TriStar Discovers Significant New Gold Reefs at Castelo de Sonhos
August 1, 2017
(Scottsdale, AZ) Assay results from reverse circulation (RC) drilling at the Castelo de Sonhos (CDS) gold project of TriStar Gold Inc. (the “Company” or “TriStar”) continue to show significant intervals in new holes. “We’re glad that the new drilling is consistent with our exploration target concept,” says Nick Appleyard, TriStar’s President and CEO. “We’ve known since last year that we’ve got considerable potential for growing the resources along the strike of the mineralized conglomerate. But the July results from in-fill holes in the heart of Esperança South now demonstrate significant upside potential even in areas where indicated resources were previously reported. Thick intervals running well above the deposit average point to potential additional resources beyond the pit shell that constrained the 2014 resource.”
Drilling will continue through August into early September, reaching a planned 120 to 150 RC holes, at which time a new mineral resource will be estimated, followed by the completion of an initial scoping study (PEA). The PEA is scheduled to be completed before year end.
Figure 1. Cross-section through Esperança South, showing previous drilling (dark green hole) and new drilling (lighter green) that has identified new gold reefs beyond the pit shell previously used to constrain resources.
New reefs identified in heart of the deposit
Figure 1 shows a cross-section through an area where indicated resources were reported in 2014. On this section only one drill hole (CSH-12-083) was previously available for resource estimation; one thick mineralized interval in this hole controlled the location of the pit shell within which resources were reported. New holes within ±50m of this section now make it apparent that the pit shell used for the next resource update will be larger, and will include thick reefs (with true thickness >10m) that lie outside the previous pit shell, with gold grades above the project average. In particular, CSH-17-191 encountered 14m running at an average of 3.2 g/t, with several shorter intervals above 5 g/t.
Grades and thicknesses remain strong in extensions
Figure 2 shows the location of the 93 RC holes that have been completed in the Esperança South and Center regions of the project. All RC holes are vertical, and drilled to a target depth of 120m. A few holes were terminated short of their 120m target due to local conditions; any hole that reaches less than half of its target length is deemed to be abandoned prematurely, and will be redrilled. Table 1 summarizes the significant intervals (using a 0.4 g/t cutoff) not previously reported in holes for which assays were available for more than half of the sample intervals.
Several individual intervals in these new holes run above 10 g/t, with CSH-17-188 reaching 27.8 g/t. Some of the individual reefs in these new holes are considerably thicker than the deposit average, which has historically been approximately 4m. With all of the new drilling being vertical, to a target depth of 120m, all of the reported significant intervals are within reach of an open pit. Although diamond drilling has identified strong mineralization below 120m, the upcoming PEA will focus only on a stand-alone open pit mine, and will not address possible longer term potential from underground mining.
Figure 2. Location of new RC drilling at Castelo de Sonhos. RC holes whose significant intervals have been previously reported are shown in dark green. All the RC holes whose significant intervals are summarized in Table 1 are shown in light green and lie in Esperança South. RC holes with assays pending are shown in blue; black circles mark old diamond drill hole locations.
