23 Apr 2012 07:00
23 April 2012
Touchstone Gold
First Quarter 2012 Update
8,300 m of drilling completed, known gold mineralization doubled, and new high-grade gold zone identified at Rio Pescado;
Promising expansion into South Bolivar with Santa Rosa acquisition;
New dual exploration programme announced
London, 23 April 2012 - Touchstone Gold Limited (AIM:TGL) ("Touchstone Gold" or the "Company") is pleased to provide a quarterly exploration and corporate update for the period ended 31 March 2012.
Highlights
·; Stage 3 drilling programme completed: over 8,300 metres across 74 diamond drill-holes. Stage 3 drilling has:
- Connected previously separate gold zones along strike;
- Identified high-grade gold zone to south of Filodehambre.
·; Selected drilling results include:
- 8.75 g/t gold over 28.25 metres, including 9.88 g/t gold over 24.25 metres, and 20.90 g/t gold over 5.7 metres from hole LPD - 1279;
- 8.70 g/t gold over 16.80 metres, including 17.56 g/t gold over 8.15 metres, and 27.60 g/t gold over 4.50 metres from hole LPD - 1286;
- 9.13 g/t gold over 15.00 metres, including 24.92 g/t gold over 4.45 metres from hole LPD - 1162;
- 5.84 g/t gold over 21.75 metres, including 20.28 g/t gold over 4.20 metres from hole LPD - 1159.
·; Surface exploration programme completed, including:
- 68 line km of Induced Polarization (IP), Very Low Frequency (VLF), and ground magnetics geophysics;
- 2,470 soil, 118 stream sediment, and 60 rock samples collected and analyzed;
- LIDAR survey recently completed.
·; Asset portfolio in Colombia diversified with option to acquire 90% of important, 57 square kilometre Santa Rosa Project in the south of the Bolivar Department.
·; Stage 4 drilling programme finalised and fully funded for 2012.
David Wiley, Touchstone Gold CEO, commented: "Touchstone Gold is very pleased to present this quarterly overview, demonstrating how far we have come as a Company since the IPO last June. We have significantly de-risked and upgraded our Rio Pescado project through systematic drilling and ground exploration, and we have expanded our portfolio into another part of the country with the acquisition of the Santa Rosa Project and its great prospects in the south of Bolivar. We still have assay results from the stage 3 drilling programme that will be available to the market in the coming weeks."
David Wiley added: "We are looking forward to the remaining months of 2012 which promise to be both busy and exciting. We anticipate that the stage 4 drilling programme will commence in the summer at Rio Pescado, along with a preliminary exploration programme at Santa Rosa. This exploration programme is generating great interest in our team and we will provide more details when plans are finalised. In addition to this dual exploration programme, Touchstone Gold will continue to pursue acquisitions, and progress further options to expand our North American shareholder base."
Summary of exploration and stage 3 drilling programme results
The exploration programme, which commenced shortly after the June IPO, has taken a systematic approach from the beginning, utilising proven exploration techniques to advance the Rio Pescado project and highlight drill targets.
Geophysical surveys (IP, Ground Magnetics, and VLF) was followed by cutting over 100 line kilometres of a large exploration grid, which continues to expand as the Company begins to evaluate the south-western quadrant of the concession package. This grid has enabled the team to collect over 2,400 soil samples, which have provided reliable indications of the locations of zones of gold mineralization. The company recently flew a LIDAR survey over the Rio Pescado area and results are pending.
The stage 3 drilling programme, consisting of over 8,300 metres across 74 diamond drill holes, was completed in March (see Figure 1). To date, the Company has reported 68 of the stage 3 holes, and will release the remaining assay results from 6 holes shortly. Highlights of the stage 3 holes to date are found below in Table 1. Comprehensive assay results can be found on the Company's website.
