VANCOUVER, BC, March 5, 2021 /CNW/ - Tarachi Gold Corp.(CSE: TRG) (PINK: TRGGF) (Frankfurt: 4RZ) ("Tarachi" or the "Company") is pleased to announce the start of the second phase of underground drilling at the historic La Dura mine on March 1, 2021. The success of the 2020 underground drilling program by Tarachi in holes JAB-20-06/07 demonstrated the potential of the La Dura Zone to continue plunging to the south as indicated in Figure #1. The program entails the completion of four HQ diamond drill holes testing the eastern limits of the zone and exploring its continuation to the south as seen in Figure #2.
In addition to the underground drilling at La Dura, a surface RC drill rig will be mobilized to the Jabali mineral concession in mid-March to test the 400m-long area between the La Dura mine and the artisanal workings at Zaragoza as seen in Figure #3. The priority target in this region is the potential intersection of the main N-S trend with the mineralized Baby Doll zone that appears to trend NE.
Tarachi CEO, Cameron Tymstra stated: "We are looking forward to returning to Jabali with the drill crews to continue exploring around the La Dura mine and to test the 400m-long corridor between La Dura and the Zaragoza workings for the potential to host a mineral resource. With many of the World's economic gold deposits occurring around the intersection of structures, we are keen to bring a surface drill rig in to explore around the interpreted intersection of the two mineralized structures on the property."
The Jabali concession is located 6km west from Alamos Gold's Mulatos mine, a heap leach operation that has produced over 2Moz of gold since 2005 and still contains an estimated 4Moz of gold in reserves and resources. Jabali is host to the historic La Dura underground mine where an estimated 100,000t of ore grading 3g/t Au was previously mined. The La Dura workings are in an intensively silicified and brecciated rhyolite.
Quality Assurance/Quality Control
Core samples were selected by a geologist and sawed in half. One half of the core remains in the core tray and the other half is placed into a plastic bag. Sample tags were submitted into each bag before being sealed and stored at the campsite in a secure area and were later transported by company truck directly to the Bureau Veritas Mineral Laboratories (BVM) in Hermosillo, Sonora, Mexico. At the laboratory, the samples were dried, crushed and pulverized with the pulps being sent airfreight for analysis to BVM in Vancouver, B.C. for 37-element ICP analysis after modified aqua regia digestion. Gold assays are done in Hermosillo by 50-gram fire assay with an atomic absorption spectroscopy finish.
Samples were checked using a 50-gram fire assay with a gravimetric finish for samples greater than 10ppm Au and 1Kg metallic fire assay with duplicate minus fraction analyzed. Both Hermosillo and Vancouver BVM facilities are ISO 9001 and ISO/IEC 17025 accredited. Laboratory control samples comprising certified reference samples, duplicates and blank samples were inserted by the laboratory into the sample stream and analyzed as part of the quality assurance/quality control protocol.
Change of Transfer Agent
The Company has changed its transfer agent to Odyssey Trust Company as of the close of business on March 5, 2021. For information about Odyssey Trust, please visit their website https://odysseytrust.com/. If you have any questions, you can reach to Odyssey directly by visiting www.odysseycontact.com.
About Tarachi Gold
Tarachi Gold is a Canadian-listed junior gold exploration company focused on exploring and developing projects in Mexico. The Company's Tarachi project covers 3,708ha of highly prospective mineral concessions in the Sierra Madre gold belt of Sonora, Mexico in close proximity to Alamos Gold's Mulatos mine and Agnico Eagle's La India mine. Tarachi is also in the process of acquiring the Magistral Mill and tailings project in Durango, Mexico. Magistral includes a 1,000tpd mill and a non- NI 43-101 compliant tailings resource estimated to contain 1.3Mt at 2.05g/t Au which would provide the Company with a near-term pathway to gold production.
Lorne Warner, P.Geo, VP Exploration 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.
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 development of the La Dura mine, including drilling programs and mobilization of drill rigs; future mineral exploration, development and production; and completion of an underground drilling 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; no escalation in the severity of the COVID-19 pandemic; 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: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; 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.