Revelo Resources Completes Soil Geochemical Survey at Its Loro Gold-Silver JV Project and Plans Initial Drill Test
The ~4,800-hectare Loro property is being explored for high-grade, gold-silver "bonanza"-style, low-sulphidation epithermal quartz veins, and is located along trend from one of the most important precious metals mining districts in Chile. Geological mapping has been completed, and results from a large soil/colluvium geochemical sampling grid define a series of geochemically anomalous zones and trends. A combination of results from geological mapping, geophysical surveying and geochemical grids has led to the decision with Hochschild to initiate a drilling program of at least 1,500m on the most prospective areas as soon as possible, and before the end of April.
Key observations to date include:
Soil/colluvium sampling results to date indicate a clear correlation between rhyo-dacite domes, key magnetic features, and major arsenic & antimony anomalies. Known mineralised quartz veins encountered to date also correlate well. All anomalous features are developed along a N-S trending corridor about 9 Km long.
Three rhyo-dacite dome complexes are arranged in en-echelon fashion and have been subdivided into North, Central and Southern Zones. Most anomalous features to date are focused on the Central Zone.
Arsenic (from zero to 295 ppm) and antimony (from zero to 26 ppm) are the most important pathfinder elements for the gold-silver mineralized quartz veins sought. Two sub-parallel anomalies of arsenic and antimony in the Central Zone extend over 1 to 2 kilometers of strike, with possible extensions over a further 4 to 5 kilometers. The western anomalous zone coincides with sub-cropping veins, whilst the eastern anomalous zone is obscured by thick colluvium.
Mercury (0 — 1.08 ppm), copper (0 — 233 ppm), manganese (0 — 1,690 ppm) and sporadic gold and silver anomalies from the soil/colluvium survey also correlate well.
Quartz veins encountered in sub-crop and limited trenching completed to date (results pending) in the Central Zone exhibit classical low-sulphidation epithermal textures, with multiple silicification events. Quartz veins are typically up to 0.80 cm wide, trend approximately north-south (N15W to N15E) and have easterly dips (sub-vertical to 60°E).
Previous sampling results reported by Revelo from sub-cropping quartz veins have shown values from zero to 2.34g/t Au and zero to 956g/t Ag. Arsenic and antimony values in rock of1,000ppm were also reported by Revelo.
Trenching is unlikely to be effective on most of the anomalous trends defined due to the thickness of colluvial and caliche cover.
To date, the following exploration work has been completed:
Approximately 2,800 soil/colluvial samples have been collected on a detailed grid with lines spaced 250m apart covering an area of approximately 9 Km N-S x 2 to 3 Km E-W. All multi-element geochemical analyses have been received from the laboratory. The survey has been extended by approximately 200 samples to the south to cover a southern geophysical anomaly (results pending).
Approximately 470m of short (~20m — 30m each) trenches over sub cropping quartz veins on the western side of the central rhyo-dacitic dome complex, which partially outcrops, and which is reflected in the magnetics data, have been completed to date. Assay results are pending. Some trenches did not reach bedrock due to thick colluvial cover, and other important soil/colluvium geochemical anomalies are unlikely to be amenable to trenching due to the thickness of colluvial and caliche cover.
As previously reported, a detailed ground magnetics survey of the property totaling 965-line km with a 50m line spacing was completed in December 2017 (see news release dated December 14, 2017). All results have been processed, including 3-D modelling of the data.
An initial drill test of key areas of at least 1,500m and up to 3,000m, including sub-cropping veins, based on geology together with geochemical and geophysical anomalies, is being planned with Hochschild and will start before the end of April.
For information relating to previous technical advances at Loro please refer to the news releases on Revelo's website dated April 14, 2016; November 15, 2016; July 6, 2017; October 5, 2017 and December 14, 2017.
Loro is located along the highly productive Paleocene (or Central) Mineral Belt in northern Chile that contains several important gold, silver and copper mines and projects. The project is located along trend and just 25 km due south of the multi-million-ounce gold-silver district of El Peñon, owned and operated by Yamana Gold. The project also lies just a few kilometers east of Revelo's important Las Pampas project, also prospective for low-sulphidation, epithermal precious metals veins. The 4,800-hectare Loro project area is located at relatively low altitudes (1,800m to 2,000m), has subdued topography, and is easily accessed, being located within a short driving distance from the Pan-American Highway along a well-maintained dirt road, some 2.0 hours' drive from Antofagasta and 2.5 hours from Taltal.
The Loro project is currently subject to an option, sale and royalty agreement with a subsidiary of Hochschild. Under the agreement, Revelo will operate Phases 1 and 2 of the exploration program (to end Year 3). Hochschild can earn a 100% interest in the Loro project over a maximum of five (5) years in exchange for a series of in-ground investments and/or drilling commitments totalling US$13 million and/or 30,000 metres, and a series of cash payments to Revelo totalling US$5.3 million. Further payments totalling US$15 million are due once the option has been exercised by Hochschild. Revelo will be the beneficiary of a 1% NSR royalty on any future production from the property. (See Company's News Releases dated June 6, 2017and September 05, 2017). For further details of the Loro Project please refer to the Loro Project page on Revelo's website (www.reveloresources.com).
Dr. Demetrius Pohl, Ph.D., Certified Professional Geoscientist (CPG), an independent consultant, is the Company's Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosures for Mineral Projects of the Canadian Securities Administrators and has approved the written disclosure of the technical information contained in this news release.
Revelo has interests in an outstanding portfolio of projects prospective for copper, gold and silver located along proven mineral belts in one of the world's top mining jurisdictions — Chile. The Company has a combination of wholly-owned projects (available for option, JV or sale), option agreements, royalty interests (non-producing to date), and equity interests in mining and exploration companies. Revelo's total exposure to mineral tenements in northern Chile, either wholly-owned or through royalty interests, is around 200,000 hectares.
Revelo is a Canadian company and is listed on the TSX Venture Exchange (TSXV: RVL). For more information, please visit Revelo's website at www.reveloresources.com.
ON BEHALF OF THE BOARD
Michael Winn, Chairman
Timothy J Beale | President & CEO
T: +1 604 687-5544 | email@example.com | www.reveloresources.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Revelo expects to occur, are 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", "indicate" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Revelo 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.
Figure 1: Loro Project - Schematic Summary of Results to Date Showing Arsenic Anomalies in Soils
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Figure 2: Loro Project - Schematic Summary of Results to Date Showing Antimony Anomalies in Soils
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Figure 3: Loro Project - Principal Lithologies
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Figure 4: Loro Project: Argali 2017 Ground Magnetic Survey RTP
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