Fredonia Mining Inc. (“Fredonia” or the “Company”) (TSXV: FRED), is
pleased to announce the completion of the initial phase of drilling
at its Eldorado Monserrat (“EDM”) property, located in Santa Cruz,
Argentina.
Six HQ diamond drill core holes were drilled at
each of La Herradura and Monserrat Oeste. In total 12 holes were
drilled for 3,424.3m.
The field base at EDM will be reoccupied
commencing January 31, 2022 after the holiday recess. Preparations
are underway for the next follow-up drilling phase, as well as
further exploration and drilling.
Geological interpretation of the drilling
sections will assist in determining the next phases of exploration.
This information in parallel with the assay data will allow
realistic planning of the future drilling that will target
identified structures to maximise discovery along strike / dip and
focus on potential high grade zones.
Two geological mineralised zones are becoming
evident. In the northern sector of the property, the zone from
Monserrat Oeste(west) extending east through Bajo Perdernal, Main
Veins to Monserrat Este (east), (including Gladys and Anita) and in
the southern sector the trend west from Beethoven and including La
Herradura. These trends are subparallel to the regional mineralised
trend that control the mineralisation at Cerro Vanguardia.
La Herradura is located on a mineralised
regional structural trend which extends west from the Beethoven
prospect (a vein swarm of 5km strike by up to 2km wide) and further
west there are other named prospects, such as Pamela-los Domos,
which are yet to be fully explored.
The remaining assay results for La Herradura are
now available. The highlights are tabled below. The drilling has
added further credibility that the potential for a large tonnage
Au-Ag occurrence with included high grade zones exists at La
Herradura. The model being developed has been refined after recent
mapping and in conjunction with the drilling, which identified a
potential diatreme surrounded by an extensive brecciated host
system, the dimensions of which are as yet undefined being
geologically open in all directions. The Fredonia geological team
believe further drilling is warranted to exploit this model.
Currently drill sections are being interpreted
and integrated with the recent geophysics survey to define the next
drill programme.
Table of best intersections
Hole ID |
From |
To |
Interval |
Au g/t |
Ag g/t |
HDDH029 |
53.00 |
74.00 |
21.00 |
0.61 |
9.4 |
HDDH029 |
125.00 |
132.00 |
7.00 |
0.61 |
1.2 |
HDDH031 |
161.00 |
198.00 |
37.00 |
1.04 |
26.1 |
HDDH033 |
71.00 |
91.00 |
20.00 |
0.57 |
7.0 |
HD034 |
83.00 |
90.50 |
7.50 |
0.52 |
4.82 |
Including |
84.00 |
84.50 |
0.50 |
5.90 |
19.91 |
Reported interval
length are down hole widths and not true widths. |
Drill hole statistics have previously been
reported for the recent drilling at La Herradura.
Historical drillholes in the same prospect area
are:
Table of (selected) historic drill
intersections, La Herradura
Hole ID |
From |
To |
Interval |
Au g/t |
Ag g/t |
HDDH001 |
124.00 |
140.00 |
16.00 |
0.61 |
29.7 |
HDDH007 |
83.00 |
92.00 |
9.00 |
1.17 |
12.7 |
HDDH012 |
126.50 |
128.10 |
1.60 |
5.49 |
3.8 |
HDDH011 |
147.70 |
199.00 |
51.30 |
1.11 |
45.8 |
HDDH013 |
68.00 |
163.70 |
85.70 |
1.02 |
11.0 |
including |
68.00 |
77.00 |
9.00 |
7.43 |
51.7 |
and |
149.70 |
180.00 |
30.30 |
0.72 |
32.9 |
HDDH015 |
139.00 |
153.50 |
14.50 |
0.86 |
20.5 |
HDDH022 |
150.00 |
168.00 |
18.00 |
1.16 |
14.7 |
HDDH026 |
95.00 |
135.00 |
40.00 |
0.48 |
16.6 |
HDDH027 |
216.00 |
229.00 |
13.00 |
1.38 |
83.7 |
The recent drill holes at La Herradura were
drilled to target both the roughly east west mineralised trend
including the central diatreme at La Herradura ‘hill’ and to expand
the gold anomalism identified in the historic drilling which
extends over 1,100m of strike to depths of >200m.
Drill holes have intercepted hydrothermal
breccias, veins and stockworks, hosted in a phreatomagmatic
breccias, felsic domes and dikes that intrude the andesite flows
which form the country rock.
Gold mineralisation is related to a quartz +
sericite alteration and minor bladed calcite and adularia,
interpreted as evidence of a boiling zone in an epithermal system.
The shallow and distal zones show a chlorite + hematite + pyrite
alteration, while in the deeper sections there are veins of platy
calcite + fluorite. Superimposed on the system is an alteration
halo of kaolinite + alunite and vuggy quartz, which occurs in
shallow and medium-deep sectors.