Table 1. Selected Stage 3 Drilling Results
Drill Hole Number | Intersection (m) | Gold Grade (g/t Au) | ||
From | To | Width | ||
LPD - 1279 | 56.45 | 84.70 | 28.25 | 8.75 |
includes | 60.45 | 84.70 | 24.25 | 9.88 |
and | 60.45 | 69.50 | 9.05 | 6.41 |
and | 70.35 | 76.05 | 5.70 | 20.90 |
and | 77.00 | 84.70 | 7.70 | 7.98 |
LPD - 1286 | 6.10 | 22.90 | 16.80 | 8.70 |
includes | 12.25 | 20.40 | 8.15 | 17.56 |
and | 15.25 | 19.75 | 4.50 | 27.60 |
and | 17.00 | 19.75 | 2.75 | 39.50 |
LPD - 1162 | 48.35 | 56.70 | 15.00 | 9.13 |
includes | 48.35 | 55.65 | 6.40 | 17.32 |
and | 50.20 | 55.65 | 4.45 | 24.92 |
LPD - 1159 | 45.25 | 68.50 | 21.75 | 5.84 |
includes | 45.25 | 49.25 | 4.00 | 2.20 |
and | 52.25 | 57.25 | 5.00 | 4.83 |
and | 62.20 | 67.00 | 4.20 | 20.28 |
LPD - 1124 | 10.60 | 19.00 | 8.40 | 14.07 |
includes | 11.50 | 14.50 | 3.00 | 35.04 |
LPD - 1157 | 0.00 | 23.20 | 23.20 | 4.03 |
includes | 0.00 | 13.20 | 13.20 | 5.98 |
and | 15.20 | 18.20 | 3.20 | 3.39 |
LPD - 1273 | 30.50 | 39.90 | 9.40 | 9.04 |
includes | 35.55 | 36.70 | 1.15 | 62.30 |
and | 38.20 | 39.90 | 1.70 | 5.03 |
LPD - 1281 | 21.30 | 39.20 | 17.90 | 4.29 |
includes | 22.50 | 25.10 | 2.60 | 22.18 |
and | 26.75 | 31.00 | 4.25 | 1.74 |
and | 32.80 | 35.05 | 2.25 | 2.80 |
and | 37.20 | 38.30 | 1.10 | 3.34 |
LPD - 1165 | 42.40 | 57.05 | 14.65 | 4.24 |
includes | 42.40 | 54.30 | 11.09 | 4.96 |
and | 45.40 | 48.40 | 3.00 | 13.01 |
LPD - 1131 | 67.60 | 70.00 | 3.40 | 17.58 |
includes | 68.30 | 69.00 | 0.70 | 83.70 |
* All samples collected were analysed utilizing ACME Analytical Labs of Vancouver BC., Canada and were subject to a 36 element ICP-MS analysis. Over limit samples were subject to gravimetric analysis.
Key achievements of the Company's stage 3 drilling programme included connecting Pepas and Filodehambre along strike through drilling the Gap Area, identifying new high-grade areas at Filodehambre, and defining a new zone of high-grade gold mineralization, the 1141 Zone, to the south of Filodehambre.
1141 Zone
The 1141 Zone has proven to be a significant discovery for Touchstone Gold. The area is located approximately 200 metres to the south of Filodehambre and contains west dipping, near surface, high-grade gold bearing quartz veins. The area is structurally controlled to the east and down-thrown to the west by a near vertical fault, as well as truncated to the north and offset to the south by north-easterly shears. The 1141 Zone, much like Pepas and Filodehambre, occurs within a fault block, which the Company expects continues south of our drilling to date. The width of the zone is approximately 75 metres. The true thickness of the vein system ranges from 1 to 25 metres, and has been tested to a depth of 75 metres.
Corporate
In March, the Company announced it had entered into an option agreement with a private Colombian company to earn a 90% interest in Santa Rosa Project in South Bolivar, Colombia. The highly prospective area hosts multiple gold bearing vein systems and is located in a gold province that is home to a number of international gold mining and exploration companies. Our option consists of 4 concessions covering a total land area of 57 square kilometres.
In February, Touchstone Gold announced the appointment of Northland Capital Partners Limited as joint corporate broker.
Outlook
The Company now plans to test the southerly strike extension and the westerly down-dip of the vein system through its stage 4 drilling programme. New permits for these areas are being processed. Once applications have been submitted and approval has been received the Company will continue an aggressive programme of definition and reconnaissance drilling in the area. The stage 4 drilling programme is fully funded and expected to commence during the summer.
The company has recently completed an NI 43-101 Technical Report on its Rio Pescado project. Over the course of the remaining year, Touchstone Gold will continue to pursue opportunistic opportunities to grow its property packages at Rio Pescado, Santa Rosa, and other prospective exploration areas.
Touchstone is continuing to investigate options for expanding its North American shareholder base.
For Figure 1 - Rio Pescado Project - Drill Hole Location Map, please click on the link below:
http://www.rns-pdf.londonstockexchange.com/rns/8160B_-2012-4-22.pdf
Mr John Nicholson, P.Geo has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Mr. Nicholson is chief geologist of the Company and is a Fellow of the Royal Geographical Society, has a BSc. from the University of British Columbia, and has been an accredited member of the Association of Professional Engineers and Geoscientists of British Columbia since 1992. Mr. Nicholson is supervising the work programmes on the Rio Pescado Project.
For further information please contact:
Touchstone Gold David Wiley Chief Executive Officer
Canaccord Genuity Limited (Nominated Advisor and Joint Corporate Broker) John Prior Seb Jones
Northland Capital Partners Limited (Joint Corporate Broker) Gavin Burnell John-Henry Wicks
Merlin Ian Middleton Anca Spiridon |
Tel. +1 647 260 1247
Tel. +44 20 7523 8350 Tel. +44 20 7523 8350
Tel. +44 20 7796 8800 Tel. +44 20 7796 8800
Tel. +44 20 7726 8400 Tel. +44 20 7726 8400 |
About Touchstone Gold
Touchstone Gold is a gold exploration company and the 100% owner of the Rio Pescado Project in Colombia, comprising four concessions over a total area of 39 square kilometres in the highly prospective Segovia Gold Belt. It owns further options on the Santa Rosa Project, in the South Bolivar area of Colombia, comprising four concessions over a total area of 57 square kilometres. With a philosophy of creating value by the systematic exploration and development of the Company's existing assets as well as the acquisition of suitable exploration and development mineral projects, the Company's long-term intention is to build a significant gold exploration and production company.