Historic data have been recompiled and re-analyzed, resulting in a refined drill plan.
Toronto, Ontario, September 19, 2017 – Magna Terra Minerals Inc. (“Magna Terra” or the “Company”) (TSX-V: MTT) (SSE: MTTCL) is pleased to announce that historic data including rock chips, soils, trench samples and Induced Polarization (“IP”) have been recompiled, and re-analyzed, resulting in a refined drill plan for implementation in 2018.
The Luna Roja Project (“Luna Roja” or the “Project”) is located in the Santa Cruz Province of Argentina, on the northern edge of the Deseado Massif, approximately 75 km to the NW of the new Don Nicolas Mine. The Project is accessed from the town of Fitz Roy on 80 km of unpaved roads and farm tracks (see Figure 1).
The Project is characterized by gold bearing, low sulphidation breccias and veinlets which occur in structures in and around rhyolitic domes and tuffs of the Jurassic Chon Aike Formation. Work carried out to date includes 360 rock chip and float samples including saw cut channels and an additional 741 trench samples, 711 of which are channel samples with the remaining 30 being selective. There are 715 soil samples and 17.6 line km of IP. The position of the Luna Roja Project is illustrated, relative to the El Monte property boundaries, in Figure 2a, with Au from rock chips over a Landsat Thematic Mapper alteration image as a background.
The findings discussed in this press release utilize all data mentioned above, which is technically historical. The data was collected by AuEx Argentina S.A./Renaissance Gold Inc. Note, that data described as rock chips or selective samples were taken in situations where sample spacing is determined by availability of outcrop and sub-crop and so the results are not necessarily representative of the mineralization hosted on the Project.
The rock chip surface sampling covers an area of 2 by 3 km, see Figure 2b. Gold and silver grades range from detection up to 8.6 ppm Au and 638 ppm Ag. Average grades are 0.16 ppm Au and 11.70 ppm Ag. Mineralization on the surface is principally controlled by a 2.7 km NNW striking structure, locally called the “Via Lactea Fault”. At the northern end of the Via Lactea Fault there is a 500 m by 250 m zone of breccias, “Estrella del Norte”, in a rhyolitic dome. The 68 rock chips and channel samples in this zone range from detection up to 5 ppm Au with an average 0.27 ppm Au. At the southern end of the structure is a zone of vein breccias in tuffs, “Cruz del Sur” where 22 rock chip samples report gold and silver grades ranging from detection up to 8.6 ppm Au and 638 ppm Ag with an average of 1.29 ppm Au and 124 ppm Ag over a strike length of 300 m.
There are seven trenches constituting 3.6 line kilometers with an east to west configuration. Of the 741 samples taken from the trenches, 30 are selective samples and the remaining samples are saw cut and rock chip channels. Average gold is 0.041 ppm Au in the channel samples and 0.062 ppm Au in the select samples. The table below illustrates the key channel sample intercepts from trenches 1 to 4.
Soil sampling and IP campaigns, carried out by Renaissance Gold Inc. in 2011 and 2012, were designed as a series of east to west lines, parallel to and in some cases adjacent to the trenches. The soil sampling results were thus calibrated to the trench channel data to extrapolate gold and trace element patterns across a wider surface area. This data was analysed relative to the IP to define potential anomalism at depth and subsequent drill targets. Figure 3a illustrates gridded and contoured soil Au ppb data which constitutes a range from below detection to 112 ppb, the orange to red tones representing above average Au. The image illustrates semi-continuous Au anomalism along the Via Lactea Fault as well as a parallel structure 600 m to the east. This pattern is repeated in the trace elements Hg, As and Sb and to some extent in Ag data, which ranges from below detection to 16.4 ppm and tends to be more geographically restricted. Figure 3b constitutes a plan composite comparing Au and Ag distribution to IP chargeability. We observe that the precious metal anomalism skirts the principal chargeable anomaly without directly overlying it.
Figure 4b illustrates chargeability IP anomalies at depth and in contact with the Via Lactea Fault, forming a scenario associated with high grade Au and Ag mineralization at surface, see Figure 4a. In the case of Figure 4c we observe shallow chargeable IP anomalies which are distal to the Via Lactea Fault and in such cases surface mineralization is absent.
It is believed that the mineralization observed is related to hydrothermal fluids which reached the surface via structures along the flanks of a largely impermeable rhyolitic dome complex and that the main IP anomaly, rather than the fault, represents the principal target. The IP anomaly constitutes a large target, possibly representing a zone where mineralizing fluids were trapped between the impermeable base of rhyolite domes and the top of a more permeable andesitic layer.
Mr. Lew Lawrick, President & CEO of Magna Terra commented: “With an approximate 110,000 hectare land position in 8 distinct district scale properties, we are systematically and methodically analysing and compiling all historic data with a view to not only refine existing drill targets but also define new drill targets on each property in our portfolio. We are very pleased to outline our first drill ready project in the Deseado Massif. Luna Roja looks like a very large target with significant Au and Ag anomalism. Our geologists are currently planning and budgeting the initial drill campaign for execution in 2018”
Quality Assurance / Quality Control
A QAQC programs for the trench and soil campaigns included duplicates and standards with all samples placed in sealed bags and delivered by AuEx Argentina S.A/Renaissance Gold Inc. staff to Andesmar in Caleta Olivia, Santa Cruz, Argentina from where they were transported to ALS Chemex Laboratories in Mendoza, Argentina, for gold fire assay and multi element analysis.
All technical data, as disclosed in this press release, has been verified by Richard L. Bedell Jr. who is a Qualified Person and Registered Member as defined by the Society for Mining, Metallurgy and Exploration.
Magna Terra Minerals Inc. is a Canada based, precious metals focused exploration company, with a portfolio of exploration properties in Quebec and a strategic interest in the Horn of South America. Magna Terra has recently announced the acquisition of a significant exploration portfolio in the prolific yet underexplored Province of Santa Cruz, Argentina and has assembled an experienced team to advance this highly prospective exploration portfolio in the near term. A number of these projects are available for option or joint venture, and additional information can be found on the company’s website at: www.magnaterraminerals.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Magna Terra Minerals Inc.
Lewis Lawrick, President & CEO: 647-478-5307
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.
Cautionary Statements Regarding Forward Looking Information
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure by the parties to complete the Transaction, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company’s expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company’s public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.