Santa Barbara drills 50 m @ 1.10 g/t gold, including 24 m @ 1.71 g/t gold and 98 metres @ 0.51 g/t gold at the Sancos Project, Peru
Vancouver, British Columbia CANADA, November 12, 2013 /FSC/ - Santa Barbara Resources Limited (SBL - TSX Venture), ("Santa Barbara" or the "Company"), is pleased to report results from 27 holes drilled on the Sancos Project in September and October 2013. The planned 5,000 metre (m) reverse circulation drill program was increased to 6,000 m by agreement with joint venture partner Rio Alto Mining Limited ("Rio Alto").
Drill holes have returned gold intercepts of 50 m @ 1.10 grams per tonne (g/t) gold, including 24 m @ 1.71 g/t gold at shallow depth, 98 metres @ 0.51 g/t gold near surface, 140 m @ 0.36 g/t gold from surface and 108 m @ 0.38 g/t gold from surface. Drill hole SARC 040 with the drill intercept of 50 m @ 1.10 g/t gold is located approximately 120 m north of and at similar altitudes to the area of highest grade trench results obtained from surface in prior work programs. The other drill holes, in conjunction with the results of the first drill campaign which included 154 m @ 0.45 g/t gold and 94 m @ 0.47 g/t gold from surface as well as seven other adjacent drill holes, form a coherent cluster of drill intercepts within the central breccia zone of Sancos Central in an area measuring 500 m by 160 m. The gold mineralization in this zone remains open at depth.
Nine out of twelve of the other drill holes intersected anomalous gold values throughout Sancos Central ranging from 14 m @ 0.19 g/t gold to 116 m @ 0.17 g/t gold. The 2 m @ 2.35 g/t gold intersection in SARC 033 may indicate the presence of a potential feeder structure at Sancos Northeast. The interpretation of these results is ongoing.
The most significant drill results are summarized in the table below. A map with the drill hole locations and complete drill results can be reviewed on the Company?s web page.
Christoph Lassl, CEO of the Company commented: "We are very pleased with the results received from our recent drill program at Sancos. The better drill intercepts located to the north of the previously outlined highest grade gold zone in trenches are found at similar elevation, suggesting the continuation of potentially flat-lying, lithilogically controlled gold mineralization. Defining the extent of a potential better grade gold zone will require a follow-up drill program. The central breccia complex of Sancos Central has returned contiguous drill holes with long, potentially economic gold intercepts from surface or near surface."
Sampling, Quality Control and Drill Intersection Grade Calculation
During the drill program, one sample was collected for each two metre drill advance. To guarantee accurate representation of the lithology in the sample, the entire sample recovered from the corresponding drill interval was riffle-split to a 3 kg to 5 kg sample, weighed on site, sealed and labeled immediately in preparation for shipment to the assay laboratory. The remaining drill cuttings are stored on site.
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Dill Hole Hole Length From To Mineralized Grade Oxide/
(m) (m) (m) Interval(m) (g/t) Sulphide
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SARC 025* 178 0 108 108 0.38 Oxide
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Including 98 108 10 1.09 Oxide
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And 108 178 70 0.10 Oxide
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SARC 026 250 0 140 140 0.36 Oxide
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And 140 186 46 0.18 Oxide
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SARC 027* 230 6 24 18 0.25 Oxide
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And 24 122 98 0.51 Oxide
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Including 44 60 16 0.89 Oxide
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And 122 230 108 0.16 Oxide
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SARC 028 230 40 48 8 0.49 Oxide
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SARC 033 250 156 158 2 2.35 Oxide
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SARC 035 216 66 94 28 0.48 Oxide
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SARC 036 250 90 120 30 0.30 Oxide
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And 150 170 20 0.28 Oxide
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SARC 037 200 62 92 30 0.46 Oxide
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And 122 128 6 0.75 Oxide
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And 150 170 20 0.50 Oxide
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SARC 039 200 28 78 50 0.40 Oxide
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SARC 040 250 48 98 50 1.11 Oxide
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Including 72 96 24 1.71 Oxide
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SARC 041 250 56 120 64 0.36 Oxide
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SARC 042 200 102 142 40 0.38 Oxide
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SARC 045 200 108 130 22 0.34 Oxide
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SARC 048 200 0 16 16 0.51 Oxide
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And 20 102 82 0.23 Oxide
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SARC 051 194 48 144 96 0.23 Oxide
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* Holes SARC 025 and SARC 027 end in mineralization
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Sancos RC Drilling - Drill Hole Specifications
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Hole Easting Northing Elevation Azimuth Dip Depth
WG S 84 WG S 84 (m) (m)
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SARC-025 615542 8335954 3756 30 -60 178
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SARC-026 615468 8335972 3764 135 -60 250
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SARC-027 615491 8336036 3798 180 -60 230
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SARC-028 615616 8335857 3719 315 -60 230
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SARC-029 615157 8335833 3605 30 -75 260
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SARC-030 615089 8335799 3564 30 -75 250
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SARC-031 615193 8335769 3591 30 -60 246
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SARC-032 615274 8335750 3566 30 -60 250
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SARC-033 615936 8336642 3794 300 -60 250
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SARC-034 615896 8336496 3720 300 -60 250
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SARC-035 615728 8336213 3733 210 -60 216
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SARC-036 615663 8336036 3755 30 -60 250
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SARC-037 615604 8335966 3753 30 -60 200
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SARC-038 615465 8335977 3764 315 -60 200
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SARC-039 615517 8335866 3700 315 -60 200
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SARC-040 615312 8335869 3661 0 -90 250
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SARC-041 615243 8335887 3662 0 -90 250
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SARC-042 615619 8336084 3776 0 -60 200
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SARC-043 615575 8336145 3809 220 -60 226
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SARC-044 615415 8336092 3818 0 -60 200
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SARC-045 615680 8336260 3735 220 -60 200
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SARC-046 615499 8336253 3833 180 -60 210
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SARC-047 615577 8335785 3658 315 -60 160
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SARC-048 615493 8335835 3666 315 -70 200
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SARC-049 615420 8336089 3813 190 -60 250
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SARC-050 615465 8335973 3758 225 -60 200
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SARC-051 615370 8335874 3654 270 -60 194
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The samples were prepared and fire assayed with an atomic adsorption finish
using a 50 gram assay charge. All samples were analyzed by a 36 element aqua regia ICP-OES method. The samples were also analyzed for trace mercury detection by cold vapour. All sample preparation and analytical procedures were conducted by CERTIMIN S.A., Lima, Peru.
