Category: Uncategorized
- Published: 29 November -0001
News Release: PilaGold's San Ramon Project Returns Excellent Gold Results
PilaGold Inc. ('Pila') is pleased to announce results of the first phase work program conducted at the San Ramon project located in south-central Nicaragua.
The San Ramon camp hosts several major high-grade epithermal gold quartz veins, a number of which were mined in the early to mid 1900s. Surface and underground workings evidence strike lengths in excess of 1500m on individual veins. Pila's sampling indicates that the oxidized wall rocks have the potential to host significant gold mineralization. A number of the historic mines were mapped and sampled by Pila in this program and there are many prospective areas still to be investigated in this historic gold camp that extends over 100km2.
La Leonesa Vein
Narrow high grade veins were mined at La Leonesa from 1902 to 1919. The veins strike east/west and dip steeply to the south. There are no production records and the depth of mining is unknown. Old workings suggest a strike length of over 1,000m for the Leonesa Vein. The area has seen no drilling or geophysics.
Pila sampled along section lines cross-cutting the vein to test gold grades in the altered volcanic wall rocks over a 500m strike length. Individual samples range from 1.0m to 2.5m and results reported are contiguous chip samples from new trenches or cleaned out cuts. All samples taken on the reported lines are listed.
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Sample No. Length (m) g/t Au Comments
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Section Line 627200
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Footwall Samples
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105162 2.5 0.34 Open
105161 2.0 2.30
105160 2.0 2.22
105159 1.1 1.89
105158 1.1 3.77 Adjacent to vein
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Hangingwall Samples
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105163 2.0 0.83 Adjacent to vein
105164 2.0 3.13 Open
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Section Line 627250
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Hangingwall Samples
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105215 1.5 0.71 Adjacent to vein
105217 1.5 1.82
105259 1.5 0.37
105185 2.0 1.98
105186 2.0 2.07
105187 2.0 5.03
105188 2.0 6.80 Open
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Section Line 627325
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105251 2.0 0.58 Adjacent to vein
105250 2.0 1.17
105249 2.0 2.00
105248 2.0 4.03
105247 2.0 2.39
105246 2.0 2.28
105245 1.0 3.13
105182 2.0 3.93
105183 2.0 1.67
105184 2.0 0.53
105260 1.5 1.29 Open
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Section line 627420
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Footwall Samples
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105224 1.3 5.10 Adjacent to vein,
Closed
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Hangingwall Samples
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105227 2.0 4.33 Adjacent to vein
105228 1.8 4.23 Open
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Section line 627460
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Footwall Samples
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105189 1.5 3.87 Adjacent to vein,
Open
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These results indicate that gold mineralization extends a significant distance from the vein and in fact grades can increase with distance from the vein. The trenching exposed oxidized, brecciated andesites. Further work is needed to define the limits of the gold mineralization.
Rosamond Vein
Located 1.5km southeast of the Leonesa, the Rosamond Vein strikes east-west and dips to the north at 45 degrees to 60 degrees. The vein was mined over a strike length of 500m, the depth of mining is unknown. Sampling tested the gold potential in the hangingwall and footwall zones over 150m strike length.
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Sample No. Length (m) g/t Au Comments
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Section Line 628100
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Footwall Samples
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105066 1.5 8.26 Adjacent to vein
105067 2.0 1.35
105068 2.5 12.20
105268 2.0 12.48
105269 2.0 0.12
105270 1.5 2.10 Open
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Section Line 628125
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Footwall Samples
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105271 2.4 0.35 Adjacent to vein
105272 1.9 13.60
105273 1.9 1.37
105274 2.2 5.80
105275 1.6 0.46
105276 1.6 0.17
105277 1.6 0.48 Open
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Section line 628250
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Hangingwall Samples
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105084 2.0 2.7 Open
105083 2.0 4.1
105079 2.0 7.2 Adjacent to vein
105078 1.5 12.1 Vein
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Footwall Samples
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105080 1.5 1.1 Adjacent to vein
105081 2.0 0.5
105082 2.0 0.6 Open
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Two samples were taken of quartz on surface to the west of the area of
known mining.
