and DDH-006 to depth 11,173 FT. The assay values
as presented by Matt Russell have been presented accurately but it
is the opinion of the qualified person that certain further assays
as presented below will provide clarification.
The Company continues to drill deeper in DDH-005B and DDH-006B
with the objective of replicating its success in DDH-005A.
Assay Clarification
In preparing this clarification of assays, the Company's QP,
Richard Nanna, has reviewed relevant assay and other data provided
by the Company.
DDH-005A:
On January 13, 2009 the Company reported that the 7,937.6 to
7,953 interval (15.5 ft) in DDH-005A graded 40% zinc, 7.4% lead and
104.7 grams of silver per tonne. This was based on the assays
reported by American Analytical Services Inc. on January 7, 2009.
On January 19, 2009 the company received results of check assays
for the high-grade sulfide intersection in DDH-005A from Loring
Laboratories Ltd. Nine samples in and closely adjacent to the
sulfide zone were check assayed by Loring and there were no
significant variances to the previously reported American
Analytical Services results.
DDH-005B:
Although the Company does not expect any material sulfide assays
to a depth of 8744 FT, the Company is currently drilling deeper in
DDH-005B in hopes of intersecting similar massive sulfides as
discovered in DDH-005A. The Company has no geologic support at this
time for a structural or mineralogical tie between massive sulfide
mineralization in DDH-005A and potential for sulfide mineralization
in DDH-005B.
DDH-006:
The Company's press release dated February 24, 2009 contained a
typographical error. The stated depth of mineralization in hole
DDH-006 should have been 5360 FT, not 5600 FT. The same news
release described this mineralization as "continuous and
intermittently semi-massive". In a press release dated April 2,
2009, the Company disclosed assay results for this section of
DDH-006 of high iron sulfide grades but there were no
lead-zinc-silver grades of potential economic interest.
In its June 18, 2009 press release the Company reported a lower
zone in DDH-006 as a "second major mineralized zone" from 10,850 to
11,108 ft. The Company is not expecting high-grade zinc-lead
intersections from the interval from 10,850 to 11,108 in DDH-006.
The Company identified bournonite and possibly polybasite, and said
the mineralization has been "visually increasing in concentration
with depth", and "within the last 30 ft or so this mineralization
has become intermittently massive". The assays given within this
interval in the July 3, 2009 press release, although potentially
significant as indicators of adjacent mineralization, do not
represent, at these depths, "major mineralization" as described in
the press release. Although the elements necessary for bournonite
are present in this interval, the Company has not yet confirmed
through further analysis that bournanite is present. A dark
silicate mineral may have been mistaken for polybasite, which also
has not been positively identified in the drill core. Referral to
the "intermittently massive" character of this zone is uncertain
and cannot be relied on.
The Company is doing further analysis to better understand what
dark mineral is present in this interval because the qualified
person understands that this dark mineral or a derivative of it may
also be responsible for the mistaken identification of tetrahedrite
in the interval 10,000 - 10,180 FT and the interval 10,500 -
10,600.
Summary Assays for Various Intervals in Hole DDH-006:
10,000 - 10,181 FT Interval- DDH-006:
Element Average Minimum Maximum
(ppm) (ppm) (ppm)
Au N/A less than 0.005 0.103
Ag N/A less than 2.0 less than 2.0
As 21.5 less than 5.0 97.8
Cu 25.2 7.7 54.3
Pb 54.1 54.1 433
S 3871 less than 50 1.62%
Sb 8.8 less than 5.0 14.4
Zn 161 27.5 1110
Although the elements for tetrahedrite are present, including
anomalous antimony (Sb), the qualified person believes a dark
silicate mineral is most likely responsible for the mistaken
identification of tetrahedrite. The Company is doing further
analysis to identify what minerals are present in this
interval.
10,500 - 10,600 Interval- DDH-006:
Element Average Minimum Maximum
(ppm) (ppm) (ppm)
Au N/A less than 0.005 0.111
Ag N/A less than 2.0 less than 2.0
As N/A less than 5.0 19.1
Cu 24.1 3.5 80.2
Pb N/A less than 5.0 40.8
S 1140 less than 50 3270
Sb N/A less than 5.0 less than 5.0
Zn 69.4 28.0 112
The Company's QP, Richard Nanna, believes a dark silicate
mineral is most likely responsible for the mistaken identification
of tetrahedrite. The Company is doing further analysis to identify
what minerals are present in this interval.
The June 29, 2009 news release reported a "deep target" in
DDH-006, a carbonate unit reported to be at least 90 ft thick.
Sulfide related assays for this approximate 90 FT interval are as
follows:
11,081.5 - 11,173 FT Interval:
Element Average Minimum Maximum
(ppm) (ppm) (ppm)
Au N/A less than .005 0.023
Ag N/A less than 2.0 less than 2.0
As 7.5 less than 5.0 24.5
Cu 32.0 2.5 144
Pb 10.7 less than 5.0 107
S 3360 206 9380
Sb N/A less than 5.0 12.2
Zn 52.2 14.0 144
The carbonate assays as given in the July 3, 2009 press release
can be relied upon as representing a carbonate zone but there are
not enough carbonate assays reported to date to support continuous
anomalous carbonate over 90 FT. The Company is currently drilling
DDH-006B to test the width and tenor of this carbonate zone.
Diamond drill core samples for the drill holes noted in this
news release were processed per the Company's chain of custody
controlled by Azteca personnel who transferred the samples directly
to American Analytical Labs, located at Osborne, Idaho, an
independent and fully accredited lab. The assay lab has provided
assay results to only those within Azteca's control pursuant to the
list provided to them by Matt Russell. Material assay results are
considered preliminary by the Company until check assays are
received.
Assay methods include fire assay for Ag and Au. ICP
(inter-coupled plasma) was used for lead, zinc, copper, antimony,
arsenic and sulfur.
The Company also wishes to advise that the TSXV has indicated
that the shares of the Company are scheduled for resumption to
trading effective the opening Tuesday, September 15, 2009.
The technical and scientific information contained in this news
release has been prepared and reviewed by the Company's QP Richard
Nanna.
WARNING: the Company relies upon litigation protection for
"forward looking" statements. The information in this release may
contain forward-looking information under applicable securities
laws. This forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
actual results to differ materially from those implied by the
forward-looking information. Factors that may cause actual results
to vary material include, but are not limited to, inaccurate
assumptions concerning the exploration for and development of
mineral deposits, currency fluctuations, unanticipated operational
or technical difficulties, changes in laws or regulations, the
risks of obtaining necessary licenses and permits, changes in
general economic conditions or conditions in the financial markets
and the inability to raise additional financing. Readers are
cautioned not to place undue reliance on this forward-looking
information. The Company does not assume the obligation to revise
or update this forward-looking information after the date of this
release or to revise such information to reflect the occurrence of
future unanticipated events, except as may be required under
applicable securities laws.
Shares issued: 182,994,331
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Azteca Gold Corp. Jon Slizza VP of Corporate Finance
and Investor Relations Cell: 1-509-981-2020 info@azteca-au.com
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