VANCOUVER, BC, Aug. 27, 2020 /CNW/ - Tarachi Gold Corp. (CSE: TRG) (FRA: 4RZ) ("Tarachi" or the "Company") is pleased to announce that diamond drilling at the Tarachi Gold project (the "Project") is proposed to commence before the end of August. Drilling will be conducted by BYLSA Drilling S.A. DE C.V. of Hermosillo, Sonora. The Company plans to complete over 5,000 metres of diamond drilling in the coming months.
Tarachi will initially target five prospects with structurally controlled concentrations of high-grade gold. Initial testing will be in close proximity to known mineralization to determine the controls and orientation to the gold zones. The Company will also drill untested targets and down-dip projections to these zones. Tarachi will start the drill campaign at the historic La Dura mine on the Jabali concession where on August 20, 2020 the Company announced channel sample results of 6.34 g/t gold over 62.55 metres. Tarachi has over C$10 million to fund the Company's aggressive drilling program with a team of three highly experienced geologists and supporting staff.
"Drilling is the most exciting phase of mineral exploration and the Company is looking forward to developing its understanding of the gold zones along strike and to depth and the potential in discovering new zones. The Company's recent geological and structural mapping and rock sampling program has provided new interpretations to the controls of the gold mineralization in several prospects which will greatly aid our drilling program towards success," commented CEO Lorne Warner.
An exploration camp has been erected in the Tarachi area and stringent Covid-19 protocols have been put in place to ensure the safety of local communities and the team in the field.
The Project consists of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for at total of 2,560 hectares in the prolific Mulatos gold belt. The Project is approximately 220 km by air east of the City of Hermosillo, and 300 km south of the border between the United States of America and Mexico. The Jabali claim covers the La Dura historic mine and several other small-scale mines. The gold mineralization and geology at Jabali is believed to be similar in character to the gold mineralization at the Mulatos mine. Alamos Gold Inc., in a 2003 annual report, identifies the Jabali project as being part of the "Los Bajios" mineralized trend which the report suggests has the potential to host another Mulatos size resource. The Tarachi project is an early stage exploration project and the mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company's property.
The Mulatos gold trend is part of the Sierra Madre gold and silver belt that also hosts the operating Mulatos gold mine immediately southeast of the La India property and the Pinos Altos mine and the Creston Mascota deposit 70 kilometres to the southeast. Mineralization occurs within silicified rhyodacite and is associated with vuggy silica alteration, and breccia with iron oxide (hematite and specularite). Native gold occurs along late-stage fracture coatings in the breccias and is locally associated with barite. Past exploration has returned values from trace to 30g/t Au in grab samples. Native gold has also been identified in outcrop on the southern extension of the La Dura mine trend.
Lorne Warner, P.Geo, President, CEO and Director of the Company is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.
Stock Option Grant
The Company also announces that it has granted stock options to directors, officers, employees and consultants of Tarachi, under the Company's stock option plan. An aggregate amount of 1,300,000 stock options have been granted with an exercise price of $0.69 and will vest immediately. They are exercisable for a period of four years from the date of the grant and are subject to the policies of the TSX Venture Exchange.
Contact Information: For more information and to sign-up to the mailing list, please contact:
Lorne Warner, CEO
Tel: (250) 574-5767
Email: [email protected]
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward–Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward–looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward–looking statements or information. These forward–looking statements or information relate to, among other things: the exploration and development of the Project; future mineral exploration, development and production including the identification of a work program.
Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Tarachi, future growth potential for Tarachi and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; costs of exploration and development; the estimated costs of development of exploration projects; Tarachi's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect Tarachi's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward–looking statements or forward-looking information and Tarachi has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: satisfaction or waiver of all applicable conditions to closing fluctuations in general macro–economic conditions; fluctuations in securities markets and the market price of Tarachi's common shares; and the factors identified under the caption "Risk Factors" in Tarachi's management discussion and analysis. Readers are cautioned against attributing undue certainty to forward–looking statements or forward-looking information. Although Tarachi has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Tarachi does not intend, and does not assume any obligation, to update these forward–looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
SOURCE Tarachi Gold Corp.
For further information: Lorne Warner, CEO, Tel: (250) 574-5767, Email: [email protected]