Altan Nevada Announces First-pass Drill Results from Black Top and Identifies New Target Zone

company news | Projects : Black Top
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August 22nd, 2012 – Vancouver, British Columbia – Altan Nevada Minerals Limited, TSX.V: ANE (“Altan Nevada” or the “Company”) today announces encouraging geological results from the reconnaissance drill program at the Company’s Black Top gold project (100%) (“Black Top”) located in Nye County, Nevada.

Highlights

  • 8 wide spaced reverse circulation (RC) drill holes for 3,177.5 m were completed, designed to focus future efforts in the most highly prospective portions of the large 36.6 km2 project
  • 6 of the 8 holes encountered anomalous levels of gold and pathfinder elements including arsenic, antimony, mercury, tellurium and thallium, substantiating the presence of a large epithermal gold system
  • Down-hole geochemical results confirm the low-sulfidation nature of the gold system, similar geochemically to Barrick Gold’s Round Mountain deposit
  • Down-hole multi-element geochemical data have now been modeled and point to a possible source region for gold fluids in a large concealed and untested resistivity anomaly of the Rachel Grade zone
  • Targeted follow-up drilling to identify an ore body is planned

Mr. Kelly Cluer, Altan Nevada’s Director of Exploration, stated “For a modest first round program of wide-spaced drilling, the presence of low level gold and highly elevated arsenic and mercury values over a large area at Black Top are very encouraging. A large epithermal gold system is present at Black Top; we just need to find the ore body. With these new reconnaissance drill results in hand we can see geological and geochemical vectors that point directly toward the large Rachel Grade resistivity anomaly which can now be modeled as a potential source region for gold-bearing fluids. The large size of this feature warrants 4 to 5 first-pass exploratory holes.”

Black Top Drill Results

A total of 3,177.5 m of RC drilling was completed in 8 holes by Envirotech Drilling of Winnemucca, Nevada. Holes ranged in depth from 262.1 to 609.6 meters. All holes were completed to target depth.

An epithermal gold system is present over a broad area with the highest value intersected being 0.109 g/t Au over 6.1 m in BT-006. Anomalous gold was encountered in 6 of 8 holes (see Table 1). Importantly, all anomalous gold is associated with a robust epithermal trace element suite present in all 8 holes that includes arsenic, antimony, bismuth, mercury, tellurium and thallium.

combined

Figure 1. Black Top drill hole location map (with Nevada location map inset) showing three main target areas tested and the concealed resistivity target at Rachel Grade. Note line of section for Figure 2.

Elevated arsenic values were present in all 8 holes, commonly exceeding 500 ppm with the highest value being 919 ppm over 6.1 m in BT-006.  Additionally in hole BT-001 a cumulative 91.4 m at 324.2 ppm arsenic was intersected (using a 50 ppm As lower cut-off), which is considered to be robust arsenic mineralization in the context of an epithermal gold system.

A very long run of mercury mineralization (170.7 m @ 1.83 ppm Hg) with values up to 3.71 ppm over 6.1 m was intersected in hole BT-003, largely confined to the rhyolite volcanic package, and suggests good formational characteristics for the development of an ore body.

Jasperoids were encountered at the Tertiary volcanic / Paleozoic sedimentary rock contact zone (see Figure 2) where receptive “silty” carbonate units contain high thallium, up to 13 ppm over 6.1 m in BT-007, and highly elevated antimony, up to 360 ppm over 1.5 m in BT-002.

Only trace levels of silver were reported which, in conjunction with the low-sulfidation nature of the system, is considered positive, being similar geochemically to the 10 million+ Au ounce Round Mountain Gold Mine some 140 kilometers along strike to the northwest.

The elevated gold, arsenic, mercury, bismuth, antimony, tellurium and thallium values are typical of epithermal gold geochemistry and the extensive nature of geochemical anomalies confirms the presence of a large-scale system.

At Rachel Grade the Phase I drill program was focused on IP chargeability features. Going forward, the Company will re-double its efforts on the high resistivity portion of Rachel Grade geophysical target, where an intriguing anomaly has been imaged at depth. The Rachel Grade resistivity feature is modeled as a potential source region for gold-bearing fluids, occurring immediately down-plunge of the drill intersected mineralization of the Middle Domain zone (see Figure 1). This IP resistivity target has not yet been tested and will require 4 to 5 holes in a Phase II drill campaign. The target here is large, and its location within the overall mineral system is compelling (see Figure 2).

ANE_Black-Top_2012-Drill-Table

Table 1. Summary results for Phase I Black Top drill program

BT_cartoon_section_X

Figure 2. Conceptual section looking northeast showing modeled results of drilling and geophysical surveys, indicating large target associated with the Rachel Grade Resistivity high feature. Tv = Tertiary volcanic rocks, Pz = Paleozoic sedimentary rocks; the unconformity between these two units is considered a primary epithermal fluid pathway.

Drill samples were logged and marked by Altan Nevada geologists and submitted to American Assay Labs (Sparks, Nevada) for sample preparation and assay work. Some original five-foot (1.5 m) drill sample intervals were used for assay, while all other samples were composited from the original five-foot interval into a twenty-foot (6.1 m) interval by the lab for assay. American Assay Labs performed all gold and trace element assays pertaining to the drill cutting samples highlighted in the text and table above. Gold was analyzed by fire assay; all other elements were analyzed using aqua regia digestion and ICPMS measurement. The Company maintains a QA-QC program regarding the preparation, shipping, and checking of all samples, including the use of certified standard reference materials, blanks, as well as field and pulp duplicates.

About Altan Nevada

Altan Nevada is a leading exploration innovator focused on the discovery of large-scale ore systems in under-explored districts of Nevada, USA. The Company’s holdings in Nevada currently total more than 17,500 hectares. Projects include two potential district-scale extensions to the north Carlin Gold Trend, three Yerington District copper-gold targets and three large-scale gold alteration systems along the Walker Lane lineament in central Nevada. To date, over US$5M has been spent acquiring and exploring highly prospective projects and identifying drill targets.

Competent Person Statement

Altan Nevada’s Exploration Director, J. Kelly Cluer, a Certified Professional Geologist (AIPG) and a Qualified Person as defined by National Instrument 43-101, has reviewed the preparation of the scientific and technical information in this press release in respect to the Black Top Project.

On behalf of Altan Nevada Minerals Limited,

“Evan Jones”

Evan Jones, President & CEO

For more information please contact:

Kelly Earle, Corporate Communications Manager

Altan Nevada Minerals Limited

Tel: +1 604 495 8374 x 220

Email: [email protected]

Web: www.altnev.com

This press release may contain forward looking statements including those describing Altan Nevada’s future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Altan Nevada and its management.

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.