VANCOUVER, Dec. 12, 2017 /CNW/ - Leagold Mining Corporation (TSX:LMC; OTCQX:LMCNF) ("Leagold" or "the Company") has completed the Bermejal Underground drill program at the Los Filos mine in Mexico. The program totalled 56,191 metres in 111 holes. Highlights of 10 new holes include 7.0 grams per tonne ("gpt") over 16.0 metres, 11.0 gpt over 8.6 metres, and 8.4 gpt over 10.6 metres (all capped grades and true widths; see Table 1). These results follow 86 holes previously reported. The remaining 15 holes are in the process of being sampled and assayed.
Leagold CEO Neil Woodyer stated: "The large-scale drill program commenced in April and has been completed on schedule. The program delineated several new areas of high-grade mineralization and has greatly increased the Measured and Indicated resources, based on data available as of August 31, 2017. A further update of the Bermejal Underground mineral resource estimate is in progress and is expected before year end. In addition, the Bermejal Underground ramp development has advanced 175 metres to date and is on track to reach the test mining area in Q2 of next year.
"Operations continue to benefit from improvements made earlier this year. The agglomerator and new overland conveyor will come on line in early 2018. With mine production of 173,551 ounces of gold up to November 30, we remain well positioned to achieve our full year production guidance of 185,000 to 200,000 ounces."
The Bermejal Underground drill program included 62 drill holes in the high-grade Central zone, 38 holes in the East zone, and 11 holes in the West zone. All holes intersected mineralization, and a total of 210 intervals of more than 3 gpt gold over a minimum of 3 metres true width have been reported to date. The multiple intercepts are due to development of oxide skarn mineralization along the intrusive contact, and also at the upper and lower contacts of a shallowly dipping sill that created the opportunity for the high-grade and wide zone of "sub-sill" mineralization.
The Bermejal Underground deposit is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres, providing extensive additional areas for further exploration. The Bermejal Underground mineralization extends approximately 1,600 metres along the strike of the intrusive contact and has a vertical depth extent of over 800 metres.
The Bermejal Underground ramp has advanced 175 metres and the portal has been completed with steel arches and a concrete floor (Figure 1). Although this is an exploration ramp, the development is fully dimensioned for production and permits for production are in place.
Table 1: Drill Program Highlights for Bermejal Underground Deposit
True Width (m)
Grade (g/t Au)
Capped (g/t Au)
Intervals in bold are mentioned in the text of the news release
All intercepts are over 3 gpt when diluted to a minimum true width of 3 metres. Drill hole BU-77-17 intercepted mineralization but diluted below 3 gpt after diluting to 3 metres
UC = Upper Contact of Sill; LC = Lower Contact of Sill; Sill = Oxide within Sill; UI = Intrusive Contact above Junction with Sill; LI = Intrusive Contact below Junction with Sill
Individual assays within the intercepts were capped using 40 gpt limit
Figure 1a: Portal and Ramp for Development of Bermejal Underground
Figure 1b: Portal and Ramp for Development of Bermejal Underground
Doug Reddy, P.Geo., Leagold's Senior Vice President – Technical Services, is a Qualified Person under NI 43-101, and has reviewed and approved the technical contents of this news release on behalf of Leagold.
The Los Filos Mine employs industry standard drilling and sampling procedures. All exploration samples are sent to an ALS Global facility in Guadalajara for preparation, and to Vancouver for analyses by fire assay and ICP. A full quality control and assurance program and protocols are in place and are aligned with best practices including regular insertion of certified reference standards, blanks, and duplicates.
About Leagold Mining Corporation
Leagold is building a new mid-tier gold producer with a focus on opportunities in Latin America. Leagold is based in Vancouver, Canada and is listed on the TSX under the trading symbol "LMC" and trades on the OTCQX market as "LMCNF". The acquisition of the Los Filos Mine, a low-cost gold producer in Mexico, provides an excellent platform for growth.
This news release contains "forward-looking statements" and "forward looking information" (as defined under applicable securities laws), including but not limited to plans for future development of the Los Filos Mine. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" and "anticipates". Forward-looking statements and information, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the Los Filos Mine, risks related to the successful integration of the acquisition; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Leagold operates. Although Leagold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward-looking information are made as of the date hereof and Leagold disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information. Please refer to Leagold's most recent filings under its profile at www.sedar.com for further information respecting the risks affecting Leagold and its business.
SOURCE Leagold Mining Corporation
For further information: please visit the Company website at www.leagold.com or contact: Meghan Brown, Vice President - Investor Relations, +1-604-398-4525, [email protected]