The drilling whilst of limited meters has
enhanced the project’s potential and confirmed the presence of wide
intersections of mineralised material with higher grade inclusions.
The system is interpreted to remain open in all directions and
Fredonia believes more drilling is warranted.
Monserrat Oeste (west)
The recent drilling at Monserrat Oeste consisted
of five HQ diamond drill holes and an additional one drill hole in
Bajo Pedernal (subparallel and ~200m west of Monserrat Oeste), for
a total of 1,841m. More than 567 samples (including standards,
blanks, and duplicates) were submitted for gold and silver fire
assays and multielement ICP to Alex Stewart (a certified laboratory
independent of Fredonia).
Table of drill-hole
statistics
Drill hole |
Coord. East |
Coord. North |
Elevation |
Azimuth |
Dip |
Length |
MODDH001 |
2528490 |
4638590 |
220m |
270 |
-55 |
348m |
MODDH002 |
2528484 |
4638163 |
218m |
270 |
-55 |
324m |
MODDH003 |
2528458 |
4638065 |
202m |
270 |
-50 |
297m |
MODDH004 |
2528600 |
4637900 |
206m |
275 |
-55 |
281m |
MODDH005 |
2528534 |
4638595 |
194m |
270 |
-55 |
311m |
MODDH006 |
2528414 |
4637989 |
219m |
270 |
-55 |
281m |
Total |
|
|
|
|
|
1841m |
The Monserrat Oeste area is located on a
northwest dilational 1.6km corridor that contains the mineralized
zones expressed as veining and brecciation with a north to
north-northeast attitude, dipping 55° to 75° to the east. The
mineralised structure is open in both directions and at depth.
The sparce surface expression is characterised
by a silica cap, secondary oxidation, leaching, breccia and
residual quartz textures. The relative anomalism of pathfinder
elements (As, Sb) over anomalous gold values at surface is
considered a significant vector to the depth potential.
Interpretation of historical drilling suggests that the mineralized
zones are characterized by argillic alteration with veins composed
of variably barite, calcite, pyrite, sphalerite, galena, secondary
silver minerals, iron oxides, limonite, and clays, and a second
silica-rich alteration, (silicification) which is further
interpreted as the predominant event for the gold
mineralization.
All six holes drilled intersected the target
structure and contained anomalous to significant gold / silver with
isolated high grade intervals. The drilling has confirmed the
geological model has merit. The gold-silver intersections have
enlarged the area of known mineralisation identified by historic
drilling and demonstrate the potential for further strike and down
dip extension and the possibility of further high grade Au-Ag
zones.
Table of best intersections
Hole ID |
From |
To |
Interval |
AuEq g/t |
Au g/t |
Ag g/t |
MODDH001 |
168 |
169 |
1 |
4.96 |
4.81 |
52.7 |
MODDH001 |
174.3 |
176.7 |
2.4 |
18.05 |
0.18 |
1,491.00 |
incl. |
176.2 |
176.7 |
0.5 |
84.79 |
0.38 |
7,037.40 |
MODDH002 |
72.1 |
72.45 |
0.35 |
2.71 |
0.08 |
219.9 |
MODDH002 |
302 |
303.4 |
1.4 |
1.55 |
1.38 |
25.4 |
MODDH004 |
87 |
91 |
4 |
2.41 |
0.51 |
163 |
incl. |
87 |
87.5 |
0.5 |
9.86 |
2.15 |
660.4 |
MODDH005 |
91 |
92 |
1 |
2.48 |
0.01 |
206.1 |
1. Reported interval length are down hole widths
and not true widths.2. Gold equivalent (“AuEq”) is calculated using
metal prices of US$ 1,800/oz for Au and US$ 24/oz for Ag.The
equation used is: AuEq g/t = Au g/t + (Ag g/t ÷ 75).3. Au eq
assumes Au recovery of 90%. The limited metallurgical studies by
Fredonia (selective Bottle rolls from Main Veins material) have
indicated high >90% recovery of gold in oxide material. The
Cerro Vanguardia mine to the east of EDM with similar
mineralisation reports recoveries in the high 90% for
Au.
