Caza Gold options up to 75% of Piedra Iman to B2Gold

2013-06-12 08:13 ET - News Release

Dr. Greg Myers of Caza Gold reports

Caza Gold Corp. has signed a binding letter agreement with B2Gold Corp., whereby B2Gold can earn an initial 60-per-cent interest and an ultimate 75-per-cent interest in Caza's Piedra Iman copper-gold exploration project in Nicaragua.

Piedra Iman is located approximately 25 kilometres north of B2Gold's operating El Limon gold mine at the northwest end of Caza's large property package in the central gold belt of Nicaragua. The main exploration target appears to be bulk-tonnage porphyry-style copper-gold deposits.

The main copper-gold mineralized zone is hosted by strongly altered igneous rocks over an area at least 800 metres long by 400 metres wide. Alteration consists of several highly silicified igneous breccia bodies surrounded by sericite and clay-altered intrusive rocks. Sheeted magnetite veins in intrusive rocks have been discovered up to 1.5 kilometres from the main mineralized area. The Piedra Iman property has some geologic similarities to the Primavera copper gold porphyry target currently being explored by B2Gold and Calibre Mining in eastern Nicaragua.

This prospective area was explored by Latin American Exploration S.A. in the 1970s, as evidenced by one old adit, now caved, and several old drilling sites. The adit is reportedly at least 300 feet long and trends under the historic drilling sites. Historic reports refer to multiple drill intercepts of high-grade copper mineralization from a 1972 drilling program. Gold and silver were not assayed for by Laminex.

Original drill hole location maps, drill logs, assay reports and core samples have not been located so this historic information has not been verified. New drilling, sampling and assaying will be required to verify the historic data and determine the potential of the target zone.

                            HISTORIC DRILL HIGHLIGHTS 

                       From (feet)   To (feet) Total (feet)   Metres     Cu%

DDH 787                        15          53           38      11.6    0.8
                               53          92           39      11.9    0.21
                               92         159           67      20.4    0.12
DDH 790                        10          61           51      15.5    0.3
DDH 794                        10          65           55      16.8    0.3
                               65         105           40      12.2    0.53
                              105         167           62      18.9    0.31
DDH 818                       117         156           39      11.9    0.23
                              156         180           24       7.3    1.4
                              294         304           10       3.0    0.7
                              344         354           10       3.0    1.2
                              365         395           30       9.1    1.5
DDH 846                       381         400           19       5.8    2.4
DDH 851                         0          90           90      27.4    0.4

Caza reported previously that 37 of the 125 samples collected by the company contained more than 0.1 gram per tonne gold and 12 samples assayed more than 0.5 gram per tonne gold, with a peak value of 46.0 grams per tonne. Copper values range from 0.01 per cent to 1.82 per cent and 41 of the 125 samples returned over 0.5 per cent copper. All samples were representative surface rock chip grab samples which were prepared by Inspectorate Laboratories in Managua, Nicaragua, and analyzed at its facilities in Reno, Nev. Check samples and blanks were included with the samples to monitor quality assurance/quality control of preparation and assay procedures.

B2Gold can earn an initial 60-per-cent interest by spending $2.5-million on exploration over four years. B2Gold can earn up to a 75-per-cent interest by financing and completing a technical report and feasibility study.

Dr. Greg Myers, PhD, PGeo, president and chief executive officer of the company, is the qualified person who reviewed and approved the contents of this news release.