Altan Rio Intersects High Grade Gold at the Khavchuu Project, Northern Mongolia

VANCOUVER, June 13, 2012 /CNW/ - Altan Rio Minerals Limited, TSX.V: AMO ("Altan Rio" or the "Company") today announces results of the inaugural (Phase 1) drilling campaign at the 100% owned Khavchuu gold exploration project ("Khavchuu") covering 71.4 km2 in northern Mongolia (Figure 1). These initial results are promising with down-hole gold and arsenic anomalies intersected over a substantial 4 x 6 km area, including a high grade intersection in hole KH-05 at 11.49 g/t gold within Boroo-type host rocks and alteration.

HIGHLIGHTS

  • Seven wide-spaced reconnaissance core holes for 1,902.2 m were completed from March to May
  • Five of the seven holes intersected significant gold and/or arsenic anomalies, the main geochemical indicators for orogenic gold deposits in the Boroo region
  • Hole KH-05 intersected high grade gold (11.49 g/t over 1 m) in a structurally complicated area on the edge of a large Boroo Complex granitoid
  • Holes KH-01 and KH-03 intersected low angle structures that contained Boroo complex granitoids with similar alteration over intervals as broad as 80 meters, with locally anomalous gold

Evan Jones, Altan Rio's President and CEO, remarked: "I am pleased to share with our investors this discovery of high grade gold mineralization in a Boroo-style geological setting with potential large tonnage possibilities. Our exploration team has successfully demonstrated its ability to target and explore the large Khavchuu gold system, only 10 km from Centerra Gold's Boroo mine and mill complex. We are encouraged by these results and plan to advance the gold discovery with a focused exploration campaign."

PHASE I DRILL RESULTS
Overall the results were surprisingly positive for a first-pass reconnaissance drill campaign consisting of seven drill holes over such a large area. Low angle structures were identified, similar to those that host mineralization at the nearby Boroo and satellite deposits. The presence of anomalous gold and elevated arsenic is promising as it could represent the distal portions of economic mineralization, perhaps several hundred meters away.

The high grade gold discovered in KH-05 is of particular importance as it represents a single mineralized hole in a very large area of anomalous geochemistry and geophysics with the IP anomaly broadening and increasing in amplitude to the north (see Figure 2). This new gold discovery zone is an exciting development, and certainly adds to the prospectivity of the Khavchuu project. Given its strategic location, being in close proximity to Centerra's Boroo mill complex, follow-up drilling is certainly warranted.

Table 1.  Summary of Khavchuu drill program and gold and arsenic assay results

                           
Hole ID T.D.
(m)
Az
(°)
Dip
(°)
Easting
(UTM, m)
Northing
(UTM, m)
Elev (m) Gold Intercept (≥0.1 g/t)
Arsenic Intercept (≥100 ppm)

From (m) To (m) Width* (m) Grade§
KH-01 311.3 315 -60 573,883 5,399,158 1,063 255.50 258.40 2.90 0.27 g/t
KH-02 302.1 240 -60 568,604 5,400,148 1,088 4.65
12.10
248.60
including
6.10
15.50
251.90
1.45
3.40
3.30
0.20
300 ppm
241 ppm
516 ppm
2,401 ppm
KH-03 300.3 300 -60 573,775 5,398,678 1,092 238.30
95.30
161.70
176.80
208.70
216.95
230.30
250.30
240.30
96.25
162.50
178.20
210.70
218.95
240.30
270.80
2.00
0.95
0.80
1.40
2.00
2.00
10.00
20.50
0.14 g/t
296 ppm
123 ppm
317 ppm
163 ppm
118 ppm
502 ppm
304 ppm
KH-04 301.8 220 -60 567,519 5,400,369 1,014 29.80
including
68.50
101.75
114.20
including
174.40
53.50
73.50
103.50
118.05
174.80
23.70
1.90
5.00
1.75
3.85
0.85
0.40
364 ppm
943 ppm
175 ppm
157 ppm
449 ppm
1,555 ppm
260 ppm
KH-05 302.3 295 -60 571,121 5,395,304 1,159 208.50
21.30
209.50
21.95
1.00
0.65
11.49 g/t
325 ppm
KH-06 83.8 155 -60 569,005 5,394,920 1,090 No significant results
KH-07 300.6 235 -60 568,503 5,394,874 1,025 No significant results
Total 1,902.2                  
Notes:  * Intercept width shown is thought to represent an approximate true width, but true width could be up to 50% less depending on the angle of the structure and the angle of the drill hole.
  §  Assays by Stewart Group (part of ALS) and Actlabs.
   

FOLLOW-UP EXPLORATION PLANS
The Company believes the results of our Phase I drill program are very encouraging and is therefore planning follow-up exploration to advance the discovery. Detailed geophysics are planned to delineate zones of higher IP chargeability within the structures confirmed by drilling, with additional soil geochemical surveys planned as well. Drilling will then be targeted to further test zones of known mineralization and the most promising geophysical anomalies.

Stewart Group (part of ALS Minerals), Ulaanbaatar, and Actlabs Asia, Ulaanbaatar, prepared the drill-core samples, produced the sample pulps and performed all gold and arsenic assays. Gold was analyzed by fire assay. Arsenic was analyzed using aqua regia digestion and ICP measurement. The Company maintains a QA-QC program regarding the preparation, shipping, and checking of all samples, including the use of certified standard reference materials and blanks, as well as field and pulp duplicates.

About Altan Rio
Altan Rio, founded in 2007, is based in Vancouver BC, Canada. Using innovative exploration targeting techniques and leveraging long-term in-country experience, the company explores large-scale gold and copper projects in Mongolia, one of the world's most prospective mineral regions. The Company's license holdings in Mongolia, which total more than 153,310 hectares (378,873 acres), contain significant zones of newly identified primary gold and copper mineralization across a very large area of unexplored ground.

For more information please visit the company's website at www.altanrio.com.

Competent Person Statement
J. Kelly Cluer, Altan Rio's Exploration Director, and a Qualified Person as defined by National Instrument 43-101, has reviewed the preparation of the scientific and technical information in this press release in respect to the Khavchuu Project.

On behalf of Altan Rio Minerals Limited,

"Evan Jones"

Evan Jones,
President & CEO


This press release may contain forward looking statements including those describing Altan Rio's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Altan Rio and its management.

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.

 

 

 

 

Image with caption: "Figure 2. Khavchuu drill hole locations and results summary on compiled IP chargeability map (CNW Group/Altan Rio Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120613_C8179_PHOTO_EN_15078.jpg

Image with caption: "Figure 1. Khavchuu gold project in the Yeroogol Gold Belt of northern Mongolia in relation to other gold deposits in the region (CNW Group/Altan Rio Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120613_C8179_PHOTO_EN_15079.jpg

SOURCE Altan Rio Minerals Limited

For further information:

Kelly Earle
Corporate Communications Manager
Altan Rio Minerals Limited
Tel: +1 604 639 5899 ext. 220
Email: info@altanrio.com
Web: www.altanrio.com

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Altan Rio Minerals Limited

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