MONTREAL, QUEBEC--(Marketwire - Dec. 12, 2007) - Golden Tag Resources Ltd. (TSX VENTURE:GOG) ("Golden Tag") and ECU Silver Mining Inc. (TSX:ECU) ("ECU") are pleased to report the results of an independent NI 43-101 compliant resource evaluation on the San Diego Project, Durango State, Mexico. Preliminary drilling completed in 2006-07 from 17 diamond drill holes along with 192 surface and underground samples have to date confirmed:
- INDICATED RESOURCES OF 370,852 TONNES GRADING 245 Ag g/t, 1.80 % Pb, 1.33 % Zn and, 0.339 Au g/t, and
- INFERRED RESOURCES OF 4,976,461 TONNES GRADING 167 Ag g/t, 1.25 % Pb, 1.26 % Zn and 0.163 Au g/t,
The Resource Estimate was completed by Kateri Marchand, P.Geo, Exploration Manager on the San Diego Project, and independently audited and verified by William J. Lewis, P.Geo, MICON International Ltd., qualified persons as defined under NI 43-101 guidelines.
The resources represent:
- INDICATED RESOURCE OF 3,979,526 OUNCES OF SILVER EQUIVALENT, and
- INFERRED RESOURCE OF 38,403,639 OUNCES OF SILVER EQUIVALENT
Silver equivalent ounces are calculated from lead and zinc using conversion factors of 26.60 g/t Ag per 1% Pb and 31.21 g/t Ag per 1% Zn (see Table 1). No credit was given for contained gold. Conversion factors took into account processing metal recovery factors as well as smelter returns from sales of concentrates to Industrias Penoles of ECU's production from its operations at Velardena. The recovery factors were of 76 % for silver, 75 % for lead and 44 % for Zn. Commodity prices of US$11.60/oz for silver, US$0.60/lb for lead and US$1.20/lb for zinc were used. These commodity price estimates were derived in consideration of historical averages and consensus estimates from a grouping of research mining analysts.
These results represent a 225 % increase over the last resource estimate for San Diego completed in October 2006 by Broad Oak and Associates. A previous resource estimate had also been completed in July 2005 by Roscoe Postle and Associates.
"These results more than meet our initial objectives for the San Diego Project and confirm the potential for a large deposit on this property", stated Mr. David Rigg, P.Geo. CEO Golden Tag Resources. "We remain confident that additional exploration should contribute to a further expansion of the Resources."
Of the 9 mineralized structures currently identified at San Diego, the La Cruz, Montanez HW and Montanez FW Zones contributed to more than half of the estimated Resources. The remaining resources are associated with the 6 narrow high grade veins of La Rata, El Jal, Cantarranas, Canta-Splay, SD Vein 1 and 2 (see Table 2). In the case of the La Cruz and Montanez Zones, the recent drill program showed that these historically mined high grade veins are related to broader and lower grade zones of mineralization at depth in a skarn-type environment. The estimated Resources extend from surface down to vertical depths of 200 to 400 meters below surface. The oxidized mineralization is mostly encountered near surface and accounts for 50% of the Indicated resources whereas it represents only 7 % of the Inferred resources (see Table 1).
Follow-up Surface Drill Program
A follow-up surface drilling program of 7,500 metres is currently in progress to further evaluate the extensions of the high-grade veins system and skarn-hosted, broad zones of mineralization encountered along the limestone/intrusive contact and in the vicinity of major fault zones. The program is focused on the expansion of the current Resources and improvement in the quality of the Resource.
In particular, drilling will focus upon:
- Depth extension of broad zones of polymetallic mineralization (Ag, Pb, Zn, Au) as sulphide rich stringer and breccia zones developed in skarn environment and/or in association with deep boundary faults identified along both the western and eastern contacts of the central diorite intrusion;
- The extension of the principal veins (Cantarranas, El Jal and Rata) as well as of secondary veins (Canta-Splay and SD Veins) both along strike and at depth across the property. These veins remain open in all directions;
"Proving new resources is the main objective of the current drilling program and we believe there is potential to confirm mineralization on all known veins along strike and at depth stated Kateri Marchand. "The discovery of additional broader zones of skarn mineralization, offering bulk tonnage potential similar to the ones actually identified on the La Cruz and Montanez Zones also represent an important part of the actual program."
