FIORE GOLD PROVIDES AN UPDATE ON ITS CHILEAN EXPLORATION PROJECTS
July 12, 2018
Vancouver, British Columbia – FIORE GOLD LTD. (TSXV: F) (OTCQB: FIOGF) (“Fiore” or the “Company”) is pleased to provide an update on its exploration projects in Chile.
On the Rio Loa project, where Fiore recently identified a high-sulphidation gold target, the Company has negotiated a 12-month extension for completing the remaining work program required to complete the 100% earn-in on the project. Under the terms of the agreement, Fiore will issue 150,000 shares to the vendors, subject to exchange approval, in return for extending the deadline to complete the work to July 12, 2019. Previously announced results (PR of March 26, 2018) from geological and geophysical programs at Rio Loa have identified several drill targets, and this extension provides the Company with an additional Andean exploration season (September through May) to carry out the next phase of work, which would include a first-pass drilling program. The Miocene-age Maricunga Gold Belt has been the focus of renewed exploration for large epithermal systems over the past several years, and Rio Loa is particularly interesting because of its proximity to Gold Fields’ 3.8 million-ounce Salares Norte discovery, currently one of the highest-grade gold deposits in the Maricunga Belt.
On Cerro Tostado, the Company is evaluating various options to advance the project, including the addition of a joint-venture partner. Previous exploration work, including core and reverse circulation drilling, has identified a series of parallel high-grade silver zones (see PR of October 11, 2017). Exploration expenditures by Fiore are sufficient to cover the required work commitments through January 2020 and all payments on the project are up to date.
Tim Warman, Fiore’s CEO stated, “While our recent focus has been on our producing Pan Mine and the Gold Rock development project in Nevada, we continue to believe our Chilean assets hold considerable value as part of our overall pipeline of projects from early exploration through to production. We are particularly encouraged by the results from our Rio Loa project, and appreciate the cooperation of the Chilean vendors in agreeing to an additional field season to complete the work commitments.”
On the Pampas el Peñon project, Fiore has notified the owner, Sociedad Quimica Y Minera de Chile SA (“SQM”), that it is withdrawing from the option agreement effective July 11, 2018. While results from our initial surface exploration and structural studies identified a series of promising targets, the subsequent nineteen-hole drilling campaign failed to intersect economic values of gold and/or silver. Following a recent evaluation of all our Chilean assets, management has determined that Pampas el Peñon does not merit further expenditure.
Our corporate strategy is to grow Fiore into a 150,000 ounce per year gold producer. To achieve this, we intend to:
- grow gold production at the Pan Mine from a planned 35-40,000 ounces in fiscal 2018 to between 40-50,000 ounces per year by fiscal 2019, while also growing the reserve and resource base;
- advance exploration and development of the nearby Gold Rock project; and
- acquire additional production or near-production assets in Nevada and surrounding states.
The scientific and technical information relating to Fiore’s Chilean properties contained in this press release was approved by Vern Arseneau, P. Geo, Fiore’s Vice-President of Exploration, Latin America and a “Qualified Person” under National Instrument 43-101.
On behalf of FIORE GOLD LTD.
Chief Executive Officer
1 (416) 639-1426
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 release.
Cautionary Note Regarding Forward Looking Statements
This news release contains “forward-looking statements” and “forward looking information” (as defined under applicable securities laws), based on management’s best estimates, assumptions and current expectations. Such statements include but are not limited to, statements with respect to the expected geologic characteristics associated with the Rio Loa property (including geochemical anomalies, geophysical anomalies, potential for gold mineralization, potential for high-sulphidation gold system, oxidation characteristics, geological alterations and geologic formations), expectations regarding a future drilling program for Rio Loa, any prospects that future exploration will be successful, gold production projections for fiscal 2018 and 2019, advancing exploration and development of the Gold Rock project, goal to become a 150,000-ounce producer, goal to acquire additional production or near production assets, and other statements, estimates or expectations. Often, but not always, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “targets”, “forecasts”, “intends”, “anticipates”, “scheduled”, “estimates”, “aims”, “will”, “believes”, “projects” and similar expressions (including negative variations) which by their nature refer to future events. By their very nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Fiore’s control. These statements should not be read as guarantees of future performance or results. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, as well as a number of assumptions made by, and information currently available to, the Company concerning, among other things, anticipated geological formations, potential mineralization, future plans for exploration and/or development, potential future production, ability to obtain permits for future operations, drilling exposure, and exploration budgets and timing of expenditures, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Fiore to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to vary materially from results anticipated by such forward looking statements include, but not limited to, risks related to the Pan Mine performance, risks related to the company’s limited operating history; risks related to international operations; risks related to general economic conditions, actual results of current or future exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; uncertainties involved in the interpretation of drilling results, test results and the estimation of gold resources and reserves; failure of plant, equipment or processes to operate as anticipated; the possibility that capital and operating costs may be higher than currently estimated; the possibility of cost overruns or unanticipated expenses in the work programs; availability of financing; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of exploration, development or construction activities; the possibility that required permits may not be obtained on a timely manner or at all; changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Fiore operates, and other factors identified in Fiore’s filing with Canadian securities authorities under its profile at www.sedar.com respecting the risks affecting Fiore and its business. Although Fiore has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward-looking information are made as of the date hereof and are qualified in their entirety by this cautionary statement. Fiore disclaims any obligation to revise or update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results, events or developments, except as require by law. Accordingly, readers should not place undue reliance on forward-looking statements and information.