Management of Sierra Madre Developments Inc. ("Sierra Madre") (TSX
VENTURE:SMG) and Riverside Resources Ltd. ("Riverside") (TSX
VENTURE:RRI) are pleased to announce results of the recently
completed drill program at the El Capitan Target, Penoles Project,
Durango State, Mexico. A total of 2,220 meters of HQ core drilling
was completed in 18 drill holes.
The El Capitan Target is considered an advanced, bulk tonnage
oxide gold prospect. Previous widely spaced drilling at El Capitan
(3 holes completed by Aurcana in 2004 and 5 holes completed by
Riverside in 2008) intersected a west to north west striking, 30 to
70 meter wide zone of low grade, gold mineralization that is
intermittently exposed for approximately one kilometer along a
shallow dipping volcanic - sedimentary contact (the estimated dip
of the contact zone is approximately 30 degrees to the south).
Mineralized intervals reported by Aurcana and Riverside ranged from
40.50 meters averaging 0.215 g/t gold (CDDH 08-05) to 61.4 meters
averaging 0.813 g/t (PE04-01) and included narrower, higher grade
intervals ranging from 7.75 meters averaging 0.358 g/t to 9.80
meters averaging 1.067 g/t. The majority of the historic Aurcana
and Riverside drill holes were spaced at 100 to 200 meter intervals
and tested the central and western parts of the exposed mineralized
zone, which is now referred to as the "Main Zone". A single
historic hole (CDDH 08-03) located approximately 500 meters to the
east of the "Main Zone" intersected 26.20 meters averaging 0.275
g/t as well as narrower intervals of higher grade mineralization
suggesting potential for extensions to the south east (referred to
as the SE Extension).
The preliminary geological work by Riverside showed potential
for a bulk tonnage, low grade deposit however extensive in-fill
drilling was required to validate the conceptual model. As
announced October 12, 2011 preliminary metallurgical tests
completed by Inspectorate Exploration and Mining Services supports
that mineralization at El Capitan is amenable to low cost, heap
leach mining.
The objective of the 2011 drill program was to validate the
conceptual deposit model, increase the density of pierce points
within the Main Zone and test for potential strike extensions of
the Main Zone. The recently completed drilling program included 15
additional holes drilled from 9 separate stations within the area
referred to as the "Main Zone". Two drill holes, CDDH 11-04 and
CDDH 11-11, encountered poor ground conditions and were stopped
before reaching the target zone. Drill stations were spaced at 50
to 100 meters and most of the holes were drilled at an inclination
of 50 degrees along an azimuth of 30 degrees (parallel to the
Riverside and Aurcana holes). Two of the 2011 drill stations were
historic drill sites and three of the 2011 drill holes were
vertical holes. The attached plan view map shows the location of
all of the 2011 and historic holes and the following tables list
all 2011 and historic results for the Main Zone.
Main Zone Drill Results
Results of the drilling program were encouraging in that the
grade and thickness of mineralization encountered in the "Main
Zone" showed considerable improvement over preliminary drilling
results reported by Riverside in 2008. The strike length of the
"Main Zone" was extended and several of the drill holes encountered
mineralized intervals with potentially economic grades in excess of
70 meters in thickness including CDDH 11-07 which returned 108.35
meters averaging 0.410 g/t and CDDH 11-17 which returned 88.40
meters averaging 0.816 g/t (including 33.50 meters averaging 1.687
g/t). The widths quoted are drilled widths and are believed to
represent approximate true widths. Actual widths have not yet been
calculated.
Sierra Madre CEO Carl von Einsiedel, P.Geo. comments that: A
total of 22 drill holes (fifteen drill holes in 2011 and seven
historic drill holes) have now been completed within the Main Zone.
The zone has been traced by drilling over a strike length of
approximately 700 meters and appears to be open for expansion along
strike to the west and north west of the area that has been tested
by drilling. Only a limited amount of drilling has been completed
to test the down dip extent of the known mineralized zone. In the
opinion of the Company, based on the assay results from the 2011
drill holes and the reported results from the 2004 and 2008 drill
holes the El Capitan target warrants additional drill testing.
