Corazon Gold Corp. (TSX VENTURE:CGW)(OTCBB:RMZFF) is pleased to provide an update of this year’s activities on their Silver Cliff project, located in south-central Colorado. The Property lies within the Hardscrabble district, an historic silver district, where high grade silver production came from numerous mines during the period 1878 to 1894. Silver production was derived from both shear-vein zones in Tertiary volcanic units as well as high grade breccia pipes hosted in pre-Cambrian rocks located within and adjacent to a Tertiary caldera or volcanic center. The breccia pipes are reported to have graded up to 700 ounces of silver per ton (opt Ag) or 24,000 grams of silver per tonne (g/t Ag). Lower grade halos are reported to exist surrounding the high grade pipes and vein zones.
Earlier this year, Corazon staked 74 unpatented mining claims covering approximately 1,100 acres (450 hectares) of available ground in the Hardscrabble district (the “District”). The Company conducted initial reconnaissance surface rock sampling, collected a 20 kg sample on surface at the Kate Deposit for metallurgical testing, and compiled historic data sourced from University archives.
ICN Resources, a company acquired by Corazon late last year, previously entered into an Option to Purchase Agreement with a private third party, for 35 unpatented claims in the District. The recently staked claims cover the remainder of the open ground in the District and include an area with private surface rights which were staked under a Notice of Intent to Locate through the Bureau of Land Management. The remainder of the 74 claims cover land controlled entirely by the BLM. A private Colorado company owns the surface rights in the area of the NOITL, and Corazon is finalizing a surface rights access agreement on this land in order to conduct more detailed exploration work later this year. Corazon is also in advanced discussion with several other private land owners in order to secure important patented land that will complete consolidation of the District.
The District has been the focus of extensive exploration by a number of companies from the mid-60’s to the early 90’s, during which time over 500 drill holes were completed. Corazon has acquired summaries of this historic drill hole data including hole locations, orientations and composited intervals grading greater than 1 opt Ag from publically available data. The most recent exploration in the District was conducted by Tenneco Minerals in the late 80’s and early 90’s. They focused their efforts on advancing the Kate Deposit, which is reported to be a secondary silver-manganese deposit. In a 1989 memo obtained from University archives, Tenneco reported “proven and probable geologic reserves” of 4.16 million tons at a grade of 2.68 opt Ag (91.9 g/t Ag), containing 11.14 million ounces of silver (at 1 opt Ag cutoff). A qualified person has not done sufficient work to classify this historical estimate as current mineral resources, and the issuer is not treating the historical estimate as current mineral resources.
Silver contained within the secondary Kate Deposit is thought to have originated from primary silver mineralization occurring in an area located approximately one mile to the northwest. A 1983 internal CoCa Mines memo, again copied from the University archives, reports a cross-sectional “mineral inventory”, based on 26 drill holes at a 1 opt Ag cutoff, containing 8.3 million tons averaging 2.2 opt Ag (75.4 g/t Ag) for a total of 18.3 million ounces of silver. Again the reader is cautioned that a qualified person has not done sufficient work to classify this historical estimate as current mineral resources, and the issuer is not treating the historical estimate as current mineral resources. Both deposits appear open for expansion based on review of the summary drill hole information compiled. In both areas, Corazon controls portions of the referred to deposits by virtue of claim staking, but is in advanced negotiations to acquire the key patented ground to complete consolidation of the District.
Corazon also conducted limited, reconnaissance surface rock chip sampling with initial results reporting from 0.4 g/t Ag up to a high of 1,100 g/t Ag from a total of 17 samples. Additional geologic mapping and rock chip sampling has recently been completed on the Property and these results will be released when available. In the area of the Kate Deposit, a 20 kg surface sample of ore was collected for the purpose of initial metallurgical test work. Assays of splits from this bulk sample returned an average of 7 opt Ag (240 g/t Ag), with 10.9% manganese. Silver-manganese ores are known to have challenging extraction characteristics, and early study of potential flow sheets is important to evaluating potential economic scenarios. Tenneco’s test work utilizing cyanide extraction reportedly only achieved 45 to 50% silver recovery. Corazon is evaluating other methods of extraction and will report results from this initial test work when it is completed by Hazen Labs in Golden, Colorado. The Company plans to finalize acquisition of other lands in the near future, and will initially focus on the Kate Deposit. The Kate Deposit is a blanket supergene zone that is exposed at surface and would have a low strip ratio. Surface overburden and barren rhyolite have been removed in a rock quarry operation permitted in 2011.
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We acknowledge the [financial] support of the Government of Canada.