CALGARY, ALBERTA--(Marketwire - March 21, 2012) - Antioquia Gold Inc. ("Antioquia Gold" or "the Company") (TSX VENTURE:AGD)(OTCQX:AGDXF) plans to use key results from its 2011 exploration program to benefit the next phase of advanced exploration at its flagship Cisneros Project, moving the Company forward in 2012.
During 2011, Antioquia Gold completed 18,988 metres of diamond drilling that further delineated a prospective mineralized zone containing two deposits (Guayabito and Guaico) and seven areas of significant interest, including the newly discovered and significant Papi. This mineralized zone is located in the original exploration area on the Cisneros Project. Refer to Figure 1.
The Company completed an airborne geophysical survey over the entire Cisneros Project in February 2011. The results of this survey, combined with existing surface samples and geochemical and structural analysis, identified four additional regional exploration zones with characteristics similar to the Guayabito and Guaico deposits, adding significant exploration potential to the overall property. Refer to Figure 2.
In addition to its drilling program, the Company conducted the following work in 2011:
- Environmental studies to prepare for permitting for future mining development including exploration tunnels;
- Metallurgical testing of various ore types from core samples, confirming excellent gold recovery using conventional gravity and flotation processing systems;
- Investigation of two of the four regional exploration zones, the Bareño and Los Planes zones (see figure 2), which host structural framework and geochemical signatures similar to those at the Guayabito and Guaico deposits;
- Conducted an internal review of the requirements for a 600 tonne per day gold processing plant;
- Sourced and secured previously-owned processing plant equipment for potential use at Cisneros;
- Carried out an internal examination of mining methods based on experience at the Parcoy Mine in Peru owned by the Company's strategic partner Consorcio Minero Horizonte (CMH).
The company also completed technical reports in 2011 on its seven properties of merit in the Cauca Belt. The Company continues to evaluate JV opportunities with other parties in efforts to independently add value to these properties.
Plans and Outlook for 2012
In 2012, the Company's main focus will be on advancing exploration at its flagship Cisneros Project.
Antioquia Gold has the following benchmarks in place for 2012 at Cisneros:
- A 20,000 metre drilling program designed to assist the Company in determining whether the property contains the resources needed to support a production scenario of 600 tonnes per day over a 10 year period;
- Further explore the four additional regional exploration zones identified in 2011 to assess their potential, especially at Bareño and Los Planes;
- Develop an exploration tunnel in the Guaico area to further delineate mining potential, conduct geotechnical and hydrological studies, provide bulk ore samples for metallurgical assessment and access for underground diamond drilling exploration;
- Complete the following technical studies:
- Modern underground mining operation employing trackless equipment,
- 600 tpd gold processing facility incorporating previously-owned equipment sourced in 2011,
- Dry tailings disposal and rock dump areas capable of handling projected volumes from the above facility;
- Investigate financing alternatives that maximize shareholder value.
Finally, assuming positive results for these benchmarks by the end of 2012, the Company hopes to be in a position to decide whether to proceed with a production scenario, with gold production anticipated in 2014.
Mr. Ian Fraser, Chief Geologist, will be leading the 2012 exploration and drilling program. Mr. Brad Van Den Bussche will lead the Company in its pursuit of new areas for development, including the seven properties of merit in the Cauca Belt. Accordingly, his title will change from VP, Exploration to VP, Business Development effective April 2, 2012.
About Antioquia Gold Inc.
Antioquia Gold has been exploring for precious metals in Colombia since 2007. The Company has a land package of close to 40,000 hectares located throughout Colombia. Antioquia's principal asset, which is being actively explored, is its 5,630 hectare Cisneros Project, located 55 kilometers northeast of Medellin in the Department of Antioquia, Colombia. At the Cisneros Project the Company has conducted extensive geochemical and geophysical programs over the entire property and has identified to date five exploration zones. On the original discovery zone it has drilled over 32,000 meters and is well versed in the understanding of the deposit type and the project's path to resource definition and production.
On behalf of Antioquia Gold Inc. Richard Thibault, President & CEO
For further information on Antioquia Gold Inc., visit our website at www.antioquiagoldinc.com.
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This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, including, but not limited to, statements about the four additional regional exploration zones adding significant exploration potential to the overall property, the Company's plans for exploration in 2012, including the plans for 20,000m of drilling and the development of an underground exploration tunnel, and its anticipation that it will be in a position to make a decision about whether to proceed with production after completing the 2012 program and that production could begin in 2014, are forward-looking statements. Forward-looking statements are based on management's assumptions and are subject to risks and uncertainties. There can be no assurance that any forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information due to a number of factors beyond the Company's control. These assumptions, risks and uncertainties include, among other things, management's assumptions about government permitting, equipment procurement and the availability of the necessary consultants and capital, as well as the risks of delay in any of these activities and the risks inherent in Antioquia Gold's operations, including the risks that the Company may not find any minerals in commercially feasible quantity or raise enough money to fund its exploration plans. These and other risks are described in the Company's Annual Information Form and other public disclosure documents filed on the SEDAR website maintained by the Canadian Securities Administrators. The Company does not undertake to update any forward-looking information except as may be required by applicable securities laws.
To view Figure 1 (Cisneros Original Exploration Zone with Areas of Interest), please visit the following link: http://media3.marketwire.com/docs/agdf1m21.pdf
To view Figure 2 - (Location of Regional Exploration Zones), please visit the following link: http://media3.marketwire.com/docs/agdf2m21.pdf
Neither the 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.