Feb. 15, 2012
/PRNewswire/ - Pan American Goldfields Ltd. (OTCQB: "MXOM") (the "Company", "PAG") is pleased to announce that a NI43-101 compliant technical report on its Cerro Delta project in
has been filed on SEDAR. The report was prepared on behalf of Pan American by Mr.
of Gustavson Associates of
and is dated
January 30, 2012
. The report summarizes the geology, geophysics and mineralization of the project area and reviews the exploration plan that is the basis of the current exploration program that is currently underway.
The technical report prepared by Gustavson Associates summarizes the Cerro Delta project as follows: "PAG's Cerro Delta Project is an early stage exploration project with potential to discover porphyry gold (copper) deposits at depth. This conclusion is based on the location of the Cerro Delta Project in the Maricunga Gold Belt of
, combined with the results of previous investigators geologic mapping, rock chip sampling, soil sampling and geophysical surveys. The geophysical surveys identified potential drilling targets at depths in the range of 150 to 500m. Furthermore, there are strong indications that other targets representing structurally-controlled epithermal exist on the Cerro Delta prospect."
The Cerro Delta property covers an area of 20,721 hectares in the far northwestern part of La Rioja Province,
. It is within the southern portion of the "Maricunga Gold Belt" and at the current level of understanding; it shares many of the same characteristics as the many large gold and gold/copper deposits which define this belt. It is located about 20 km. to the east of the Cerro Casale deposit of Barrick/
and 30 km. southeast of the Caspiche deposit of
Resources, both of which host resources exceeding 25 million ounces of gold and 6 billion pounds of copper. As stated in the technical report "the Cerro Porfiro copper-gold mineralization compares favorably with the "Porphyry Gold" model cited for the mineralization common in the Maricunga Belt, specifically at Cerro Casale, Refugio, etc."
, an expert regarding porphyry style gold deposits and the head of the ore deposit geology department at Novosibirsk State University in
is also an adviser to Pan American's board of directors. He recently visited the Cerro Delta and after noting what he described as the "huge size of the Cerro Delta's alteration zone which is similar to alteration zones in neighboring known deposits" he summarized his findings by saying: "There is clear correlation by age of host rocks, by age of mineralization, by geological setting, and in addition they are located in one tectonic structure. Taking into account our knowledge of Chilean properties especially their geology there is good possibility to find something similar at Cerro delta."
Early prospecting in the wider Cerro Delta area was conducted by Cia Alto Rio Salado in 1992. In 1993/94 a strong Au anomaly in outcrops on the southern end of the Cerro Delta prospect was delineated. Additional sampling was conducted and provided the first evidence of mineralization in a porphyry intrusive apophysis in the granodiorite to the west of Cerro Delta, now known as Cerro Porfiro. In 1996/97, the first systematic exploration work was done on the property using an extensive program of soil geochemistry, rock in outcrops and trenches. Geophysics survey were conducted as well (magnetics, resistivity and induced polarization). A large gold-in-soil anomaly and a strong IP (Induced Polarization) anomaly in the area of both Cerro Porfiro and Cerro Delta were defined. The surface trenches showed samples yielding gold values in rock up to 0.8 g/t associated with stockwork sulfide veinlets at Cerro Porfiro and up to 4.0 g/t in the silicified breccias at Cerro Delta.