Palamina Reports 620 Gpt Gold & 1.8 Metres of 19.6 Gpt Gold at Coasa Project in Peru

Palamina Corp.’s (PA:TSX.V) recent field campaign at its Coasa Gold Project in south eastern Peru continues to confirm the presence of high grade gold at surface in the Veta Zone where continuous channel sampling returned 1.8 metres of 19.6 g/t gold and 0.9 metre of 103 g/t gold. The recently discovered zone of surface gold mineralization has now expanded to cover an 800 by 500 metre area and further selective rock-chip sampling in the Veta Zone returned up to 620 g/t (19.9 oz/t) gold.

A total of 176 geochemical samples were collected at the Veta Anomaly during the August field campaign; 155 as continuous channel samples varying from 0.9 to 4.5 metres true width across mineralized structures hosted by intermittent in-situ outcrops located on scree-covered slopes throughout the Veta discovery zone.   Overall 64% of channel and rock-chip sampling results returned anomalous gold grades (> 0.1 g/t gold), 15% resulted in gold contents > 1 g/t gold and 3% > 10 g/t gold (or 8.5% > 2 g/t gold).  Four visible native-gold-hosting structures have now been discovered.

Andrew Thomson, President of Palamina stated, “The footprint of the Veta gold discovery zone at Coasa continues to expand.  Channel sampling has confirmed significant gold mineralization within the slate and siltstone host rocks and returned up to 1.8 metres of 19.6 gpt gold. The heli-borne geophysical survey underway is over 50% complete and will serve to better understand the prospective structures at Coasa.”

Select channel and rock chip sampling* above 1.0 g/t gold from the August field campaign are as follows:

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The 800 x 500 metre Veta anomaly is located within a larger 1.8 x 0.5 km prospective area of structural deformation (folded and possibly tectonically displaced shear zones), which accommodates lesser folded fault-shear structures incorporating both sub-parallel aligned as well as transversally aligned swarms of gray-white quartz veins, veinlets and micro-veinlets. These, in turn, are hosted by sub-vertically aligned fine-grained sedimentary sequences of slates and siltstones belonging to the Ananea Formation.

The 5 best channel and rock chip sample results from all exploration campaigns and select results >1 g/t gold in the Veta Zone are reported below:

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Encouraging analytical results obtained from recent sampling and mapping campaigns on the Coasa Gold Project´s Veta Anomaly are confirming the exploration potential of this highly prospective zone of orogenic gold mineralization.  Up to three suites of differently oriented mineralized quartz veins, veinlets and micro-veinlets have been recognized. The most dominant suite is developed along a WNW trend. The above information, coupled with the confirmed coincidence of several established mineralizing controls pertinent to orogenic gold deposits occurring within the POGB, provides a sound grounding for future drill testing of the Veta Anomaly. Social and environmental permitting as well as drill permitting are underway.  

Amongst others, coincident mineralizing controls established at Veta include a recognized prospective host lithology, prospective regional- and local-scale structures, nearby intrusive bodies resulting in favourable low-grade metamorphic effects, a complex structural setting conducive to a variety of multi-gold remobilization events, a low-percentage (<5%) of sulphide content (py>aspy>pyrr), etc.  It is important to highlight that visible observation in conjunction with analytical results confirm negligible bismuth, antimony, copper and other “contaminants” in association with the native free-gold mineralization detected to date at Veta.

Future planned exploration activities designed to confirm the frequency and density of mineralized structures, in the build-up to trenching and diamond drilling, will include systematic channel sampling of the broad mineralized zones identified to date, soil sampling will be considered over areas without rock exposure, and possible ground geophysical studies as partial follow-up to the results of the >3,000 line-kilometre heli-borne magnetic/radiometric survey currently being conducted over the Coasa, Gaban and Cori Projects, now over 50% complete.

Palamina Corp. quality assurance/quality control (QA/QC) protocol is administered on all its exploration projects. Prior to delivery of field samples to the analytical laboratory and with the objective to provide an independent check on precision, accuracy and contamination in the laboratory, Palamina QAQC staff insert blank samples, field duplicates and certified standards into the sample stream. To assure best practice compliance, assay results are only reported once the results of internal QAQC procedures have been reviewed and approved.  

Mr. Donald McIver, M,Sc Exploration and Economic Geology, a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM), as well as the Society of Economic Geologists (FSEG), is Vice President Exploration for Palamina Corp. He is a Qualified Person as defined by National Instrument 43-101 and has supervised the preparation, compilation and review of the geological and technical contents of this press release.

About Palamina Corp.  

Palamina has acquired the application and mining rights to five gold projects in south-eastern Peru in the Puno Orogenic Gold Belt (POGB), one copper-gold project in the coastal I.O.C.G. belt in Southern Peru and holds 100% interest in one exploration project in Mexico. Palamina’s Peruvian based exploration team have a cumulative 35 years’ experience in the POGB and are supported by a board of directors and advisors who are proven mine finders, deal makers and financiers. Palamina has 29,621,381 shares outstanding and trades on the TSX Venture Exchange under the symbol PA. 

FOR FURTHER INFORMATION PLEASE CONTACT:

Andrew Thomson, President
Phone: (416) 987-0722 or visit www.palamina.com

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