Historic drill hole intersections of
note
Hole ID |
From |
To |
Interval |
Au Eq g/t |
Au g/t |
Ag g/t |
DM-13 |
188.9 |
190.5 |
1.6 |
7.07 |
1.08 |
507.7 |
DM-18 |
211 |
211.67 |
0.67 |
12.87 |
12.43 |
140 |
DM-19 |
135.52 |
138.4 |
2.88 |
4.58 |
3.2 |
141.8 |
DM-19 |
128.9 |
130.4 |
1.5 |
6.00 |
0.63 |
453 |
DM-22 |
219.96 |
221 |
1.04 |
7.91 |
8.62 |
13 |
DM-33 |
170 |
175 |
5 |
4.91 |
3.17 |
171.8 |
DM-34 |
216.1 |
219 |
2.9 |
5.49 |
0.41 |
426.5 |
DM-40 |
195.23 |
196.9 |
1.67 |
12.56 |
13.51 |
33 |
DM-43 |
140 |
140.4 |
0.4 |
10.40 |
1.19 |
778 |
MVDDH012 |
179.5 |
180 |
0.5 |
19.94 |
3.78 |
1,377.50 |
1. Reported interval length are down hole widths
and not true widths.2. Gold equivalent (“AuEq”) is calculated using
metal prices of US$ 1,800/oz for Au and US$ 24/oz for Ag.The
equation used is: AuEq g/t = Au g/t + (Ag g/t ÷ 75).3. Au eq
assumes a recovery of 90%. The limited metallurgical studies by
Fredonia (selective Bottle rolls from Main Veins material) have
indicated high >90% recovery of gold in oxide material. The
Cerro Vanguardia mine to the east of EDM with similar
mineralisation reports recoveries in the high 90% for Au.
Monserrat Oeste requires further drilling to
define the project’s true extent – currently open all directions.
Interpretation of drill sections, integrating historic drilling
into the new sections is underway. This will provide the foundation
for further exploration drilling and the targeting of potential
high grade zones.
Main Veins
The Main Veins extend for over 250m roughly
north-south and contains multiple veins forming a package of 25m
and greater in width with additional hanging wall veining. This
composite structure is open to the north and merges with the
Abanico prospect area in the south. Historic drilling on the Main
Veins (including in 2018 2,121m drill programme by Fredonia) was
used by ACA Howe International to prepare a technical report in the
form of NI 43-101F1 which outlined the potential for a metal
content estimated up to 200,000ozs Au and 6Mozs of Ag; the block
model only extending to -150m depth. Additional drill core sampling
was recommended which potentially could increase the current
estimate by 20%. This report supports the economic potential of the
area.
SUMMARY OF EXPLORATION TARGET IN THE MAIN VEIN
AREA |
Area |
Depth below surface |
Bulk Density |
Tonnes |
Grades |
Lower Range |
Upper Range |
Lower Range |
Upper Range |
Main Vein area |
150 m |
2.4 g/cm3 |
3.5 million |
6.5 million |
0.6 g/t Au20 ppm Ag |
1.0 g/t Au35 ppm Ag |
Camila C (part of the Main Vein area) |
100 m |
2.4 g/cm3 |
300,000 |
500,000 |
1.5 g/t Au40 ppm Ag |
3 g/t Au80 ppm Ag |
The potential quantity, grade, and metal content
of the Main Veins exploration target disclosed is conceptual in
nature and there has been insufficient exploration to define a
mineral resource and it is uncertain if further exploration will
result in the target being delineated as a mineral resource.
Fredonia intends to undertake a resampling
programme of the ‘shoulders’ of the historic drill intersections of
significance as well as projections of these intervals to adjacent
drill holes with insufficient or no sampling.
A three line IP survey conducted in 2012 to the
north of the Main Veins identified the interpreted extension of the
mineralised structure under the quaternary basalt over 1.5km north
of the most northern drill hole at Main Veins.
There are several other significant areas of
identified Au-Ag anomalism with varying levels of exploration which
Fredonia will evaluate and consider for drilling in early 2022.
These include:
Abanico
This southerly extension of the Main Veins
comprises at least three distinct veins traceable over 1,000m of
strike. Sporadic historic channel sampling and limited drilling
have returned encouraging results which warrant further systematic
exploration.
Bajo Perdernal
The Bajo Perdernal system has very little
surface expression (jasperoidal veins) and was once considered part
of the Monserrat Oeste structure. However, mapping, soil ‘lag’
sampling and geophysical evidence suggests it is a separate
mineralised structure and potentially occupies geological break
juxtaposing the Chon Aike and Bajo Pobre formations which hosts
Monserrat Oeste and Main Veins.
The structure remains unexplored and on the
basis of geological / structural setting, ground geochemistry and
drill information potentially gold bearing system.
Monserrat Este (East)
This silicified trend reaching 8m in width is
located 2.5km east of Main Veins, within the trend is a series of
chalcedonic veins which extend discontinuously over 1,200m before
merging in the south east into the ‘Anita’ prospect for a further
600m. Neither areas have been drilled. Detailed geological mapping
(1: 1,000) and sawn channel sampling will be completed in Q1
2022.
(see attached map)
https://www.globenewswire.com/NewsRoom/AttachmentNg/e88057b4-2b28-4d10-8add-f6350d2b570d
Southern
trend:
This west north west mineralised corridor
extending westerly from Cerro Vanguardia is interpreted as a
subparallel, regional mineralised trend that extends east ward
continuing through to Beethoven and Herradura then on further west
to a relatively underexplored area: Pamala-Los Domos.