|Table 1. Significant intervals for RC holes not previously reported.|
|Hole||From||To||Length1 and Au grade|
|SC17-177||No significant intervals|
|RC17-178||23||25||2m @ 1.3 g/t|
|RC17-179||59||60||1m @ 0.4 g/t|
|78||79||1m @ 0.7 g/t|
|RC17-1802||21||24||3m @ 1.8 g/t|
|45||46||1m @ 0.5 g/t|
|110||111||1m @ 0.6 g/t|
|115||116||1m @ 0.5 g/t|
|118||120||2m @ 0.5 g/t|
|RC17-182||32||34||2m @ 0.4 g/t|
|RC17-183||45||46||1m @ 1.2 g/t|
|98||100||2m @ 2.8 g/t|
|RC17-184||No significant intervals|
|RC17-185||28||30||2m @ 2.0 g/t|
|66||68||2m @ 10.6 g/t|
|Including||66||67||1m @ 18.1 g/t|
|109||110||1m @ 9.1 g/t|
|RC17-186||42||43||1m @ 6.5 g/t|
|RC17-187||31||35||4m @ 1.5 g/t|
|RC17-188||27||31||4m @ 8.3 g/t|
|Including||30||31||1m @ 27.8 g/t|
|RC17-190||47||52||5m @ 3.4 g/t|
|Including||47||48||1m @ 7.6 g/t|
|Including||51||52||1m @ 5.1 g/t|
|114||115||1m @ 2.5 g/t|
|RC17-191||20||21||1m @ 0.5 g/t|
|27||29||2m @ 2.4 g/t|
|35||38||3m @ 1.2 g/t|
|50||64||14m @ 3.2 g/t|
|Including||50||51||1m @ 5.3 g/t|
|Including||54||55||1m @ 5.5 g/t|
|Including||58||59||1m @ 14.6 g/t|
|Including||62||63||1m @ 5.1 g/t|
|RC17-192||24||25||1m @ 1.4 g/t|
|98||99||1m @ 1.5 g/t|
|105||107||2m @ 4.1 g/t|
|Including||106||107||1m @ 7.1 g/t|
|RC17-193||<50% of assays available|
|RC17-195||No significant intervals (53% of assays available)|
|RC17-196||80||84||4m @ 0.6 g/t|
|98||100||2m @ 2.2 g/t|
|RC17-202||60||67||7m @ 4.8 g/t|
|Including||65||67||2m @ 11.0 g/t|
|1All new holes are vertical, through reefs that dip at 25-30°, making the down-hole thicknesses reported here 10-15% longer than true thickness.|
|2Assays were previously available for the bottom half of Hole 180, where significant intervals were previously reported. The 21-24m and 45-46m intervals in this hole are reported here for the first time.|
Sample analysis procedures and QA/QC protocols
Sample preparation and analytical work for all of the results reported here were carried out by ALS laboratories, with sample preparation done at its lab in Goiania, Goias and 1Kg Leachwell assays at its lab in Lima, Peru; both of these ALS facilities are ISO 9001:2008 and 14001:2004 certified. ALS uses industry-standard analytical methods and have internal QA/QC programs to monitor the reliability of their work. Independently of the labs, TriStar runs its own external QA/QC program, using standards, blanks and duplicates inserted into the sample processing stream at a rate of one per 10 samples.
Update on new Brazilian mining law
On July 25, 2017, Brazilian President Michel Temer signed into law three provisional measures, referred to as MP 789, MP 790 and MP 791, that affect mining projects throughout the country. They take effect immediately, with Congress being allowed a reasonable period of time to review and amend them.
MP 789 addresses taxation and royalty issues; its principal effect on the Castelo de Sonhos project is to increase the government royalty on gold production from 1% to 2%.
MP 790 modernized the country’s mining code, parts of which had become inconsistent with other regulations since it was last updated, more than 20 years ago. These changes include: an initiative to align Brazil’s reporting codes with international reporting codes such as NI 43-101; the ability to extend the period during which geology and engineering studies can be done; ending the possibility of a mineral concession being claimed if the holder of the rights is late in filing certain reports; specific guidance on mine closure; and changes to the schedule of reporting deadlines. All of these are helpful to TriStar as it works to advance the Castelo de Sonhos project.
“We welcome all of these changes,” says Nick Appleyard. “They improve transparency in the regulatory framework, and are designed to relieve companies and the regulators from political pressure. All of this should make it easier and quicker for us to bring Castelo de Sonhos through the feasibility and permitting process, and to construct a successful and profitable mine”.
TriStar's Vice-President, R. Mohan Srivastava (P.Geo.), is the QP for this press release and has prepared or supervised the preparation of the scientific or technical information in this press release.
TriStar Gold is an exploration and development company focused on precious metals properties in the Americas that have potential to become significant producing mines. The Company’s current flagship property is Castelo de Sonhos in Pará State, Brazil. The Company’s shares are listed on the TSX Venture Exchange under the symbol TSG. Further information is available at www.tristargold.com.
For further information, please contact:
TriStar Gold Inc.
President and CEO
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward looking statements in this press release include, the scope and success of the planned exploration program at the Castelo de Sonhos project and the Company's opinion that it has clear title to the Castelo de Sonhos property Such forward-looking statements are based upon the Company's reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the Company’s projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.