News Article
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| TSX: BGL September 20, 2006 Cinco Minas Exploration Update for August/September In August and early September 2006, the horizontal and vertical extent of potential ore zones has been increased dramatically as a result of ongoing geological work in the area. A significant amount of work has been completed to expose vein locations that were either not reported upon in earlier reports or the information was limited. The thrust of these investigations is to increase the geological knowledge of the property and develop significantly greater resource definition. Three zones have been identified and intensively explored during this period outside of the main mine workings at Cinco Minas. The zones are just NW of the San Juan mine (La Mina Del Coral), the volcanic cone structure NNW of Coral and Cerro Colorado. Cerro Colorado, which was reported on in our last exploration update, has been sheared down to a flat quarry plateau and is now ready for quarry development. The exposed vein system now at surface is approximately 55 meters with a variable true width up to 8 meters dipping to the SW at roughly 60°. Approximately 4,000 tonnes of mineralized vein rock has been stockpiled from this operation to date. Other structures, the Las Animas mine and the La Plascencia, adjacent to, but independent of the main mine workings at Cinco Minas have shown considerable potential for development. Field explorations identified the hosting volcanic base rocks that come from a large extincty and exploded crater that borders the north side of the vein. This crater is a massive structure that warrants further attention. Several field trips across the cone were taken and many new volcanic sequences have been identified and sampled. Very old Spanish mines were uncovered and sampled. Some of these very large, near vertical flow and vein structures have been extensively worked but no history is available on them. From this work it appears that the potential of very high grade workings can be developed in the footwall structures that are adjacent to but independent of the main mine workings. Assay values of Au between 1.5 and 2.2 ppm and Ag between 192 and 400 ppm have been obtained from exposed vein rock. The grid sample program also resulted in the discovery of no less than 5 old mines that had been lost to the dense bush overgrowth. Some of these mines extend for over 40 meters and have several cross adits, raises and collapsed drifts. It is safe to say that the minable area presented on this end on structure is very large. It reaches over 100 meters in vertical exposure and is easily reached by existing roads. The information gained during the last several months of geological work will be used to supplement additional information being developed presently for the updated NI43-101 report expected to considerably enhance resource definition and be issued later this fall. Production Update A decision has been made to increase the capacity of the small scale pilot plant from 20 tonnes per day to 60 tonnes per day based on a thorough review by field engineering staff. The resultant increase in capacity will allow for significantly more material to be processed over a shorter period of time, but this also necessitates the installation of a larger process system. This work is ongoing and is expected to be complete later this fall in spite of delays in shipment of materials to site because of extremely wet conditions. The majority of the equipment for the intermediate sized mill is now on site and installation is expected to be complete early in 2007 increasing the processing capacity to approximately 250 tonnes per day. Metric conversion: 1 ppm (1 gram per tonne) equals 0.0292 troy ounces per ton 1 meter equals 3.215 feet The technical information contained in this news release was collected, compiled and reviewed by Richard Munroe, B.Sc., FGAC, P.Geo., a qualified person under NI 43-101. Bandera Gold Ltd. is a Junior Canadian Exploration Company whose corporate strategy is to build shareholder value by finding and developing overlooked and undervalued mineral properties in North America and South America. By partnering with an experienced mining and mineral exploration entity, the Company?s core focus will be the continued exploration and advancement of the Cinco Minas property in Mexico to production, exploration of the Gran Cabrera property in Mexico and the exploration of the Belmira property in Colombia. On behalf of the Board Kelvin Williams, CEO For further information please contact: Kelvin Williams, President (780) 465-4129 Web: www.banderagold.com Or Micro Cap et al, Investor Relations at: (877) 642-7622 E mail: info@microcapetal.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking statements relating to the future performance of Bandera Gold Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation?s filings with the appropriate securities commissions. |
