Alio Gold Inc is pleased to provide an update on its exploration program at its 100% owned Ana Paula Project (the “Project” or “Ana Paula”). Ana Paula is a high grade, high margin project located in Guerrero, Mexico.
Highlights- Discovered two new breccia targets within 1.5 km
west of the Ana Paula deposit through surface mapping as part of the
regional exploration program
- Completed 1,300 metres of the
planned 3,800 metre surface drill program testing the known extension of
the high-grade breccia below the proposed open pit
- Completed two of six diamond drill holes, third underway with one diamond drill rig operating
- Intersected breccia mineralization in first two holes as anticipated, assay results expected this month
- Progressed
underground decline construction with mining equipment including jumbo
drill rig, scoop and two trucks mobilising to site from port
“We have made good progress on the exploration program in the first two months of the year” said Greg McCunn, CEO of Alio. “The discovery of two new breccia targets outcropping at surface and within close proximity to the existing Mineral Resource is an exciting development and shows the potential of our 56,000 hectare land package. The surface drilling to test the known extension of the breccia below the proposed pit is designed to allow us to more fully understand the nature and extent of the mineralization ahead of drilling from underground. With the decline construction now fully underway, we expect to be in a position to start drilling from underground in Q3 2018.”
Regional ExplorationAs part of the ongoing regional exploration activity, the Company has been compiling higher resolution (1:5,000 scale) geological mapping of areas surrounding the Ana Paula deposit. Mapping to the west recently identified two breccia outcrops within 1.5 kilometres from the Ana Paula deposit.
The high-grade breccia mineralization at Ana Paula is predominantly a hydrothermal breccia surrounded by a sediment-intrusive domain. The two west breccia targets are outcroppings of magmatic and hydrothermal breccia mineralization with traces of pyrite and arsenopyrite.
Further exploration work is being undertaken in the area including sampling, mineralogy and more detailed mapping.
Surface Drilling ProgramThe main objective of the current exploration program at Ana Paula is to further delineate the known extension of the high-grade breccia mineralization below the proposed open pit. A second objective is to test a lower-grade hydrothermal breccia structure lying south of the proposed pit. A 3,800 metre diamond drilling program was initiated in January 2018 which consists of six drill holes of 600 to 700 metres each.
The Company has had one drill rig in operation since late January, has completed the first two drills holes and is currently drilling the third hole. A total of 1,300 metres has been drilled to-date. The first hole intersected the hydrothermal breccia system over a mineralized interval of approximately 180 metres and the higher grade complex breccia below the proposed pit over a 27 metre interval. Similarly, the second hole also intersected the hydrothermal breccia over approximately 177 metres and the complex breccia over a 31 metre interval. Assay results will published as they become available and drilling is expected to be complete in Q1 2018 when the drill will be moved to the North Area target.
Decline Construction and Underground Drilling ProgramThe extension of the high-grade breccia system below the proposed pit will be further tested from drilling underground in Q3 2018. Currently, a 1,200 metre underground decline is under construction which is being driven from a portal site located in the adjacent valley from the proposed pit and approximately 400 metres from the proposed mill site. It is expected that the underground decline will be advanced sufficiently by Q3 2018 to enable commencement of the first phase of the underground diamond drill program. The drill program is expected to confirm the continuity and shape of the high-grade gold mineralization below the proposed pit that is hosted in the breccia and it will also explore the gold mineralization indications at depth hosted in hornfels skarn, typical of the Guerrero Gold Belt. The underground drilling program proposed includes 55 diamond drill holes (12,000 metres).
Currently the portal site has is being prepared with bolting, screening and shotcreting by the mining contractor. Mining equipment including a jumbo drill rig, scoop and two trucks will be arriving on site in the next week. Currently, drilling is being conducted by jack-leg drilling. Mining operations are currently taking place on 24 hours per day, 7 days per week basis.
Support infrastructure construction is continuing with the 100-person camp site fully prepared for the arrival of the modular units this month. A power line is being installed to the camp and the mine portal area and a communications tower will be operational in Q2 2018.
