Vancouver, B.C. – July 9, 2013: San Marco Resources Inc. (“San Marco” or “the Company”; SMN: TSX-V) is pleased to announce additional results from the Company’s maiden exploration drill campaign at the Angeles property in northern Sonora state, Mexico.
“We are very pleased that these results continue to expand mineralization over a significant strike length of the Angeles structure,” said San Marco CEO Bob Willis. “They confirm the potential that our board and our highly skilled Mexican exploration team have always envisioned at the Angeles property.”
Exploration at Angeles commenced during the summer of 2012, and resulted in discovery of the mineralized Angeles fault structure over approximately 3,000 metres of strike length. Assay results of surface sampling and from historic underground workings have been previously disclosed by the Company.
Since drilling commenced in April, 2013, 8 holes have now been completed at the Bonanza zone and 4 at the La Verde zone, 1.1 km to the west of La Bonanza. Assays from the first 7 holes at Bonanza were previously disclosed (News Release dated May 23, 2013). Drill hole locations can be reviewed on a long section posted on the Company’s website.
Subsequent to previously released drilling at La Bonanza zone, one additional hole, AD13-08, was completed, downdip from holes AD13-03 and AD13-07. Highlights of assay results from this hole are:
Hole AD13-08
| From | To | Interval (meters) |
Au g/t | Ag g/t | AuEq | Cu % | Pb % | Zn % | % Pb-Zn Combined |
|---|---|---|---|---|---|---|---|---|---|
| 241.30 | 244.50 | 3.20 | 3.10 | 15.00 | 3.40 | 0.09 | 0.20 | 0.03 | 0.22 |
| Including 242.00 |
243.80 | 1.80 | 5.41 | 18.00 | 5.77 | 0.12 | 0.28 | 0.04 | 0.31 |
Four drill holes were also completed at the La Verde zone, located 1.1 km to the west of the primary Bonanza zone target. Mineralization encountered at La Verde is encouraging and is additional evidence that the gold/silver/base metal system continues on trend between La Bonanza and La Verde, a span of over 1.1 km. Higher silver values and moderately lower gold and base metal values potentially suggests the La Verde drilling to date, has intersected different metal zoning within the Angeles structure than that at La Bonanza. Studies designed to vector to higher grade gold zones within the system, are ongoing. Drill hole assay results at La Verde are:
Hole LV13-01
| From | To | Interval (meters) |
Au g/t | Ag g/t | AuEq | Cu % | Pb % | Zn % | % Pb-Zn Combined |
|---|---|---|---|---|---|---|---|---|---|
| 91.90 | 95.75 | 3.85 | 1.03 | 20.21 | 1.43 | 0.26 | 0.56 | 0.41 | 0.97 |
| Including | |||||||||
| 91.90 | 93.10 | 1.20 | 1.37 | 22.30 | 1.81 | 0.22 | 0.51 | 0.24 | 0.75 |
| And | |||||||||
| 97.00 | 98.40 | 1.40 | 0.02 | 64.11 | 1.30 | 0.62 | 0.11 | 0.54 | 0.65 |
Hole LV13-02
| From | To | Interval (meters) |
Au g/t | Ag g/t | AuEq | Cu % | Pb % | Zn % | % Pb-Zn Combined |
|---|---|---|---|---|---|---|---|---|---|
| 114.50 | 118.80 | 4.30 | 0.53 | 84.39 | 2.22 | 0.45 | 3.64 | 0.28 | 3.92 |
| Including | |||||||||
| 114.50 | 117.20 | 2.70 | 0.78 | 116.03 | 3.10 | 0.25 | 2.79 | 0.26 | 3.05 |
Hole LV13-03
| From | To | Interval (meters) |
Au g/t | Ag g/t | AuEq | Cu % | Pb % | Zn % | % Pb-Zn Combined |
|---|---|---|---|---|---|---|---|---|---|
| 96.80 | 97.40 | 0.60 | 0.03 | 3.10 | 0.09 | 0.01 | 0.00 | 0.00 | 0.01 |
| 103.30 | 104.00 | 0.70 | 0.01 | 0.50 | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
Hole LV13-04
| From | To | Interval (meters) |
Au g/t | Ag g/t | AuEq | Cu % | Pb % | Zn % | % Pb-Zn Combined |
|---|---|---|---|---|---|---|---|---|---|
| 99.65 | 101.40 | 1.75 | 0.08 | 68.80 | 1.45 | 0.14 | 0.07 | 0.04 | 0.11 |
| 100.80 | 101.40 | 0.60 | 0.07 | 156.00 | 3.19 | 0.13 | 0.03 | 0.04 | 0.07 |
| 108.80 | 111.30 | 2.50 | 0.65 | 93.52 | 2.52 | 0.47 | 0.12 | 0.16 | 0.28 |
| Including | |||||||||
| 108.80 | 110.00 | 1.20 | 1.11 | 119.75 | 3.51 | 0.53 | 0.16 | 0.18 | 0.34 |
Notes:
- A silver to gold ratio of 50:1 was used for AuEq calculations.
