News Release: Februaru 17th, 2004
Fuego Project Optioned to
Horseshoe Gold Mining Inc.
Almaden is pleased to announce
that it has signed an agreement with Horseshoe Gold Mining Inc.
(Horseshoe) whereby Horseshoe would have the option to earn a
60% interest in the Almaden's wholly owned Fuego gold silver
project in Mexico. The terms of the agreement, which are subject
to regulatory approval, require Horseshoe to spend US$2 Million
exploring the Fuego project and issuing 1,000,000 shares of Horseshoe
to Almaden in order to earn a 50% interest in the property. This
would include a firm commitment to spend US$200,000 by June 30,
2004 and issuing 200,000 shares of Horseshoe upon regulatory
approval. Horseshoe has the option to acquire a further 10% interest
in the property, for a total of 60%, by spending an additional
US$1 Million on exploration. Upon earning a 60% interest in the
property, Horseshoe would have 120 days to acquire Almaden's
remaining 40% interest in the property in return for a 40% interest
in the issued capital of Horseshoe, to be issued by Horseshoe
to Almaden at that time.
The Fuego property is a high-level,
classic quartz-adularia epithermal vein system. The textures
identified, including fine grained silica and electrum banding
and bladed calcite, are typical of that associated with bonanza
grade epithermal vein systems worldwide. Some very limited surficial
historic workings exist on one of several banded veins identified
within a more than 20 meter wide zone of veining and silicification
in volcanic rocks. Banded quartz-adularia veins within the vein
system generally dip shallowly and are up to at least 5 meters
wide. In the initial work the parallel vein system has been traced
nearly a kilometre along strike. To date 16 grab and chip rock
samples have been taken on the property by Almaden, of both banded
quartz adularia vein material and silicified volcanic wall rock.
Of these samples of banded quartz vein material averaged 7.7
grams per tonne (g/t) gold and 300 g/t Ag, with a high of 29.9
g/t gold and 764 g/t Ag. Samples from silicified volcanic rock
within the zone of veining averaged 1 g/t gold and 162 g/t Ag,
with a high of 2.4 g/t gold and 953 g/t Ag. Visible gold was
recognised in several hand specimens collected on the property
which were not sent for analysis. Mr. H.L. King, M.A., P.Geo.,
the independent qualified person on the project under the meaning
of National Instrument 43-101, reviewed this sampling during
a recent site visit. Seven one meter chip samples and one grab
sample were taken by Mr. King of quartz-adularia veining and
silicified wallrock. Analyses of these samples ranged from 0.14
g/t Au and 26 g/t Ag to 10 g/t Au and 381 g/t Ag, and averaged
4.6 g/t Au and 123 g/t Ag. This sampling included 3 continuous
1 meter samples taken roughly across the dip of the accessible
portion of an exposed vein, and averaged 7.8 g/t Au and 191 g/t
Ag over the 3 meters.
The Fuego property has excellent
infrastructure and represents an entirely unexplored epithermal
vein system. Geologic mapping, geochemical rock and soil sampling
and geophysical surveys are planned to define the extent of the
vein system and the distribution of gold and silver. Fluid inclusion
analyses were carried on several samples collected from exposed
veins and confirmed the field interpretation that the veins are
shallowly eroded.
Analyses were carried out
by ALS Chemex Laboratories of Vancouver.
Almaden currently has eleven
active joint ventures covering 12 properties, including nine
properties in which partners are spending to earn an interest
in the project and a regional exploration program with partner
BHP Billiton underway to explore for copper-gold deposits in
Mexico.
ON BEHALF OF THE BOARD
OF DIRECTORS
Morgan Poliquin
The Toronto Stock Exchange
has not reviewed nor accepted responsibility for the adequacy
or accuracy of the contents of this news release which has been
prepared by management. Statements contained in this news release
that are not historical facts are forward looking statements
as that term is defined in the private securities litigation
reform act of 1995. Such forward -looking statements are subject
to risks and uncertainties which could cause actual results to
differ materially from estimated results. Such risks and uncertainties
are detailed in the Company's filing with the Securities and
Exchange Commission.
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