The follow-up drill program was initiated on October 1st and six drill holes totalling 3,000 metres have been completed to date. Due to unusually high volumes at the ALS Chemex laboratory, new assay results from the current drilling are not expected until January and will be reported when received.
Golden Tag is earning a 50% interest in the San Diego property from ECU by incurring expenditures for a total of $US1.5 million over a 3 year period. As of this date, Golden Tag has incurred expenses totaling $US1.46 million.
Golden Tag and ECU Silver initiated the first program of diamond drilling ever undertaken on the property in September 2006. A total of 17 wide-spaced holes for 6,590 metres of NQ drilling have been completed to April, 2007 (See press release: April 17, 2007).
Resource Methodology
Indicated and Inferred Resources were estimated using a polygonal method on longitudinal sections for each of the nine veins and/or zones. The geological continuity of zones was determined on cross sections based on stratigraphy, mineralization and structure using diamond drill holes and surface and underground sampling information. This interpretation was confirmed and validated in plan view. Individual polygons were drafted on long sections to mid-point distance from diamond drill hole pierce points and sample locations. The area of these block was measured on long sections (oriented vertically but parallel to strike of the vein) using AutoCad. . All drill holes intercepts were calculated at a 1 metre minimum horizontal width for narrow veins and at 2.70 metres minimum horizontal width for the bulk mining areas with a value of zero for internal dilution in both cases.
The undiluted resource was estimated using a cut-off factor of 160 g/t Ag + Ag Equivalent for the narrow, high grade veins, whereas a cut-off factor of 80 g/t Ag + Ag Equivalent was applied to the bulk tonnage zones defined on the La Cruz and Montanez Zones at depth. Capping of high silver values was set at 1,050 g/t Ag for the La Cruz and La Rata Veins and to 1,395 g/t Ag for the other veins which corresponded to the 95th percentile of all assay results for these veins.
The content of this news release was reviewed by Kateri. Marchand, the qualified person in charge of the San Diego Project and has also received approval from William .J. Lewis P.Geo of MICON International Ltd.
"Readers are cautioned that until a complete pre-feasibility study is completed, there are no assurances that these resources will be economically viable."
ECU Silver Mining Inc. . is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The area includes five historical mines - Santa Juana, Terneras, San Mateo, San Juanes, and the San Diego mine. ECU is defining the "Mineralized Corridor" at Santa Juana and also further defining several higher grade narrow veins within the area. ECU's mission is to become a pre-eminent silver producer through the development of existing, and additional potential resources at Velardena.
Golden Tag Resources Ltd. is a junior exploration company actively exploring for high grade gold and silver deposits at the San Diego silver project in Durango State, Mexico; the Aquilon Main and Aquilon Extension gold projects in James Bay, Quebec; and the McCuaig gold project in Red Lake, Ontario.
Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.
TABLE 1:
SUMMARY OF INDICATED AND INFERRED RESOURCES AND SILVER EQUIVALENT GRADES
AND METAL CONTENT, SAN DIEGO PROJECT, MEXICO
----------------------------------------------------------------------
INDICATE Tonnes Au Ag Pb Zn
g/t g/t % %
----------------------------------------------------------------------
Oxide 180,080 0.51 255 1.38 1.30
----------------------------------------------------------------------
Sulphide 190,772 0.17 235 2.20 1.35
----------------------------------------------------------------------
Total 370,852 0.339 245 1.80 1.33
----------------------------------------------------------------------
----------------------------------------------------------------------
INDICATED Au Ag Pb Zn Ag+Ag Eq.
oz. oz lbs lbs oz.