- Drill intervals reported are down hole intercepts. True widths are estimated to be greater than 80% of reported widths.
- Metallurgical recoveries and net smelter returns are assumed to be 100% for these calculations.
- Copper, lead and zinc values are not included in AuEq calculations.
- Drill core recovery of the announced mineralized zones is generally greater than 90%, unless otherwise noted.
- Down hole intercepts are calculated based on geological observations of the structure and not on a specific cut-off value
Drilling continues to demonstrate the consistency of the mineralization hosted in the Angeles fault structure. Following a 3 week break, drilling recently recommenced at the Bonanza zone. Additional drilling is designed to test the Angeles mineralized system on 150 metres to 200 metres step outs along strike (east and west) from previous drilling
Composites from drill hole pulps and rejects, have been sent to the Metallurgical Division of ALS Chemex in Kamloops B.C, where testing will not only include possible recovery alternatives for gold and silver, but include base metals which could have an impact on the overall economic analysis of Angeles.
Blanks and certified standards were inserted into the sample stream as part of San Marco’s quality assurance and control program, which complies with National Instrument 43-101 requirements. Core samples are split using a hydraulic splitter, with one half retained in secure storage for logging, and the other half sent to ALS Chemex Lab in Hermosillo, Sonora, Mexico. All samples are prepared using the PREP -31 method. 125 gram pulps are sent to ALS Chemex Lab. in Vancouver, B.C. A 30 gram split is analyzed for gold, using the Au-AA23 method. Sample results greater than 10 ppm are re-assayed, using AA23 fire assay and gravimetric finish. For silver, copper, lead and zinc, a multi-element, four acid digestion (ME – ICP 61 is used. For initial assays of silver > 100 ppm, copper, lead and zinc > 10,000 ppm (over limits), the OG62 method is used for re-analysis.
Exeter Resource Corp. (TSX:XRC; NYSE MKT:XRA) is currently funding a $1.0 million committed exploration program at Angeles, which is largely related to a planned 2,500 metres of drilling at the La Bonanza and La Verde target areas, pursuant to an agreement whereby it can earn an initial 51% in the Angeles property by staged expenditures totalling $10 million over 4 years and an additional 19%, over the next 3 years, for a total of 70% by spending an additional $10 million in exploration expenditures.
Exeter will also make cash payments, totalling $950,000 staged over 7 years, by way of a private placement purchase of San Marco’s common shares at a price equal to a premium of 25% to the 20 day volume weighted average price .
San Marco has elected not to proceed with an “Option agreement” on the 280 hectare Los Carlos concession, (news release dated November 7, 2011), located in the “Megashear” western Sonora state. The Company will however, proceed with generating an initial exploration program on its wholly owned 15,635 hectare Los Carlos II property. The Company’s website details this exciting prospect.
The technical information contained in this press release has been verified, and this news release has been approved, by San Marco’s CEO, Robert D. Willis, P. Eng. a ‘qualified person’ for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
For further information, contact:
| Rick Peterson V.P. Corporate Development 604-568-5951 604-868-3164 rick@rickpeterson.ca |
Robert D. Willis CEO 604-568-5951 604-813-2606 rwillis@sanmarcocorp.com |
This news release contains “forward-looking information” and “forward-looking statements” (together, the “forward-looking statements”), which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; changes in government regulations and policies, including trade laws and policies; failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; and other exploration, development, operating, financial market and regulatory risks. These forward-looking statements are made as of the date of this news release. San Marco Resources Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
