VANCOUVER, March 6, 2018 /CNW/ - Montego Resources Inc. (CSE: MY) (the "Company" or "Montego") is pleased to announce an update in regards to gold potential on their Taylor Silver Property (Property) located in White Pine County Nevada.
The Taylor Silver Property is an advanced stage silver-gold target located 24 km south of Ely, Nevada with access from a maintained mine road. Mineralization here is a Carlin style bulk silver-gold epithermal, high-silica, low sulfide replacement deposit in flat-lying Devonian-age silty carbonate rocks (Guilmette Formation). An historical resource completed by Silver Predator in 2013 (based on 480 drill holes totalling 28,244m) outlined a combined M&I resource of 8.894 Mt at 1.89 oz/t Ag containing 16.82M ounces Silver ("Taylor Silver Project Technical Report, White Pine County, Nevada, USA", by Chadwick, Turner and Hollenbeck, dated March 18, 2013. This Technical report can be found under the Silver Predator profile (May 2013) at: www.sedar.com).
The Company considers these results to be an historical estimate under National Instrument 43-101 (NI 43-101). While the Company considers this historical estimate to be relevant to investors, a qualified person for the Company has not done sufficient work to classify the historical estimate as a current mineral resource as defined by NI 43-101 and the Company is not treating this historical estimate as a current mineral resources.
At this time there is no gold resource delineated on the Taylor Silver project. Work to date has generally focused on drilling and building a silver resource. Most samples sent to the lab were assayed for silver only. Silver Predator recognized the geologic setting as one in which gold is often found in Nevada and began a systematic good science approach which included gold assays in all the work they completed (2011-2014).
Historic mining on the project focused on silver with very little effort to find or produce gold. Silver King operated a 1,320 ton per day counter current decantation cyanide leach plant from April 1981 to March 1984. According to an internal Silver King memo (1988), production from 1981 to 1984 was 1, 471,317 tons (US short tons) at an average grade of 3.50 oz/t Ag. Metal recovery was reported as 3.77 million ounces of silver and ~3,000 ounces of gold (Marston & Marston Inc., 2006, Technical Evaluation of the Taylor Silver Mine for Fury Explorations, Ltd.)
The 2013 Silver Predator Technical report built their resource using 480 drillholes. Of the 17,212 silver assays used in their resource calculations, only 30%+- of those assays had corresponding gold assays.
Silver Predator recognized the significance of the gold potential in this Carlin System and began a program (2011-2014) of modern exploration including drilling, soils and detailed bedrock mapping and sampling that included gold assays. Soil work in 2012 and 2013 identified anomalous gold at or near surface (http://www.silverpredator.com/documents/20130121SPDNewsRelease.pdf), RC drilling in 2014 identified anomalous gold values starting at the surface (http://www.silverpredator.com/documents/SPDNR14-07TaylorDrillResultsFINAL_000.pdf)
Significant Drilling results from the Silver Predator 2014 drill program include:
- SPT-66 with 18.3 meters of 1.02 g/t gold starting at surface;
- SPT-65 with 24.4 meters of 0.68 g/t gold starting at surface and including 12.2 meters of 0.85 g/t gold; and
- SPT-62 with 12.2 meters of 0.78 g/t gold and 88.3 g/t silver starting at 71.6 meters.
Montego recognizes the fact that gold will play a very significant role moving forward as we advance the Taylor Silver project. The scope of work in the coming programs will include:
- Incremental expansion of the soils coverage on the entire Taylor Project. Soil results should highlight areas of anomalous gold/silver which would further generate drill targets. Target areas will include those areas not already within the historic resource envelope.
- Detailed mapping has identified steeply dipping structures (and including rhyolite dikes) which will be used to generate targets at depth for developing silver and gold continuity with already existing mineralization. Further mapping will be completed in an on-going effort to fully understand the geology and structural setting of the Taylor property and, define near term drill targets for gold and silver.
- Assay available pulps and rejects from past drilling stored on site which were initially assayed for silver only. Montego will visit the storage facility located in Springer Nevada. Cross checking the database for silver assays used in the historic resource calculations that don't already have gold assays will identify those samples which can be collected near term for further gold assay. This task will deliver Montego a near term concept on continuity and volume of gold within the existing silver mineralized envelope.
Montego will use a multi-element geochemical approach, paying close attention to Nevada sediment hosted gold deposit pathfinders such as silver, antimony, arsenic and mercury.
William Cronk, Director commented "I am excited about the role gold will play as we advance the Taylor Silver Project. Silver Predator did a great job identifying gold in the system and we have no doubt that it is there. How much and how relevant gold is to the project will be determined by drilling."
The scientific and technical data contained in this news release was prepared and reviewed by William Cronk, P.Geo., a non-independent qualified person to the Company. Mr. Cronk is responsible for ensuring that the geologic information provided in this news release is accurate and acts as a qualified person pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
ON BEHALF OF THE BOARD OF MONTEGO RESOURCES INC.
Chief Executive Officer
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
SOURCE Montego Resources Inc.
For further information: Montego Resources Inc., Suite 800, 1199 West Hastings Street, Vancouver, BC, V6E 3T5, T 604-283-1722, F 888-241-5996