Alio Gold intersects 6.5 G/T AU over 19 metres at Ana Paula
Wednesday, Mar 14, 2018
Alio Gold Inc (TSX:ALO) (NYSE AMERICAN:ALO) (“Alio Gold” or the “Company”), is pleased to provide the results of the first drill hole from its surface drill program at its 100% owned Ana Paula project in Guerrero, Mexico. The 3,800 metre surface diamond drill program was initiated in January 2018 and consists of six drill holes of 600 to 700 metres each targeting the complex breccia extension below the proposed open-pit.

The first hole (AP-18-283) returned positive results from the near surface hydrothermal breccia south of the proposed pit and on the southern edge of the alteration halo. This first hole intersected the western edge of the complex breccia.

Highlights include:

  • 6.45 g/t gold over 19.0m (from 367m to 386m at the southern edge of the alteration halo)
  • 1.3 g/t gold over 55.7m (from 57.6m to 113.3m in the near surface hydrothermal breccia)
“The results of our first drill hole targeting the high-grade breccia below the proposed pit validate our decision to commence the surface drill program ahead of drilling from the underground decline,” said Greg McCunn, Chief Executive Officer. “The results will allow us to more fully understand the geometry of the complex breccia and the nature and extent of the mineralization ahead of drilling from the underground decline which is expected in Q3 2018. An added objective of our program was to test a lower-grade hydrothermal breccia structure lying south of the proposed pit which have shown positive results from this initial hole.  The lower-grade hydrothermal breccia lies outside of the proposed PFS pit outline.”

The Company has initiated an extensive exploration program at Ana Paula which includes in addition to the surface drill program:

  • Exploration drilling from an underground decline targeting an extension to the high-grade breccia below the proposed open pit and a skarn target below the breccia (decline construction commenced with drilling expected in Q3 2018);
  • Surface drilling to test a high priority target that is 100 metres north of the proposed open pit (drilling to commence following the completion of the surface drill program in Q1 2018), and
  • Regional exploration work on the 56,000 hectare land package including an airborne magnetic survey targeting further breccia or skarn targets (ongoing in 2018).
The current program from surface has been progressing very well with 1,776 metres of the proposed 3,800 metres program drilled to date and assays are pending on the second drill hole.  The third hole was completed on March 11, 2018 and the fourth hole is underway.  As drilling progress rates have been better than planned, the Company expects to be able to finish the program in Q1 with a single drill rig operating.

For more information, please visit: https://www.aliogold.com

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