Drill Results at Picacho Deliver 11.28 Meters of 15.57 Grams Gold and 32.41 Grams Silver
CHICAGO, IL, Jun 18, 2007 (MARKET WIRE via COMTEX) -- Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) and Lateegra Gold Corp are pleased to announce results from the Phase I drill program at El Picacho, Sonora, Mexico. In July 2006, Tara Gold signed an Option Agreement with Lateegra Gold Corp. to acquire up to a 70% interest in the Picacho Gold Mine by spending a minimum of U.S.3.5 million, delivering 600,000 shares, and achieving a minimum tonnes per day of production.
Lateegra Gold Corp, as operator, is providing the results from 13 additional drill holes on its epithermal gold-silver El Picacho project.
This first phase drill program conducted by Lateegra consisted of 2,569 meters in 14 drill-holes designed to confirm and expand upon historic data derived from 22 previously drilled holes and sampling from within existing underground workings. A total of 13 of the wide spaced drill holes from this latest program tested approximately 700 meters of strike length on the El Picacho structure along the strike extent of underground workings. Drill hole MPDH07-008 targeted the structure approximately 500 meters to the northwest of the other 13 holes and outside of the area of underground development.
Results include 6.13 meters grading 4.73 grams per tonne (g/T) gold (Au) and 60.26 g/T silver (Ag) in drill hole MPDH07-014, 9.43 meters grading 7.80 g/T Au and 72.89 g/T Ag in MPDH07-002, and 11.28 meters grading 15.57 g/T Au and 32.41 g/T Ag in MPDH07-013. Assay results from the first drill hole, MPDH07-001, reported in a press release on April 25, 2007, were 5 meters (true thickness of 4.3m) of 12.81 g/T Au and 27.80 g/T Ag. A location map of the drill holes can be viewed on the company's website. The results of the drilling are presented in the table below:
EL PICACHO STRUCTURE - MINERALIZED INTERVAL WEIGHTED AVERAGE
True
Hole From To Interval Width Au Ag
Number (m) (m) (m) (m) g/T g/T
======== ======== ======== ======== ======== ========
*MPDH07-001 80.5 85.5 5.00 4.33 12.81 27.80
-------- -------- -------- -------- -------- --------
MPDH07-002 126.75 128.9 2.15 1.74 1.94 20.07
-------- -------- -------- -------- -------- --------
and 133.65 145.3 11.65 9.43 7.80 72.89
-------- -------- -------- -------- -------- --------
MPDH07-007 155.5 159.6 4.10 3.73 1.16 2.98
-------- -------- -------- -------- -------- --------
and 164.5 183.5 19.00 17.28 0.84 1.16
-------- -------- -------- -------- -------- --------
incl. 164.5 170.5 6.00 5.46 1.25 0.62
-------- -------- -------- -------- -------- --------
MPDH07-008 167.37 167.87 0.50 0.48 3.32 106.00
-------- -------- -------- -------- -------- --------
MPDH07-010 151.85 155.35 3.50 3.17 4.58 24.20
-------- -------- -------- -------- -------- --------
MPDH07-013 127.95 142.45 14.50 11.28 15.57 32.41
-------- -------- -------- -------- -------- --------
incl. 132.65 140.5 7.85 6.11 23.59 39.68
-------- -------- -------- -------- -------- --------
MPDH07-014 155.2 157.9 2.70 1.72 1.95 17.87
-------- -------- -------- -------- -------- --------
and 162.7 172.3 9.60 6.13 4.73 60.26
-------- -------- -------- -------- -------- --------
incl. 166.9 172.3 5.40 3.45 6.99 99.12
-------- -------- -------- -------- -------- --------
* Reported in Stockwatch April 25, 2007
MPDH07-003, 004, 005, 006, 009, 011 and 012 contained no significant
values.
The Company is very pleased with these results as they provide both verification of historically reported drill-hole data, as well as confirming continuity of the vein along strike and to depth well away from the existing mine workings. The El Picacho vein structure remains open to depth and along strike in both directions.
"This first phase drilling and the data collected have really helped our team better understand the nature of the El Picacho structure," says CEO Chris Verrico, "We are now aware of the plunging, high grade ore zones within the El Picacho structure and will be targeting some of these ore shoots in our second phase drill program."
The El Picacho structure will be the primary focus of the company's Phase II, 5,000 meter, drill program estimated to begin in mid July 2007. The company plans to delineate high-grade reserves within the El Picacho structure for commencement of milling operations scheduled for mid 2008.
The Dos Amigos Structure, which boasts grab samples with grades as high as 87.5 grams per tonne gold and 4,880 g/t silver (reported on 1-23-07), is also presently being evaluated. The structure has a known strike length of over three kilometers and has never been drilled. "Although our focus for the near term is on the El Picacho structure and reserve calculations," says CEO Chris Verrico, "the Dos Amigos structure is a very promising target that adds plenty of 'blue sky' to the potential of this property. We plan to put the first holes into the Dos Amigos structure this year."
The Company is compliant under National Instrument 43-101 for the Picacho Project. Jeffery Reeder, P.Geo. is the qualified person responsible for the exploration program, and for the supervision of the associated quality control / quality assurance programs. The quality control program consists of inserting standards, duplicates and blanks within the sample sequence.
About Picacho Gold Mine
The Picacho Gold Mine is a 3,236 hectare mining concession located within the Northern Sierra Madre Gold Belt, 120 kilometers south of the United States Border, in Sonora State, Republic of Mexico. The mine includes rolling stock and an extensive processing facility currently capable of 250 tonnes/per day of ore throughput. The previous owners have been exploiting an up to 5 meter wide vein structure for the past three years by driving a 5 meter by 5 meter ramp declining 8% extending over 1km in length. Production comes from several working faces averaging 4-6 meters in width. The structure that hosts the mineralization is 85% silica creating a tailings product that was being sold as a flux agent to the local smelters for US$35.00/tonne.
About Tara Gold Resources Corp.
Tara Gold Resources Corp. is a growth-oriented precious metals exploration and development company with existing production plants. It is management's objective to become a significant gold and precious metals producer by re-initiating and increasing production levels at La Currita, Lluvia de Oro and Picacho, and developing the San Miguel, La Millionaria, Pilar De Mocoribo and Las Minitas projects in Mexico. We continue to acquire other advanced-stage projects and/or producing mines in one of the most prolific precious metal districts in the world. For more information, please visit the Company's web site at: taragoldresources.com |
