Leagold Mining drills 29.2 metres of 18.5 g/t gold at Los Filos

The Leagold Mining Los Filos mining operations in Guerrero State, Mexico. Source: Leagold Mining Corp.

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The Leagold Mining Los Filos mining operations in Guerrero State, Mexico. Source: Leagold Mining Corp.

Leagold Mining Corp. [LMC-TSCV] reported drilling results at its recently acquired Los Filos Gold Mine, Guerrero State, Mexico, with highlights of 18.5 g/t over 29.2 metres and 12.4 g/t over 21.6 metres, including 17.6 g/t over 9.2 metres (all capped grades and true widths from the oxide zone of the Bermejal Underground deposit. These drill holes were part of an infill and geotechnical program completed in Q1 2017 and were not included in Leagold’s recently filed NI 43-101 Technical Report for the Los Filos Mine.

Neil Woodyer, CEO, stated, “The infill drilling results are exceptional and confirm the widths and grades in the widest and higher grade portion of the Bermejal Underground deposit. We are initiating a $7.7 million step-out and infill drilling program of 56,000 metres to add more resources to Bermejal Underground. Los Filos currently operates two open pit mines, Los Filos and Bermejal, and one underground mine at Los Filos. The Bermejal Underground project presents the opportunity to develop a second underground mine to both expand gold production and extend mine life. The results to date confirm the high quality and significant exploration upside potential of Bermejal Underground.”

Gold iron-oxide skarn mineralization is located along contacts between intrusive and carbonate host rocks and provides extensive opportunities at Los Filos for identification and delineation of additional resources. The mineralization in the Bermejal Underground deposit remains open in several directions.

The infill drilling program was comprised of seven holes, totaling 5,570 metres, designed to intersect the inferred resources for conversion to an indicated classification in a high-grade portion of the Bermejal Underground deposit. This high-grade zone of oxide mineralization is along a vertical contact with the Bermejal intrusive and contains the bulk of the mineral resources within the Bermejal Underground deposit (Refer to maps on company press release Figures 2 and 3). These resources are located below the intersection of a sill with the Bermejal intrusive (Figure 3).

A further six geotechnical holes (3,554 metres) were completed to investigate underground development and mining options as part of advancing the project. Two of the geotechnical holes intersected mineralization along the contacts of the sill and at the intrusive/carbonate contact. Drilling highlights in the Bermejal Underground Deposit included 8.0 g/t gold over 11.25 metres, 9.2 g/t (capped) over 7.27 metres, 9.3 g.t over 14.35 metres,13.0 g/t (capped) over 21.55 metres and 15.1 g/t over 8.63 metres. There were many other encouraging assays – refer to complete tables in company press release. Three of the holes were not drilled in the area of mineralization and assay results are pending for the final geotechnical hole.

Leagold is commencing a $7.7M drilling program in Q2 2017 of 56,000 metres, targeting step-out and infill drilling, to expand the known Bermejal Underground resource base and to increase resource classification in support of future feasibility level studies and capital investment decisions. Drill holes are planned to intersect oxide mineralized zones at the steeply dipping to vertical contact of the Bermejal intrusive with carbonate as well as the upper and lower contacts of the sill.

The program includes the use of reverse circulation (RC) drilling in the upper portions of holes followed by diamond drilling “tails” to the end of hole in order to provide more rapid completion of the program and to reduce drilling costs. The program will be completed in 2017.

Additional opportunities for drilling are evident on the west side and the southeast trend of the contact of the Bermejal Intrusive.

The drilling results are reported for the oxide zone located at the contact of intrusives with carbonate rocks. Mineralization is gold in iron oxides and is amenable to heap leaching (current recoveries for similar material is 80% from the existing heap leach operation).

The Bermejal deposit extends to at least 600 metres below the current Bermejal Open Pit and has been examined as an underground opportunity due to the high strip ratio that would be required for an open pit to mine the entire mineral resource. The Bermejal Underground deposit is entirely below and separate from the current Bermejal Open Pit Mineral Reserves.

Bermejal Underground measured and indicated resources consist of 4.74 million tonnes at 6.65 g/t gold containing 1.012 million ounces plus inferred resources of 4.17 million tonnes at 5.05 g/t gold containing 0.678 million ounces (Stantec, March 1, 2017).

Leagold acquired the Los Filos Gold Mine for US $350 million from Goldcorp Inc. [G-TSX; GG-NYSE].

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