----------------------------------------------------------------------
Oxide 2,972 1,474,194 5,474,828 5,148,797 1,920,903
----------------------------------------------------------------------
Sulphide 1,066 1,441,372 9,237,569 5,688,939 2,058,623
----------------------------------------------------------------------
Total 4,038 2,915,566 14,712,398 10,837,736 3,979,526
----------------------------------------------------------------------
----------------------------------------------------------------------
INFERRED Tonnes Au Ag Pb Zn
g/t g/t % %
----------------------------------------------------------------------
Oxide 322,019 0.34 303 1.11 0.99
----------------------------------------------------------------------
Sulphide 4,654,442 0.15 158 1.26 1.28
----------------------------------------------------------------------
Total 4,976,461 0.163 167 1.25 1.26
----------------------------------------------------------------------
----------------------------------------------------------------------
INFERRED Au Ag Pb Zn Ag+Ag Eq.
oz. oz lbs lbs oz.
----------------------------------------------------------------------
Oxide 3,468 3,140,671 7,894,951 7,023,713 3,766,592
----------------------------------------------------------------------
Sulphide 22,602 23,652,138 129,544,582 130,947,112 34,637,048
----------------------------------------------------------------------
Total 26,071 26,792,809 137,439,533 137,970,825 38,403,639
----------------------------------------------------------------------
----------------------------------------------------
Conversion
factors Au 1 Ag 1 Pb 1% Zn 1%
----------------------------------------------------
Ag g/t Equiv. 0 1.0 26.60 31.21
----------------------------------------------------
TABLE 2: BREAKDOWN OF RESOURCE ESTIMATE PER ZONES
SAN DIEGO JV PROJECT - RESOURCE ESTIMATE
Golden Tag Res. Inc. & ECU Silver Mining Inc.
OXIDE AND SULPHIDE
-----------------------------------------------------------------
1 La Cruz Tonnes Au Ag Pb Zn Ag+Ag Eq.
metric (g/t) (g/t) (%) (%) (Oz)
-----------------------------------------------------------------
Indicated 201,473 0.433 235 2.12 1.52 2,196,606
-----------------------------------------------------------------
Inferred 956,830 0.256 143 1.56 1.50 7,105,396
-----------------------------------------------------------------
2 Montanez HW
-----------------------------------------------------------------
Indicated 71,567 0.150 259 1.12 1.21 751,324
-----------------------------------------------------------------
Inferred 1,440,530 0.218 90 1.01 1.01 6,866,022
-----------------------------------------------------------------
3 Montanez FW
-----------------------------------------------------------------
Indicated 0 0
-----------------------------------------------------------------
Inferred 1,043,328 0.019 101 0.74 0.89 4,971,271
-----------------------------------------------------------------
4 Rata
-----------------------------------------------------------------
Indicated 44,587 0.307 255 2.16 1.12 498,790
-----------------------------------------------------------------
Inferred 130,480 0.241 280 1.31 0.57 1,396,732
-----------------------------------------------------------------
5 El Jal
-----------------------------------------------------------------
Indicated 16,188 0.266 316 0.95 0.41 184,439
-----------------------------------------------------------------
Inferred 430,991 0.179 300 1.83 2.48 5,911,943
-----------------------------------------------------------------
6 Cantarranas
-----------------------------------------------------------------
Indicated 37,036 0.263 223 1.29 1.12 348,367
-----------------------------------------------------------------
Inferred 419,169 0.123 253 1.87 1.21 4,590,832
-----------------------------------------------------------------
7 Canta Splay
-----------------------------------------------------------------
Indicated 0 0
-----------------------------------------------------------------
Inferred 204,441 0.094 314 0.70 1.11 2,415,644
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8 SD Vein (1)
-----------------------------------------------------------------
Indicated 0 0
-----------------------------------------------------------------
Inferred 160,818 0.066 292 2.84 2.03 2,226,883
-----------------------------------------------------------------
9 SD Vein (2)
-----------------------------------------------------------------
Indicated 0 0
-----------------------------------------------------------------
Inferred 189,875 0.222 415 0.94 1.24 2,918,915
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TOTAL Tonnes Au Ag Pb Zn Ag+Ag Eq.
-----------------------------------------------------------------
(g/t) (g/t) (%) (%) (Oz)
-----------------------------------------------------------------
Indicated 370,852 0.339 245 1.80 1.33 3,979,526
-----------------------------------------------------------------
Inferred 4,976,461 0.163 167 1.25 1.26 38,403,639
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