A recent discovery compounding the potential of
this merging trend is the ‘Sinter zone prospect’ located less than
500m to the north east of La Herradura. An east north east trending
float train culminates in a sinter zone of 5-10m in width mapped
over 200m. The orientation of the Sinter zone is considered very
significant as this orientation is usually post mineralisation. The
identification of another prospective zone in this trend further
emphasises the potential of the area.
“We are very pleased with the results of the
first stage in our exploration program and encouraged by the
significant percentage of successes in our drill holes,” commented
Estanislao Auriemma, Fredonia’s CEO. “Drilling to date has
confirmed both in La Herradura and Monserrat Oeste the previously
interpreted theoretical models based on historical drilling. We
anticipate further drilling will not only increase the size of
these prospects, but the grades intersected.”
“The results support the confidence to initiate
the second stage of the exploration program to begin at the end of
January, and to also include other prospective areas preceding a
second round of drilling to begin at the end of February. The
objective remains to continue to confirm and increase the potential
of the El Dorado Monserrat Property.”
Quality Assurance/Quality
Control
All core samples were submitted to the principal
Alex Stewart Laboratories in San Julián city for preparation, and
in Mendoza city for the analysis. Alex Stewart Laboratories is
independent of Fredonia. All samples were analyzed for Au and Ag by
fire assay/ AA finish 50 g, plus a 39-element ICP-AR finish.
Fredonia followed industry standard procedures for the work with a
quality assurance/quality control (QA/QC) program. Blanks and
reference material of High grade/ Low grade Gold and High grade/
Low grade Silver standards were included with all sample shipments
to the principal laboratory. Field duplicates were made from Coarse
Reject. Fredonia detected no significant QA/QC issues during review
of the data. Mr. Marc J. Sale, is a qualified person as defined by
Canadian National Instrument 43-101 and has read and approved the
technical contents of this release.
Data Verification
Mr. Sale has previous experience with the EDM
property and the historical QA/QC procedures undertaken for the
preparation of previous results, and has previously conducted the
verification activities on drilling and sampling results described
in Fredonia’s technical report entitled “Technical Report on the El
Dorado-Monserrat Property In Santa Cruz Province, Argentina” dated
February 15, 2021 (the “EDM Technical Report”), subject to the
limitations described therein. Mr. Sale was not physically present
to inspect and take verification samples from drill core in the
most recent drilling campaign, but did conduct desktop-based
verification of drill results against data-base information
provided by management to ensure the assays results presented are
those in the database. Assay reports were not available to the QP
at the time of disclosure for verification.
About Fredonia
Fredonia, incorporated under the laws of the
British Virgin Islands, directly or indirectly, owns 100% interest
in certain license areas (totaling approximately 18,300 ha.)
(collectively, the “Project”), all within the Deseado Massif
geological region in the Province of Santa Cruz, Argentina,
including the following principal areas: El Aguila, approx.
9,100ha, Petrificados, approx. 3,000ha, and the flagship, advanced
El Dorado-Monserrat property covering approx. 6,200ha located close
to Anglo Gold Ashanti’s Cerro Vanguardia mine, subject to a 1.5%
net smelter return royalty on the EDM project, 0.5% net profits
interest on Winki II, El Aguila I, El Aguila II and
Petrificados.
For further information: Please visit the
Company website www.fredoniamanagement.com or contact: Carlos
Espinosa, Chief Financial Officer, Direct: +1-647-401-9292, Email:
cespinosa@slgmexico.com
Cautionary Note Regarding
Forward-Looking Statements
This press release contains certain
“Forward-Looking Statements” within the meaning of applicable
securities legislation relating to the Company and the EDM project,
including statements regarding the prospectivity of the EDM project
for gold and silver mineralization, including the potential for
metal recoveries any mineral processing activity, and the Company’s
future exploration plans. Words such as “might”, “will”, “should”,
“anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast”
and similar terminology are used to identify forward looking
statements and forward-looking information. Such statements and
information are based on assumptions, estimates, opinions and
analysis made by the Company in light of its experience, current
conditions and its expectations of future developments as well as
other factors which it believes to be reasonable and relevant.
Forward-looking statements and information involve known and
unknown risks, uncertainties and other factors, including, without
limitation, the factors described in the Company’s filing statement
dated June 22, 2021 available on SEDAR at www.sedar.com under the
heading “Risk Factors” that may cause actual results to differ
materially from those expressed or implied in the forward-looking
statements and information and accordingly, readers should not
place undue reliance on such statements and information and the
Company can give no assurance that they will prove to be correct.
The statements in this press release are made as of the date of
this release. The Company undertakes no obligation to update
forward-looking statement made herein, or comment on analyses,
expectations or statements made by third parties in respect of the
Company or its securities, other than as required by law.
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