TORONTO, ONTARIO -- (Marketwire) -- 02/21/13 -- Antofagasta Gold Inc. ("Antofagasta" or the "Company") (TSX VENTURE: AN) is pleased to announce it has entered into an option agreement (the "Option Agreement") with a Chilean based mining company (the "Vendor") to acquire between 85% and 100% of various claim blocks collectively called Pampas El Penon Property (the "Property"). The Property consists of 70 mining claims totaling 19,300 hectares partially surrounding Yamana Gold's El Penon mine and is located approximately 130 km south-east of Antofagasta, Chile. The Property consists of seven separate blocks as close as 4 km from El Penon, including the land package immediately to the west of the Pampa Augusta Victoria discovery veins. Over 20 epithermal veins, with a cumulative strike length in excess of 10 km, have been identified on surface, some of which have been explored by trenching and/or reverse circulation drilling by previous owners.
The Property covers land in the same geological environment as the El Penon Mine (total of 7.5 million gold equivalent ounces in mineral reserves and resources as of December 31, 2012), hosting several identified north-south trending epithermal quartz veins with anomalous gold and silver at or near surface. The veins are typically 1 to over 6 metres wide with individual strike lengths of over 1.5 kilometres. The most prominent vein identified to date lies approximately 1000 metres west of Yamana's Pampa Augusta Victoria discovery vein system.
Historical results from trenching and drilling on these veins, as provided to the Company by the Vendor, have demonstrated anomalous values up to 1.2 gpt Au & 16.9 gpt Ag at or very near surface. Mineralized veins in this area, including those at Yamana's Pampa Augusta Victoria and El Penon deposits, are predominantly north-south trending and typically host gold & silver resources starting between 150-300 metres below surface. Anomalous gold and silver in veins overlying the resource is common and considered a positive indicator of economic mineralization. Historical work consisted primarily of mapping, surface sampling, trenching, and reverse circulation drilling.
William Randall, President & CEO of Antofagasta Gold, commented: "We are extremely satisfied with what we have achieved to date. Since September of 2012 Antofogasta Gold has signed the Capricornio option agreement, completed a $7.5 million private placement, commenced a diamond drilling program, and has now closed the Pampas El Penon option agreement. We expect to continue actively looking for opportunities to grow the company and create shareholder value while working the existing portfolio.
William Randall added "The Pampas El Penon Property complements our flagship Capricornio Property nicely. Both properties host known epithermal gold and silver bearing quartz veins in a well recognized and developed mining district. The Pampas El Penon land package increases our exposure to high grade gold districts increasing our chances of defining quality ounces. Antofagasta Gold now has two strategic land positions and is in a strong position to continue advancing its goal to be a leading explorer and developer of mineral properties in Chile."
A map of the Pampas El Penon property can be found here.
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