Vancouver, Canada – October 19, 2011 – Greg Myers, CEO and President of Caza Gold Corp. (TSX-V: CZY, FSE: CZ6),is pleased to announce that recent drilling at the Balleza gold project on the Moris property in Chihuahua, Mexico intersected a broad zone of gold mineralization up to 140 meters (m) in true thickness.
Caza Gold has received the assay results from the remaining 8 drillholes of the Phase 1, 12 hole, 3,519 meter drilling program at Balleza. All 12 drillholes intersected gold mineralization including 137.8 m grading 0.64 grams per tonne (gpt) Au in drillhole 2011-08 which included 24 m grading 1.02 gpt Au.
The mineralized zone is hosted in tuffaceous andesitic volcanic rock and a rhyolitic flow/sill unit. Gold mineralization is associated with strong silica flooding and quartz stockwork veining. Drilling tested a 300 meter-long portion of the 1200 m long Balleza surface rock-chip geochemical anomaly.
Assay results for drillholes 2011-01 through 2011-04 were reported on October 4, 2011 and the results for the remaining 8 holes as follows:
|
| Drillhole |
From (m) |
To (m) |
Width (m) |
Au Avg. (gpt) |
|
| 2011-05 |
1.00 |
100.25 |
99.25 |
0.47 |
| including |
42.40 |
50.03 |
7.63 |
0.77 |
| including |
92.30 |
98.65 |
6.35 |
1.00 |
|
| 2011-06 |
0.35 |
99.60 |
99.25 |
0.70 |
| including |
6.00 |
13.00 |
7.00 |
0.81 |
| including |
42.00 |
52.00 |
10.00 |
0.80 |
| including |
68.00 |
99.60 |
31.60 |
1.18 |
|
| 2011-07 |
0.00 |
142.85 |
142.85 |
0.40 |
| including |
86.45 |
141.50 |
55.05 |
0.69 |
| including |
132.15 |
140.65 |
8.50 |
1.42 |
|
| 2011-08 |
22.00 |
159.80 |
137.80 |
0.64 |
| including |
26.00 |
34.00 |
8.00 |
1.37 |
| including |
114.00 |
138.00 |
24.00 |
1.02 |
|
| 2011-09 |
19.90 |
80.00 |
60.10 |
0.50 |
| including |
36.00 |
39.10 |
3.10 |
2.18 |
| and |
94.00 |
161.00 |
67.00 |
0.51 |
| including |
123.00 |
143.00 |
20.00 |
0.84 |
|
| 2011-10 |
20.00 |
52.00 |
32.00 |
0.81 |
| including |
30.00 |
48.00 |
18.00 |
1.13 |
|
| 2011-11 |
14.40 |
36.40 |
22.00 |
0.40 |
|
| 2011-12 |
17.00 |
39.00 |
22.00 |
0.42 |
|
Intersected widths are assumed to be the approximate true thickness of mineralization. Mineralized intervals are calculated as weighted averages and may include internal low grade below a nominal 0.1 gpt gold cutoff grade.
The drilling indicates a flat lying mineralized body approximately 100 m thick and 350 m wide. Surface rock-chip sampling suggests the mineralized body is possibly 1200 m long Drillholes 2011-4 through 2011-9 are a fan of holes collared from a common drillsite and all intersected gold mineralization from the surface. The mineralized body continues approximately 200m down the hillside to the west of the drillhole fan. Shallow gold potential remains untested in this area of surface rock-chip gold anomalies. Drillholes 2011-11 and 2011-12 were drilled to test for the eastern limit of the mineralized body and only intersected narrow, low-grade gold mineralization as expected.
Gold mineralization is associated with the hanging-wall of a prominent fault zone which separates the younger volcanic tuffs, flows, and sills from an older black shale unit. The gold mineralization occurs with iron oxide-pyrite-silica alteration and higher grades are associated with an increase of quartz stock-works and veins near the underlying fault zone. Drilling tested approximately 300 meters of strike length along the Balleza gold target, part of a 7 km long regional mineralized structure which hosts several high grade, narrow gold and silver veins and additional low grade, bulk mineable targets.
Caza will be expanding the exploration program to test higher grade gold and silver vein structures along the trend of the low grade bulk mineable targets and plans to drill both target types in early 2012.
Caza Gold has a quality control and quality assurance program in place for the Balleza Project. Core samples are collected under the supervision of Company personnel and transported to a secure storage area. Company geologists measure recovery, log the core by standard geologic methods, photograph the core in the boxes, and supervise the cutting of the core using diamond saws. One half of the core is sent for assay and the other half retained for further study and inspections. Coarse, blind, blanks and blind commercial standard gold reference materials for analysis control are inserted in the sample stream. Half-core samples in sealed bags are trucked to the primary laboratory. Blanks and standard reference material results are within acceptable ranges. All samples were prepared at the Inspectorate prep facility in Durango and analyzed at their Reno, Nevada analytical labs.
The Balleza gold project is part of Caza’s Moris Properties (16,209 hectares), located 10 km west of Aurico’s Ocampo Mine and about 230 km northwest of Chihuahua City in Chihuahua State, Mexico. Access is by paved and all-weather gravel roads. Infrastructure is good with state power lines crossing the properties and labor, supplies, and services available in the nearby towns of Moris, Ocampo and Cuauhtemoc.
Greg Myers, Ph.D. P. Geo is the Qualified Person who reviewed and approved the contents of this news release.
Caza Gold Corp. (TSX-V: CZY, FSE: CZ6), is an exploration company focused on the acquisition and exploration of strategic gold properties in Mexico, Nicaragua, and Latin America.
CAZA GOLD CORP.
Per:
/s/ Greg Myers
Greg Myers Ph.D. P. Geo.
President and CEO
For more information, please contact Greg Myers at Toll Free: 1-877-684-9700, tel: (604) 685-9750, fax: (604) 685-9744, email: gmyers@cazagold.com or visit our website, www.cazagold.com
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Certain statements contained herein constitute "forward-looking statements" within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward-looking statements" involve known and unknown risks and uncertainties, as discussed in the Company's filings with Canadian securities agencies. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable law. We seek safe harbour.