CERTIMIN, S.A. quality control system complies with International Standards ISO 9001:2008 and ISO 17025:2006. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. As part of Santa Barbara's Quality Control and Quality Assurance program, certified reference materials, field duplicates and blank samples are inserted continuously into the sample stream.
The average grade of a drill interval is calculated by a weighted average of the contained sample results. Selective higher grade portions of the respective interval are reported within wider general mineralization. Drill intercepts presented above are drill intersection widths and may not represent true widths of mineralization, which cannot yet be determined. Gold assays have not been subject to a top cut.
The technical content of this news release has been reviewed by Stewart Wallis P.Geo., consultant to the Company, who is a Qualified Person as defined by National Instrument 43-101.
Option and Joint Venture Agreement
Under the terms of the Option and Joint Venture Agreement, Rio Alto has the option to acquire an initial 51% interest in the Sancos Project within a three year period by incurring an aggregate of US$4.5 million expenditures on the Sancos Project and may earn an additional 15% interest in the Sancos Project within the subsequent two year period by undertaking all necessary actions required to prepare the Sancos Project for a production decision. Rio Alto will also make certain cash payments to Santa Barbara. Once Rio Alto earns 66 % Santa Barbara may elect to participate proportionally in the costs of the development and construction of a mine on the Sancos Project and maintain its interest in the Sancos Joint Venture at 34%, or allow Rio Alto to arrange for project financing for mine construction, including Santa Barbara's proportional share, in which case Rio Alto will have acquired an additional 9% interest in the Sancos Project, leaving Santa Barbara with a 25% interest in the Sancos Project.
Further details of the Agreement can be found in the Company's News Release dated June 27, 2013.
Sancos Project
The Sancos Project is located in the mining-friendly Ayacucho Region of Peru. The property hosts a large high-sulphidation epithermal gold-silver mineralized system. The Sancos Project encompasses 8,200 hectares, with 2,000 hectares held directly by Santa Barbara. Santa Barbara has the option, subject to certain back-in rights, to acquire a 100% interest in the remaining 6,200 hectares of the Sancos project from Barrick Gold's Peruvian subsidiary (the "Barrick Option"). The terms of the Barrick Option, including Barrick's back-in right in certain circumstances, are described in the notes to the annual financial statements of Santa Barbara. During the term of the Rio Alto Agreement, Rio Alto will fund Santa Barbara to make cash payments due to Barrick pursuant to the Barrick Option. If Barrick exercises its back-in right after Rio Alto has earned an interest, Santa Barbara and Rio Alto will be diluted pro rata and the back-in purchase price, of three times each parties' expenditures on the Sancos Project, will be paid proportionally to their participation in the Project at the time of exercise of the Barrick back-in.
About the Company
Santa Barbara is a South American mineral explorer focusing on Peru and Chile. The Company has 25.3 million shares outstanding.
ON BEHALF OF THE BOARD
"Christoph Lassl"
_______________________________
Christoph Lassl, President and
Chief Executive Officer
Please visit the Company's web site: www.sbr-ltd.com . For further information, please contact Christoph Lassl, President and Chief Executive Officer. Telephone: 56-9-81490442 or email: christoph@sbr-ltd.com .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed "forward-looking" statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur and include, without limitation, statements regarding the Company's plans with respect to exploration activities and a statements about potential economic gold mineralization on the Sancos Project. Although Santa Barbara believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements, including the risk that Rio Alto will not proceed with the exercise of the option and the funding of exploration activities on the Sancos Project. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
To view the press release as a PDF file, please click on the following link:
http://www.usetdas.com/pr/santa11122013.pdf
Source: Santa Barbara Resources Limited (TSX V SBL)
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