March 21, 2012, Calgary, Alberta: Antioquia Gold Inc. (“Antioquia Gold” or “the Company”) (TSX-V: AGD; OTCQX: AGDXF) plans to use key results from its 2011 exploration program to benefit the next phase of advanced exploration at its flagship Cisneros Project, moving the Company forward in 2012.
During 2011, Antioquia Gold completed 18,988 metres of diamond drilling that further delineated a prospective mineralized zone containing two deposits (Guayabito and
Guaico) and seven areas of significant interest, including the newly discovered and significant Papi. This mineralized zone is located in the original exploration area on the
Cisneros Project. Refer to Figure 1.
The Company completed an airborne geophysical survey over the entire Cisneros Project in February 2011. The results of this survey, combined with existing surface samples and geochemical and structural analysis, identified four additional regional exploration zones with characteristics similar to the Guayabito and Guaico deposits,
adding significant exploration potential to the overall property. Refer to Figure 2.
In addition to its drilling program, the Company conducted the following work in 2011:
• Environmental studies to prepare for permitting for future mining development including exploration tunnels;
• Metallurgical testing of various ore types from core samples, confirming excellent gold recovery using conventional gravity and flotation processing systems;
• Investigation of two of the four regional exploration zones, the Bareño and Los Planes zones (see figure 2), which host structural framework and geochemical signatures similar to those at the Guayabito and Guaico deposits;
• Conducted an internal review of the requirements for a 600 tonne per day gold processing plant;
• Sourced and secured previously-owned processing plant equipment for potential use at Cisneros;
• Carried out an internal examination of mining methods based on experience at the Parcoy Mine in Peru owned by the Company’s strategic partner Consorcio
Minero Horizonte (CMH).
The company also completed technical reports in 2011 on its seven properties of merit in the Cauca Belt. The Company continues to evaluate JV opportunities with other parties
in efforts to independently add value to these properties.
Plans and Outlook for 2012
In 2012, the Company’s main focus will be on advancing exploration at its flagship Cisneros Project.
Antioquia Gold has the following benchmarks in place for 2012 at Cisneros:
• A 20,000 metre drilling program designed to assist the Company in determining whether the property contains the resources needed to support a production scenario of 600 tonnes per day over a 10 year period;
• Further explore the four additional regional exploration zones identified in 2011 to assess their potential, especially at Bareño and Los Planes;
• Develop an exploration tunnel in the Guaico area to further delineate mining potential, conduct geotechnical and hydrological studies, provide bulk ore samples for metallurgical assessment and access for underground diamond drilling exploration;
• Complete the following technical studies:
o Modern underground mining operation employing trackless equipment,
o 600 tpd gold processing facility incorporating previously-owned equipment sourced in 2011,
o Dry tailings disposal and rock dump areas capable of handling projected volumes from the above facility;
• Investigate financing alternatives that maximize shareholder value.
Finally, assuming positive results for these benchmarks by the end of 2012, the Company hopes to be in a position to decide whether to proceed with a production
scenario, with gold production anticipated in 2014.
Mr. Ian Fraser, Chief Geologist, will be leading the 2012 exploration and drilling program. Mr. Brad Van Den Bussche will lead the Company in its pursuit of new areas for
development, including the seven properties of merit in the Cauca Belt. Accordingly, his title will change from VP, Exploration to VP, Business Development effective April 2, 2012