Table 1: Main Zone 2011 Drill Hole Summary
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Drill hole Inclination From (m) To (m) Interval (m) Au g/t
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CDDH-11-01 -50 90.35 122.50 32.15 0.478
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includes 105.20 108.90 3.70 1.036
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CDDH-11-02 -50 45.45 96.20 50.75 0.509
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includes 62.60 77.00 14.40 1.084
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includes 71.00 75.60 4.60 2.411
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CDDH-11-03 -90 35.35 126.00 90.65 0.603
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includes 78.75 116.25 37.50 1.030
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includes 91.50 97.90 6.40 1.902
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CDDH-11-04 -50 Abandoned, Poor Ground Conditions
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CDDH-11-05 .75 2.30 68.80 66.50 0.203
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includes 14.80 31.75 16.95 0.448
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CDDH-11-06 -50 28.35 79.85 51.50 0.141
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CDDH-11-06 110.75 155.50 44.75 0.182
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CDDH-11-07 -50 57.20 165.55 108.35 0.410
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includes 57.20 71.15 13.95 0.619
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includes 90.65 103.70 13.05 0.788
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CDDH-11-11 -50 Abandoned, Poor Ground Conditions
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CDDH-11-12 -50 13.28 74.2 60.92 0.154
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CDDH-11-12 170.15 194.4 24.25 0.236
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CDDH-11-13 -60 63.15 92.05 28.90 0.469
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includes 64.85 85.70 20.85 0.502
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includes 64.85 68.10 3.25 0.918
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CDDH-11-14 -90 77.70 114.80 37.10 0.694
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includes 90.35 103.00 12.65 1.389
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includes 94.55 99.60 5.05 2.088
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CDDH-11-15 -50 46.55 74.15 27.60 0.202
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CDDH-11-15 91.80 131.15 39.35 0.217
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CDDH-11-16 -60 42.70 104.00 61.30 0.680
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includes 61.70 76.10 14.40 1.521
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includes 69.60 74.00 4.40 2.429
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CDDH-11-17 -90 43.40 131.80 88.40 0.816
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includes 80.50 114.00 33.50 1.687
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includes 95.95 104.00 8.05 2.405
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includes 99.85 104.00 4.15 3.098
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CDDH-11-18 -60 64.05 97.90 33.85 1.399
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includes 82.35 97.90 15.55 2.096
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Note: Gold grade reported by Inspectorate in ppb (parts per
billion). The grade in g/t was calculated by dividing the reported
grade in ppb by a factor of 1,000. Widths quoted are drilled width.
Calculation of true widths are pending.
Table 2: Main Zone Historic 2008 Drill Hole Summary as reported on Riverside
Resources website
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Drill hole Inclination From (m) To (m) Interval (m) Au g/t
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CDDH-08-01 -60 33.75 35.20 1.45 2.510
----------------------------------------------------------------------------
CDDH-08-01 47.00 76.18 29.18 0.530
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includes 61.90 71.70 9.80 1.067
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CDDH-08-02 -50 89.94 122.25 32.31 0.659
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includes 102.25 105.30 3.05 1.844
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includes 102.25 111.80 9.55 1.114
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----------------------------------------------------------------------------
CDDH-08-04 -55 182.65 189.50 6.85 0.265
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includes 184.10 188.30 4.20 0.343
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CDDH-08-05 -45 71.13 72.65 1.52 0.992
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176.50 217.00 40.50 0.215
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includes 180.25 188.00 7.75 0.358
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Note: Gold grade was originally reported by Riverside in ppb
(parts per billion). The grade in g/t was calculated by dividing
the reported grade in ppb by a factor of 1000. Widths quoted are
drilled width. Calculation of true widths are pending.
Table 3: Main Zone Historic 2004 Drill Hole Summary
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Drill hole Inclination From (m) To (m) Interval (m) Au g/t
----------------------------------------------------------------------------
PE04-01 -55 31.85 93.27 61.42 0.813
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includes 76.20 80.77 4.57 6.400
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PE04-02 -55 125.0 190.50 65.5 0.172
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PE04-04 -75 78.0 147.52 69.52 0.309
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Note: Gold grade was originally reported by Riverside in ppb
(parts per billion). The grade in g/t was calculated by dividing
the reported grade in ppb by a factor of 1000. Widths quoted are
drilled width. Calculation of true widths are pending.
SE Extension Drill Results
In addition to the drill testing within the Main Zone a total of
four drill holes (three 2011 drill holes CDDH-11-08, 11-09, 11-10,
and one historic drill hole CDDH-08-03) have been completed to test
strike extension of the mineralized zone to the southeast (referred
to as the "South East Extension"). Although results are encouraging
the gold grades and thicknesses encountered in the South East
Extension are not considered to be as significant as the gold
grades and thicknesses encountered in the Main Zone.
