Toronto, Canada (August 8, 2013) - Mammoth Resources Corp. (TSX-V: MTH) is pleased to report assay results for its most recent and its sixth exploration campaign on the company's Tenoriba Property, located in the prolific Sierra Madre precious metal belt in south western Chihuahua state, Mexico (refer to the company's web site www.mammothresources.ca, for a detailed location map).
Surface rock samples taken during this campaign in which company geologists continued to map and sample various areas at Tenoriba continue to return encouraging highly anomalous channel samples and the occasional grab sample which in many instances assay in excess of 10 grams per tonne (gpt) gold equivalent (taking into account a silver : gold ratio of 50:1), including the following highlight sample results. (Note: The Company cautions that grab samples are selective by nature and are not necessarily representative of the grade of the mineralized zone being sampled.)
Cerro Colorado Area:
- 10.85 gpt gold equivalent with 4.03 gpt gold and 341.0 gpt silver over a 1.5 metre chip sample;
- 10.38 gpt gold equivalent with 0.06 gpt gold and 516.0 gpt silver over a 1.0 metre chip sample;
- 6.60 gpt gold equivalent with 5.17 gpt gold and 71.3 gpt silver over a 1.2 metre chip l sample;
Mina La Quemada:
- 13.56 gpt gold equivalent with 4.24 gpt gold and 466.0 gpt silver in a grab sample;
- 12.27 gpt gold equivalent with 6.39 gpt gold and 294.0 gpt silver over a 1.0 metre chip sample;
- 6.38 gpt gold equivalent with 5.42 gpt gold and 48.1 gpt silver over a 1.0 metre chip sample;
Mammoth President and CEO, Thomas Atkins, commented on the results from this sixth exploration campaign stating: "Of 112 samples collected and assayed in this campaign from Los Carneritos to the east and almost 5 kilometres west at Cerro Colorado, 54 assayed above 0.3 grams per tonne gold equivalent with a number of intersections above 10 grams per tonne gold equivalent. The relationship between hydrothermal alteration clay minerals such as Dickite and anomalous precious metal mineralization is indisputable and we're now beginning to gain some sense of the structural features on the property which we also believe to be controlling mineralization at Tenoriba. Company field staff are? now in the field laying-out a grid for potential PIMA (clay) analysis to better map trends in the alteration clays and/or to facilitate a geophysical survey later this year to assist in better identifying drill targets. We are also awaiting results from bottle roll type tests of core samples to further confirm the extent to which gold in these samples is amenable to heap leaching. The company looks forward to reporting on results from these activities in the coming weeks."
Los Carneritos Area:
The geology verification work during this period has confirmed that the geology at Carneritos consists of altered (silica, argillic altered rocks with dickite) volcanic breccias and epiclastic units inter-bedded with strongly to moderately argillic altered felsic volcanic tuff.The stratigraphy is affected by near perpendicular sets of northwest and northeast striking, normal faults which appear to rotate and move around the stratigraphy. The best alteration (silica, vuggy silica with dickite) and associated gold and silver mineralization are found at the junction of these fault systems hosted by the volcanic breccias and epiclastic units (refer to Figure 2 - Carenitos Sample and Structural Interpretation Map, Tenoriba Project, Mexico). Sampling continues to return highly anomalous assay values. Of the 35 samples collected in the area in this campaign 74 percent returned values greater than 0.3 gpt gold equivalent.
Of particular interest in this campaign's work were samples 330470 and 330579 (0.659 gpt gold equivalent and 0.421 gpt gold equivalent, respectively), taken in the moderately to strongly argillized felsic volcanic located at the base of previously sampled gold bearing, highly silicified volcanic breccia (refer to Table 2 - Samples Grading Above 0.3 gpt Gold Equivalent, Tenoriba Project, Mexico, Sixth Exploration Campaign). These samples, although not of very high grade, none-the-less show the presence of gold and silver, possibly indicating that the hydrothermal event that altered this felsic tuff is mineralized and thereby having implications for these highly altered tuffs to host at depth a vuggy silica body below the chaotic volcanic breccia as part of a sequence of hydrothermal breccias-epiclastics and layered tuffs.
Cero Colorado Area:
Mapping west of Cerro Colorado identified a granodioritic intrusive in contact with younger Tertiary volcanic units. Locally the contact between these units is brecciated, pyritized and weakly silicified. Four hand dug trenches (total 21 linear metres) were excavated over a small hill side (maximum area 50 x 50 metres) that exhibit vuggy and strong silica altered angular floats and sub-crops. Two of the trenches reached the altered silicified bedrock. A third trench also reached bedrock but does not exhibit the strong silica alteration. The best results included a 1.5 metre chip sample number 330558 grading 4.03 gpt gold and 341 gpt silver, plus a grab sample number 330554 grading 100.0 gpt silver.
