News Release: August 4th, 2005
Yago Gold-Silver Project
Optioned
Almaden is pleased to announce that it has
signed an option agreement with a private British Columbia company
("the Company") which intends to go public within six
months. The company can earn a total of 60% of the Yago project
from Almaden by issuing a total of 600,000 shares of the public
company to Almaden and incurring exploration expenditures of
US$4,000,000 over seven years. The Company is committed to spending
US$500,000 in the first eighteen months and has initiated a work
program on the property.
The Yago project covers a large area of hydrothermal
alteration characterised by acid-sulphate kaolinite-alunite alteration
and spatially associated strataform replacement silica alteration.
Both these styles of alteration occupy areas of relatively higher
relief on the property and are interpreted to represent the original
surface or paleo water table of the hydrothermal system. In areas
of erosion beneath these styles of alteration, quartz veins are
exposed that exhibit classic low-sulphidation epithermal textures
such as banded and crustiform chalcedony and quartz crystallised
from amorphous silica. The northern half of the Yago project
is underlain by a series of at least five low-sulphidation epithermal
veins named the La Sarda-San Juan, La Esperanza, La Magnolia,
La Cucaracha and El Dragon. These structures are sub-parallel,
southeast--dipping quartz-adularia veins that occur over an area
of 1500 by 1200 metres. There has been limited production from
each of these veins, but the majority of production has been
from the La Sarda-San Juan vein. Based on fluid inclusion analyses,
alteration mineralogy and geochemical data gathered the veins
identified are interpreted to represent a very shallowly eroded
epithermal gold-silver system. An IP geophysical survey has been
carried out over this part of the property. This survey was particularly
effective in delineating these structures as resistivity highs
and extended the potential strike length of the La Sarda-San
Juan Vein by 260 metres to the northeast. The resistivity high
representing the vein extended to the northern boundary of the
IP survey area. Subsequent prospecting identified banded chalcedonic
quartz veining 550 metres northwest of the La Sarda-San Juan
Vein workings.
Past drilling was limited to one of these
veins, known as the La Sarda-San Juan vein. This past drilling
consisted of 1,098.2 meters in six diamond drill holes on the
La Sarda-San Juan vein, one of the four parallel veins of the
northern portion of the project. Of these holes one was lost
before it reached its target depth and in another hole the vein
intersection was ground and not recovered. The drillholes that
did intersect the La Sarda-San Juan structure indicate that the
vein remains open at depth and extends approximately 170 metres
northwest of known workings. Intersected widths of the vein ranged
from 0.3 to 4.71 metres and grades were from 0.30 to 4.74 g/t
Au. An independent review of the drilling determined that the
recoveries of vein intersections averaged less than 30% in the
drill program. The drilling information to date is thought not
to have adequately tested the La Sarda-San Juan vein system.
This interpretation, in addition to poor recoveries, is based
on the geologic concept of a shallowly eroded vein system which
needs to be tested deeper than the limited drill program reached.
The Esperanza vein system has not been tested
by drilling. This vein system is parallel to, and is located
roughly 500 meters east of the La Sarda-San Juan vein. Four grab
rock samples of outcrop have been taken recently by an independent
geologist on the Esperanza vein. These samples average 14.6 g/t
Au and 167.1 g/t Ag and range from 4.9 to 23.3 g/t Au and 121.8
to 249.8 g/t Ag. The Esperanza vein has been traced over a strike
length of over a kilometre.
Victor Jaramillo, P.Geo., working under contract
to the company, is the qualified person, under the meaning of
National Instrument 43-101, and has reviewed the data acquired
on the Yago projects. Analyses were carried out by ALS Chemex
and Acme Analytical Laboratories of Vancouver.
Almaden currently has twelve active joint
ventures. This includes eight agreement under which other companies
are earning an interest in the Almaden projects by spending,
and a regional exploration program with partner BHP Billiton
underway to explore for copper-gold deposits in Mexico. In addition,
Almaden is continuing its aggressive exploration efforts in Mexico
and Canada.
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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