Alio Gold Intersects 2.03 g/t au Over 48.2 Metres at Ana Paula
April 04 2018 - 7:00AM
Alio Gold Inc (TSX:ALO) (NYSE AMERICAN:ALO) (“Alio
Gold” or the “Company”), is pleased to provide the results of the
second and third drill hole from its surface drill program at its
100% owned Ana Paula project in Guerrero, Mexico. The 3,800 metre
surface diamond drill program was initiated in January 2018 and
consists of six drill holes of 600 to 700 metres each targeting the
complex breccia extension below the proposed open-pit.
Both the second hole (AP-18-284) and third hole
(AP-18-285) returned positive results from the near surface
hydrothermal breccia south of the proposed pit and on the southern
edge of the alteration halo. Both holes also intersected the
complex breccia below the proposed pit.
Highlights include:
-
- Hydrothermal breccia south of the
proposed pit: 0.94 g/t gold over 44.2m (from 62.0m to 106.2m)
- Complex breccia below the proposed
pit: 1.91 g/t gold over 40.9m (from 456.2m to 497.1m)
-
- Hydrothermal breccia south of the
proposed pit: 0.90 g/t gold over 32.4m (from 17.1m to 49.5m)
- Complex breccia below the proposed
pit: 2.03 g/t gold over 48.2m (from 497.7m to 545.9m)
“The results from the surface drilling continue
to be extremely encouraging. Firstly, they continue to
confirm and provide further detail on the extent and continuity of
the complex breccia mineralization below the proposed pit,” said
Greg McCunn, Chief Executive Officer. “In addition, the
hydrothermal breccia structure that lies south of the proposed pit
continues to show mineralization over wide intersections near
surface and may turn out to be a second mineralized breccia pipe
altogether. We are looking forward to seeing the results from
the next three drill holes to see how this develops.”
The Company has initiated an extensive
exploration program at Ana Paula which includes in addition to the
surface drill program:
- Exploration drilling from an underground decline targeting an
extension to the high-grade breccia below the proposed open pit and
a skarn target below the breccia (decline construction commenced
with drilling expected in Q3 2018);
- Surface drilling to test a high priority target that is 100
metres north of the proposed open pit (drilling to commence
following the completion of the surface drill program in Q1 2018);
and
- Regional exploration work on the 56,000 hectare land package
including an airborne magnetic survey targeting further breccia or
skarn targets (ongoing in 2018).
The current program from surface continues to
advance with 3,102 metres of the proposed 3,800 metres program
drilled to date. The fourth and fifth hole have been
completed and the last hole in the program is underway.
Figure 1 - Surface drill holes
projectionhttp://www.globenewswire.com/NewsRoom/AttachmentNg/9c074c26-dd9d-4e26-90df-f4c91fb2f1a0
Current Results from Surface Drilling
2018
Hole NB |
Azimuth |
Dip |
Depth From |
Depth To |
Au (gpt) |
Interval length (m) |
Estimated True Width |
AP-18-284 |
0 |
-55 |
62.0 |
106.2 |
0.94 |
44.2 |
16.4 |
AP-18-284 |
|
|
120.2 |
135.5 |
1.29 |
15.3 |
5.7 |
AP-18-284 |
|
|
153.4 |
167.7 |
0.90 |
14.3 |
5.3 |
AP-18-284 |
|
|
339.0 |
392.5 |
1.34 |
53.5 |
N/A |
including |
|
|
355.0 |
357.0 |
10.35 |
2.0 |
|
and including |
|
|
376.8 |
378.0 |
8.86 |
1.2 |
|
and including |
|
|
392.0 |
392.5 |
5.73 |
0.5 |
|
AP-18-284 |
|
|
414.0 |
423.0 |
1.63 |
9.0 |
N/A |
AP-18-284 |
|
|
427.0 |
429.0 |
0.95 |
2.0 |
N/A |
AP-18-284 |
|
|
436.3 |
438.3 |
5.16 |
2.0 |
N/A |
including |
|
|
437.3 |
438.3 |
9.02 |
1.0 |
|
AP-18-284 |
|
|
456.2 |
497.1 |
1.91 |
40.9 |
N/A |
including |
|
|
461.0 |
462.5 |
8.80 |
1.5 |
|
and including |
|
|
495.1 |
497.1 |
15.50 |
2.0 |
|
AP-18-284 |
|
|
526.7 |
549.7 |
1.15 |
23.0 |
N/A |
AP-18-284 |
|
|
567.0 |
572.4 |
1.02 |
5.3 |
2.0 |
AP-18-285 |
0 |
-63 |
17.1 |
49.5 |
0.90 |
32.4 |
13.3 |
including |
|
|
17.1 |
25.9 |
0.70 |
8.8 |
3.6 |
and including |
|
|
31.9 |
41.0 |
1.39 |
9.1 |
3.7 |
and including |
|
|
44.0 |
49.5 |
1.08 |
5.5 |
2.3 |
AP-18-285 |
|
|
102.6 |
120.2 |
0.68 |
17.6 |
7.2 |
AP-18-285 |
|
|
178.7 |
182.0 |
0.85 |
3.3 |
1.3 |
AP-18-285 |
|
|
300.7 |
308.7 |
0.86 |
8.0 |
3.3 |
AP-18-285 |
|
|
339.7 |
348.8 |
5.36 |
9.2 |
N/A |
including |
|
|
339.7 |
341.1 |
24.10 |
1.5 |
|
and including |
|
|
347.3 |
348.8 |
5.85 |
1.5 |
|
AP-18-285 |
|
|