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Sample No. Length (m) g/t Au Comments
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105066 grab 6.67
105067 grab 10.63
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A second vein 300m north of Rosamond known as La Lima was sampled at a
small adit. This vein has not been mined.
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Sample No. Length (m) g/t Au Comments
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105202 1.2 4.0 Vein
105205 0.6 11.0 Vein
105208 1.0 23.3 Vein
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Hanging wall and footwall samples on this vein 105203-4-6-7 returned less than 300ppb Au.
Mina Canton
The Canton vein system, which was mined over a vertical extension of 150m along 350m of strike length in the first half of the 1900s, is located 500m to the northeast of the Rosamond vein. Several unmined veins or extensions were investigated, including some broad areas of jasperoid and stockwork zones.
Results indicate low values in the footwall to the main vein, while the hangingwall remains mostly untested due to topography. One sample taken in the hangingwall on section line 629215E returned 6.07 g/t Au (sample 105291).
Old trenches on the hillsides above the vein were cleaned out, extended and sampled with the following results.
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Sample No. Length (m) g/t Au Comments
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Section Line 628810
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105303 0.8 1.39 North
105302 2.0 1.98
105301 2.0 1.75
105300 2.0 0.39
105299 1.5 0.53
105298 1.5 0.45
105297 1.5 0.59 South
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Section Line 628865
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105296 2.5 0.66 North
105325 1.5 2.09
105326 1.5 0.29
105307 1.4 4.67
105308 1.4 0.12
105309 1.0 0.05 South
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A sample of the vein at entrance to the main adit returned 42.2 g/t Au. (sample 105292 at section line 629250).
The narrow high grade El Hule vein may be a western extension of the Canton vein. The vein returned gold results up to 50g/t Au over less than 0.5m. Hanging wall and foot wall could not be sampled. Float samples still further west have returned grades assaying up to 11.70 g/t Au indicating potential for greater than 500m extension to the Canton vein system.
Cerro La Laguna
La Laguna vein is 500m east of the eastern limits of the Leonesa vein and may well be an extension. Vein outcrops occur at the crest of an east-north-east trending ridge over a strike length of 1,000m. Except for a few old pits and trenches, there are no signs of mining in this area.
Quartz vein float and outcrop were sampled and chip samples were taken from the altered volcanic rocks adjacent to the vein. Samples results ranged from 349 ppb to 1.6 g/t Au with the majority of the samples greater than 1 g/t Au.
Interpretation
Pila's results indicate that significant potential still exists in the San Ramon mining camp. Many more veins and large alteration zones are known to exist to the north, south and east of the area described above and first pass sampling in many of these areas has returned results that warrant follow-up. The holdings of the San Ramon Project have been extended to cover all known mineralized outcrop and associated stream geochemical anomalies. The next phase work program will include mechanized trenching with drilling planned for early 2004.
Background Information
Pila has an option to earn a 70% interest in Chorti Holdings A.V.V. the corporation that holds a 100% interest in the San Ramon concession. To acquire this interest, Pila has to make cash payments totaling approximately US$350,000 and spend US$2 million in exploration expenditures on the concession over a three year period. Following the earn in Mr. Frank Mena, the optionor of the concession, has the right to elect to go forward with a 30% working interest or reduce to a 4% NSR. If Mr. Mena elects to reduce to a 4% NSR Pila has the right to purchase 2% upon a production decision.
Qualified Person
Mr. Harmen Keyser, FGAC, P.Geol., a Director of PilaGold, is the Qualified Person as defined in NI 43-101, and has verified that the results presented in this press release have been accurately summarized from the official assay certificates provided to the Company. All samples were prepared and analysed at the CAS Labs Inc. (CAS) facility in Tegucigalpa, Honduras. CAS, based in Washington State, has provided analytical services to the gold and silver mining/exploration industries since 1989.
ON BEHALF OF THE BOARD
Simon T. Ridgway, President
Shares Issued: 15.3 million
PilaGold Inc. Simon T. Ridgway President (604) 801-5432 or Toll Free: 1-888-627-9378 (604) 662-8829 (FAX) Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.pilagold.com
NEWS RELEASE TRANSMITTED BY CCNMatthews The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.
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