Note: Corrected tables 1 & 2 reproduced here from press release on March 4th 2013. (1) Block Caving/Mechanized Bulk Mining Cut-Off Grade (CoG) of 52 g/t Ag.EQ = NSR $30/t. See NR Feb 26th 2013 or Technical Report for details. (2)(i) Ag.EQ: Silver Equivalent ounces based on 3-yr trailing average commodity prices of US$1455/oz.Au; US$28.10/oz.Ag;US$1.00/lb Pb and US$0.96/lb Zn applying estimated Mill and Smelter recoveries. (3) Bulk Zones includes the Fernandez Zone (Fringe & Endoskarn) and Trovador; (4) Totals may not add up correctly due to rounding.
Additional Mineral Potential:
SGS-Canada recognizes in addition to the above-mentioned Inferred and Indicated Resources that there are areas within recognized structures and depth extensions which will require additional drilling and can offer additional Mineral Potential of between:
20 to 50 million tonnes grading 100 to 150 g/t AgEQ
The Additional Mineral Potential includes those tonnes contained within the 23 outlined mineralized envelopes that fall under either one of those 2 categories:
-- Unclassified tonnes above applicable cut-offs;-- Classified resources that are below cut-offs;-- As well as the down-depth and strike-length extensions to the mineralized structures.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The potential quantity and grade reported as Mineral Potential, is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Conclusion of the 43-101 Independent Technical Report
SGS concludes: "The San Diego project and surrounding properties have a rich mining heritage with a history of producing world class mines. The location of the property within this camp means that it has access to major infrastructure and a qualified workforce. Recent drilling and 3D modeling has shown that the polymetallic deposits located on the property have a predictable geometry and potential for significant tonnage additions. The resources comprise 23 separate silver-rich zones, each of which contains additional exploration opportunities. This family of structures provides flexibility in the future mine-planning in terms of methods and sequencing. The potential for the future development of a long term underground mining operation at San Diego is considered very good, and it could represent a new "Center of Mineralization" within the Velardena mining camp."
SGS further stated: "San Diego is host to a variety of Silver-rich and Pb-Zn bearing zones variably associated with a Diorite Intrusion which lies in the center of the property. The property was previously known for narrow, high-grade Ag-Pb-Zn Veins from surface to 400-500m depth. New drilling has shown that below 500m, veins often widen and occur with massive sulphides replacing carbonate, and/or in zones of skarn and stockwork systems. Highlights from the 2011 and 2012 drill campaigns include:
-- Fernandez Zone: a very large skarn deposit with high tonnage and amenable to bulk mining methods. This zone remains open to West and down-plunge;-- Discovery of the West Contact Zone that could represent the shallow up- dip edge of a second Fernandez-style zone;-- Significant potential to expand resources in down-dip and up-dip extensions to the historically important Trovador Vein;-- Ten new vein and mantos zones: including Lorenzo, EWFZ, Rata-Sub, MS, Panda and the South Skarn zones;-- ... Excellent potential in all 23 zones for further growth in resources. This potential exists within the modeled geological solids and as lateral and depth extensions."
Qualified persons - Resource:
David Rigg, P.Geo and CEO of Golden Tag, Qualified Person (QP) in accordance with NI 43-101 has prepared this press release.
Cautionary Statement: 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. For a discussion of the risk factors that are inherent in the Mining Industry see our public filings at www.sedar.com.
Neither 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.
Golden Tag Resources
Marc A. Carrier, President and C.F.O.
(514) 426-8543 (FAX)