393.7 |
399.7 |
0.65 |
6.0 |
2.5 |
AP-18-285 |
|
|
416.1 |
418.9 |
1.62 |
2.8 |
1.1 |
AP-18-285 |
|
|
435.1 |
437.1 |
5.31 |
2.0 |
0.8 |
AP-18-285 |
|
|
449.0 |
450.0 |
2.78 |
1.0 |
0.4 |
AP-18-285 |
|
|
497.7 |
545.9 |
2.03 |
48.2 |
N/A |
including |
|
|
499.2 |
500.7 |
10.95 |
1.5 |
|
and including |
|
|
515.4 |
519.4 |
4.05 |
4.0 |
|
and including |
|
|
535.7 |
536.7 |
12.35 |
1.0 |
|
and including |
|
|
542.9 |
544.3 |
9.20 |
1.4 |
|
Note on true width calculation:For the complex breccia and
surrounding halo mineralization and in the monolithic breccia
(MBX), the calculation of a true width is inappropriate since these
units are not tabular. For the mineralization outside of these
units (i.e. sediments (SED) and intrusive (INTRS)) the true width
can be estimated since the mineralization is likely following the
stratigraphy.
Co-ordinates
Hole ID |
Easting |
Northing |
Elevation |
Length |
AP-18-284 |
410100 |
1997685 |
1054 |
590 |
AP-18-285 |
410122 |
1997710 |
1056 |
585 |
About Alio Gold
Alio Gold is a growth oriented gold mining
company, focused on exploration, development and production in
Mexico. Its principal assets include its 100%-owned and
operating San Francisco Mine in Sonora, Mexico and its 100%-owned
development stage Ana Paula Project in Guerrero, Mexico. Located
within the highly prospective Guerrero Gold Belt on 56,000 hectares
of underexplored land the Ana Paula Project is a high-grade, high
margin project currently in the definitive feasibility stage. An
underground decline to provide access for an exploration drill
program has been initiated. The drill program will target the
continuation of the high-grade gold mineralization below the
proposed pit which has the potential to significantly enhance the
robust economics of the project. The Company recently announced an
agreement to acquire Rye Patch Gold, including its 100% owned
Florida Canyon Mine and all of its resource and exploration
projects along the Oreana and Cortez Gold trends. The acquisition
is expected to be completed in late May 2018. The Company
also has a portfolio of other exploration properties, all of which
are located in Mexico.
Qualified Person
The scientific and technical content of this
news release has been reviewed and approved by Pierre Desautels, P.
Geo, a ‘Qualified Person’ as defined by National Instrument 43-101
– Standards of Disclosure for Mineral Projects who is an
independent consultant to the company.
Quality Assurance/Quality
Control
Drill holes reported in this press release were
drilled using HQ sized diamond drill bits. Company personal are
located at the at the drill site. Contractors and employees of Alio
Gold conducted all logging and sampling. The core was logged,
marked up for sampling using standard lengths of approximately 1.5
meters. Samples are then collected by sawing a ½ of the HQ core
using a diamond saw with the remaining ½ portion retained for
inspection at the core logging facility. The samples were
catalogued and placed into sealed bags and securely stored at the
site until it was shipped to sample preparation laboratory owned by
ALS Chemex in Guadalajra, Mexico. The core was dried and crushed
and pulverized to 85% passing 75 microns. The pulps were then
shipped for assay to the ALS Chemex located in Vancouver, Canada.
At that location, the samples were analysed for gold using fire
assay with an atomic absorption finish (FA-AA) on a 50 gram charge.
Samples returning over 10 grams per tonnes are re-assayed using a
fire assay with a gravimetric finish. Samples were also analyzed
for a suite of 35 elements using Aqua Regia Inductively coupled
plasma atomic emission spectroscopy (ICP-AES). Over limits for
silver, arsenic, zinc were re-assayed using a ore grade ICP-AES
method. Quality control procedures included the systematic
insertion of blanks, duplicates and sample standards into the
sample stream. In addition, The Labs inserted their own quality
control samples.
Source: ALO
For further information, please
contact:Lynette GouldVice President, Investor
Relations604-638-8976lynette.gould@aliogold.com
Neither the TSX nor its Regulation Services
Provider (as that term is defined in the policies of the TSX) nor
the New York Stock Exchange MKT accepts responsibility for the
adequacy or accuracy of this news release.
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