Palamina Bulk Sample Returns 3.6 gpt Gold at the Usicayos Gold Project, Peru

Rhea-AI Summary

Palamina Corp. (TSXV: PA) (OTCQB: PLMNF) has reported promising results from a bulk sample study at its Usicayos Gold Project in Peru. The 20 kg sample from the SDO east zone returned an average grade of 3.6 g/t gold, with 99.73% determined to be liberated gold. This study, along with metallic screening and photon assaying, is helping establish optimal protocols for the upcoming drill program.

Key findings include:

• 99.73% of gold mass was liberated gold
• 97.88% of gold mass found as free surfaces
• Approximately 10% of gold occurs in grains larger than 150 microns
• Only a small proportion (<1%) of gold surfaces associated with gangue minerals

The SDO zone, hosted in Paleozoic Sandia Formation, is controlled by regional shear zones and measures approximately 1.5 km in width and 2.2 km in strike length. The upcoming drill program will test the interpretation of a possible near-vertical feeder zone at the heart of the SDO zone.

Positive

• Bulk sample returned high-grade gold of 3.6 g/t
• 99.73% of gold mass determined to be liberated gold
• Large SDO zone measuring 1.5 km in width and 2.2 km in strike length
• Upcoming drill program to test potential near-vertical feeder zone

Negative

• Nuggety coarse gold makes it challenging to establish continuity of gold grades

Toronto, Ontario--(Newsfile Corp. - July 22, 2024) - Palamina Corp.'s (TSXV: PA) (OTCQB: PLMNF) 100% owned Usicayos Gold Project is located in the Puno Orogenic Gold Belt where nuggety coarse gold makes it challenging to establish continuity of gold grades. In 2024 Palamina has completed metallic screening, a PhotonAssay® check sampling program and a bulk sample mineralogical study to establish an optimized sampling protocol to minimize variances in gold grades due the nugget effect.

For this first study a 40 kg bulk sample was collected from the SDO east (SDO-E) zone from two adjacent locations, a surface exposure previously channel sampled and a nearby underground adit not previously sampled. The total area sampled measured approximately 15 x 5 metres. Sampling at both locations was continuous and should be considered representative. The composite was then split to a 20 kg sample and delivered to SGS Laboratories ("SGS"). The study returned an overall grade of 3.6 g/t Au where 99.73% was liberated gold and approximately 10% of the gold occurs in grains larger than 150 microns.

"Our first 20 kg bulk sample from the SDO-E zone returned an average grade of 3.6 g/t gold where 99.73% was determined to be liberated gold. Results from this study, along with recently completed metallic screening and photon assaying, are aiding in establishing best protocols to achieve representative gold assay values for the upcoming drill program." stated Andrew Thomson, President of Palamina.

The mineralogical study was completed by SGS using a Tescan Integrated Mineral Analyser (TIMA) method, which combines a Scanning Electron Microscope (SEM) and automated digital imagery processing to determine the grain size, mineral association and liberation of mineral phases. SGS prepared an initial kinematic test, using a standard ball mill to determine the optimal grinding time needed to obtain P₈₀ of 212 microns, the maximum size allowed for the TIMA method. The test showed that the acceptable grain size is achieved after 3.7 minutes. Following the initial kinematic test on the 20 Kg bulk sample, a 1 kg sample was pre-concentrated using a Knelson gravity concentrator to obtain a representative sample for the TIMA mineralogy test. Fire Assay analysis of the 1 kg sample yielded 3.6 g/t Au.

The TIMA test also identified 11 gold grains, one of which had a grain size of over 150 microns. As a percentage of the mass of the gold minerals, 99.73% of the mass was determined to be liberated gold, and 97.88% of the mass was found as free surfaces. Only a very small proportion of the gold surfaces (less than 1%) are associated with gangue minerals such as muscovite, quartz and chlorite (Table 1, Figure 1).

TABLE 1: Mineral association, as a % of mass of all Au grains, from SDO-E bulk sample

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FIGURE 1: Gold grain measuring over 150 microns observed from SDO-E sample

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The SDO zone is hosted in Paleozoic Sandia Formation shale, siltstone and sandstone and is controlled by regional shear zones developed by regional thrusting. The host shear structure at SDO is the widest identified at Usicayos to date, measuring approximately 1.5 km in width and 2.2 km in strike length. Gold mineralization is found along continuous "mantos" developed parallel to foliation along carbonaceous shear zones. The foliation, either side of a major NW-SE fault, dips steeply towards the centre suggesting a possible near vertical feeder zone (or "flower structure") at the heart of the SDO zone. The upcoming drill program at SDO is designed to test this interpretation. A new sampling protocol, designed from the studies completed to date, will be implemented in the upcoming drill program.

Technical Information

The technical information herein has been reviewed and approved by Alvaro Fernandez-Baca (P. Geo.); a Qualified Person as defined by National Instrument 43-101. Mr. Fernandez-Baca is Vice President of Exploration to Palamina.

About Palamina Corp.

Palamina is a gold exploration company with a land bank of gold projects in the Puno Orogenic Gold Belt in southeastern Peru. Palamina is set to commence a drill program at its Usicayos gold project. Palamina holds a 15.4% equity interest in Winshear Gold Corp. (TSXV: WINS). Winshear are scheduled to conduct an inaugural drill program at their Gaban Gold Project in 2024. Palamina also has an "acquire and hold" strategy with copper silver assets in southeast and northeast Peru. Palamina has 71,284,836 shares outstanding and trades on the TSX Venture Exchange under the symbol PA and on the OTCQB Venture Market under the symbol PLMNF.

On Behalf of the Board of Directors:
Andrew Thomson, President
Phone: (416) 204-7536 or visit www.palamina.com

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

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements include, but are not limited to, the use of proceeds of the Offering and the Company's future business plans. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. A more complete discussion of the risks and uncertainties facing the Company appears in the Company's continuous disclosure filings, which are available at www.sedar.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217269

FAQ

What was the gold grade from Palamina's bulk sample at the Usicayos Gold Project?

Palamina Corp. (PLMNF) reported that the 20 kg bulk sample from the SDO east zone at the Usicayos Gold Project returned an average grade of 3.6 g/t gold.

What percentage of gold was determined to be liberated in Palamina's bulk sample?

The study found that 99.73% of the gold mass in the bulk sample from Palamina's Usicayos Gold Project was determined to be liberated gold.

What is the size of the SDO zone at Palamina's Usicayos Gold Project?

The SDO zone at Palamina's (PLMNF) Usicayos Gold Project measures approximately 1.5 km in width and 2.2 km in strike length.

What is Palamina Corp. (PLMNF) planning for the Usicayos Gold Project in the near future?

Palamina Corp. (PLMNF) is planning an upcoming drill program at the Usicayos Gold Project to test the interpretation of a possible near-vertical feeder zone at the heart of the SDO zone.