Table 4: SE Extension Zone Historic 2008 and 2011 and Drill Hole Summary
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Drill hole Inclination From (m) To (m) Interval (m) Au g/t
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CDDH-08-03 -45 31.05 35.05 4.00 0.860
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CDDH-08-03 74.60 78.90 4.30 0.724
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CDDH-08-03 84.80 111.00 26.20 0.275
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CDDH-08-03 183.05 190.30 7.25 0.443
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CDDH-11-08 -50 No Significant Results
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CDDH-11-09 -50 19.45 68.95 49.50 0.200
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CDDH-11-10 -50 19.05 76.20 57.15 0.177
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includes 51.85 76.20 24.35 0.208
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Sierra Madre CEO, Carl von Einsiedel, P.Geo. comments: "the 2011
drill results from El Capitan have confirmed there is potential for
a bulk tonnage low grade gold deposit at El Capitan. The next step
for Sierra Madre will be to continue the drilling program and
metallurgical test work and delineate the extent of mineralization
within the Main Zone. The ability to conduct year round, low cost
drilling operations should make it possible for the Company to
advance the project with a minimum of shareholder dilution."
QA / QC for the Sierra Madre drill program
All drill core was placed in numbered boxes and transported to
Sierra Madre's secure core facilities by the drill contractor.
Following detailed core logging all core was split using a diamond
bladed core saw under the direct supervision of Sierra Madre's
Geologic staff. One half of core was kept on site in the original
core boxes, the second half was placed in labeled and sealed sample
bags which were transported directly to the custody of Inspectorate
America Corporation ("Inspectorate"), a laboratory certified for
the provision of assays and geochemical analysis (ISO:9001-2008).
Samples were transported to Inspectorate's facilities in Durango,
Mexico for prep work and analyzed at their facilities in Reno,
Nevada. All samples were prepared using standard industry prep
methods followed by fire assay analysis and aqua regia digest for
trace elements. All samples with greater than 10 g/t Au were
additionally tested by fire assay with a gravimetric finish. Sierra
Madre has included 4% industry certified Au standards and blanks
within the sample stream in addition to field duplicates as part of
the QA/QC program. Inspectorate includes a minimum of 9% certified
standards and duplicate analysis as part of their laboratory
procedures.
Additional gold metallic screen assays were performed on 85
select samples to check for a coarse gold component. Samples were
crushed to 150 mesh and both the +150 mesh and -150 mesh portions
were assayed for gold. The results show 70 of 85 samples in which
95% of the total gold is present in the -150 mesh assay. Only two
samples display results where greater than 10% of total Au is
present in the +150 mesh portion of the assay.
Carl von Einsiedel, P.Geo., is Sierra Madre's Qualified Person
who reviewed and approved this press release.
About Sierra Madre Developments and the Penoles Project: Sierra
Madre is a recently listed junior mining company based in
Vancouver, British Columbia, Canada. Management has extensive
exploration and mining expertise and the Company's business model
is to acquire advanced gold and silver projects and build
shareholder value by rapidly advancing our projects through the
resource delineation stage.
Pursuant to an agreement signed March 4, 2011 with Riverside,
Sierra Madre has the right to earn up to a 70% interest in the
Penoles Project by making payments to the underlying owners,
incurring staged exploration expenditures and issuing shares in
stages to Riverside. In addition to El Capitan the project hosts
two historic silver mines that were operated in the late 1800's and
a highly prospective 35,000 hectare land package. There is very
little technical data available regarding the mines but it appears
they have never been drill tested. Concurrent with the drilling
program at El Capitan, extensive backhoe trenching was carried out
at one of the historic mines (Jesus Maria) to assess the thickness
and grades encountered in the historic mining operations. On
completion of the drilling program at El Capitan a single drill
hole was completed to test if mineralization continues at depth
below the historic mine workings. Results of the trenching and
drilling will be announced as they become available.
ON BEHALF OF THE BOARD OF DIRECTORS
Sierra Madre Developments Inc.
Carl von Einsiedel, Chief Executive Officer and Director
To view the Drill Hole Location Map, please visit the following
link:
http://media3.marketwire.com/docs/Drill_Hole_Location_Map.pdf.
FORWARD-LOOKING STATEMENTS DISCLAIMER: Certain statements in
this press release may be considered forward-looking information.
These statements can be identified by the use of forward-looking
terminology (e.g., "expect"," estimates", "intends", "anticipates",
"believes", "plans"). Such information involves known and unknown
risks -- including the availability of funds, the results of
financing and exploration activities, the interpretation of
exploration results and other geological data, or unanticipated
costs and expenses and other risks identified by Sierra Madre in
its public securities filings that may cause actual events to
differ materially from current expectations. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release.
Neither the 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 news release.
Contacts: Sierra Madre Developments Inc. Carl von Einsiedel
Chief Executive Officer and Director (604) 685-3357
(TSXV:SMG)
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