Nine samples were also collected on surface and within the underground workings at the small Emilio mine working west of the summit of Cerro Colorado. Of these nine samples a few returned attractively anomalous values, the best being a 1.0 metre sample from surface, sample number 330509 grading 0.5 gpt gold and 15.8 gpt silver. The best result from within the workings graded 0.33 gpt gold and 3.5 gpt silver over 1.2 metres. The small Emilio mine is hosted by Granodiorite and located near the contact zone with the upper volcanic.
Mina La Quemada:
One other area sampled in this campaign was the Quemada polymetalic (gold, silver, zinc, lead and copper), ephithermal vein system which has returned highly anomalous results (refer to Table 1) from two small mine workings. These are located south of the Tenoriba River approximately two kilometres south of Los Carneritos area. These less than 1.5 metre wide veins are northeast to northwest trending, generally steeply to moderately dipping and are hosted by fresh to weakly altered (silica & argillic alteration) granodiorite. These veins represent a different style of mineralization than the other targets identified on the property to date and are the first samples with such high polymetallic values encountered to date on the property.
|Sample Number||Sample Method||Width||Gold||Silver||Copper||Lead||Zinc|
Refer to Figure 1 - Sample Location Map, Tenoriba Project, Mexico, Sixth Exploration Campaign, and Table 2 - Samples Grading Above 0.3 gpt Gold Equivalent, Tenoriba Project, Mexico, Sixth Exploration Campaign for sample location and assay results.
BCSC Review of Corporate Presentation:
As a result of a review by the British Colombia Securities Commission ("BCSC"), the company has been asked to clarify certain disclosure in its corporate presentation posted on the company web site and which has since been removed and an edited version of the presentation re-posted. Specifically, the BCSC has requested that wherein the company made reference on a slide in the presentation to the potential valuation increase that could arise in the company's share price, relative to the valuation of two TSX listed companies with projects in Mexico with NI 43-101 resources, if the company's Tenoriba project were to host a quantity of mineral resources. The BCSC advised the company that NI 43-101 restricts disclosure of quantities and grades of a deposit that is not a mineral resource or reserve, and only allows disclosure of ranges of quantity and grade for a potential exploration target if there is a valid basis and if the disclosure includes prominent mandatory cautionary language. The company's disclosure in its June 2013 Corporate Presentation did not comply with these requirements and the company retracts all prior disclosure of hypothetical quantities and gold grades and would like to confirm that the company has no current or historical resource estimates of the size and grade ranges at Tenoriba. In the event that the company receives an initial material mineral resource estimate, it will promptly disclose such results and file supporting technical information.
In the same corporate presentation drill intersections noted do not represent true thickness, but rather core length intersections. True thickness is not known at this time as the company does not have sufficient confidence in the angle of the mineralized structures intersected by this drilling relative to the angle of the holes intersecting such mineralization. It is possible that true thickness could be less than the reported core-length intervals.
In the cautionary language at the beginning of this Corporate Presentation reference was erroneously made to a September 2011 technical report that supports information in the Corporate Presentation. There is no such technical report and the erroneous language has been corrected.
About Mammoth Resources:
Mammoth Resources (TSX-V: MTH) is a mineral exploration company focused on acquiring and defining precious metal resources in Mexico and other attractive mining friendly jurisdictions in the Americas. The Company has an option to acquire 100% in the Tenoriba Property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico. The company continues to seek other option agreements in the Americas on other properties it deems to host above average potential for economic concentrations of precious metals mineralization.
Qualified Person / Quality Controls:
Richard Simpson, P.Geo., Vice-President Exploration for Mammoth Resources Corp. is Mammoth's Qualified Person, according to National Instrument 43-101, for the Tenoriba property and is responsible for and has reviewed any technical data mentioned in this news release, including the BCSC edits. Samples referenced in this press release were prepared and analyzed by ALS CHEMEX in their facilities in Mexico and Canada, respectively or IPL Inspectorate in their facilities in Mexico and Vancouver, respectively. Samples generally consisted of 1-3 kilograms of material. Gold analyses were performed by 30 gram fire assay with an Atomic Absorption finish. Silver, copper, lead and zinc were analyzed as part of a multi-element ICP package using an aqua regia digestion. Over limit samples with greater than one percent copper, lead and zinc were re-analyzed using ore grade detection limits.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the company's website at www.mammothresources.ca.
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Forward Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
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Figure 1 - Sample Location Map, Tenoriba Project, Mexico, Sixth Exploration Campaign
Figure 2 - Carenitos Sample and Structural Interpretation Map, Tenoriba Project, Mexico