Fredonia Mining Drills Multiple High-Grade Gold Intervals at Herradura Hill in the El Dorado Monserrat Project
Fredonia Mining Drills Multiple High-Grade Gold Intervals at Herradura Hill in
the El Dorado Monserrat Project
Results include 8.00 meters @ 6.00 g/t Au Eq., and confirm the extension to the west of the main breccia with 84.00
meters @ 0.84 g/t Au Eq.
◾ A wide hydrothermal breccia was intercepted in HDDH047, more than 200 meters below the surface, demonstrating the
deepest mineralization reached thus far at Herradura Hill.
◾ HDDH047 intercepted significant gold mineralization at 269 meters, including 8.00 m @ 6.00 g/t Au Eq., including
3.00 m @ 12.65 g/t Au Eq .
◾ Broad intervals with stockworks and multiple high-grade gold veins in HDDH045 extend the gold mineralization to the
west and at depth.
◾ HDDH045 intercepted at 159 m, 84.00 m @ 0.84 g/t Au Eq, including 0.50 m @ 4.80 g/t Au Eq.; 0.97 m @ 5.49 g/t
Au Eq., and 1.00 m @ 4.46 g/t Au Eq .
HDDH049 intercepted a shallow vein at 42.00 m, 5.60 m @ 2.26 g/t Au Eq., including 1.80 m @ 4.66 g/t Au Eq., and
opens the high-grade mineralization to the East.
◾ Five of the six drill holes confirm extensive and significant gold-silver mineralization including multiple high-grade
intervals and confirm continuity of a 1,100 meters strike length, 180 meters width and up to 200 meters deep below
surface at Herradura Hill.
◾ Prior significant drill results at Herradura Hill includes 95.7 m @ 1.04 g/t Au Eq. including 9 m @ 8.02 g/t Au Eq.
◾ Herradura Hill is just one of multiple targets within our flagship gold-silver project El Dorado Monserrat (6,200 ha),
including the Monserrat West target with significant historical drill results of 2.4 m @ 18.05 Au Eq including 0.5 m @
84.79 g/t Au Eq. (see Fredonia news release dated January 20, 2022).
TORONTO, Jan. 31, 2023 -- Fredonia Mining Inc. (“ Fredonia ” or the “Company”) (TSXV:FRED) announces the successful
completion of its phase III drilling program, consisting of 6 HQ diamond drill holes totaling 1,812.00 m. at Herradura Hill, and 6
HQ diamond drill holes totaling 1,143.00 m. at the Monserrat sector, for an aggregate of 12 holes and 2,955 m.
“We are very encouraged by the first assays received from the 6 drill holes at the Herradura Hill target, while we wait for the
assays from the remaining 6 drill holes at the Monserrat sector,” said Estanislao Auriemma, Chief Executive Officer of
Fredonia. "These positive drill results confirm the existence of a significant mineralized body with the constant presence of
high-grade intercepts, which increase the confidence and potential of the Herradura Hill target. Most importantly, these results
increase the potential as this target remains open in all directions and gold and silver values increase at depth. We are very
excited and impressed by the high proportion of holes that are showing high grade intercepts."
HDDH045 intercepted the stockwork deeper than prior holes, while at the same time intercepted the previously defined veins at
shallower depths. The drill hole included an intercept of 84 m @ 0.82 g/t Au Eq. ; including high grade gold mineralization in
veins and hydrothermal breccia with 0.50 m @ 4.80 g/t Au Eq. ; 0.97 m @ 5.49 g/t Au Eq., 1.00 m @ 4.46 g/t Au Eq. The
sulfide-rich hydrothermal breccias show mineralization both in the matrix and vein clasts, and the system remains open to the
west and at depth.
HDDH047 also intercepted the stockwork deeper than previously drilled, extending its magnitude at depth. The drill hole
intercepted wide hydrothermal breccias with fine sulfides vein clasts, with 6 m @ 1.36 g/t Au Eq.; and multiple high-grade
veins including 8 m @ 6.00 g/t Au Eq .
HDDH048 confirms the larger size of the stockwork to the east of HDDH047 and also at depth, consistent with structures seen
deeper in HDDH040. The drill hole intercepted 12 m @ 1.10 g/t Au Eq. , including high grade gold mineralization in veins and
hydrothermal breccia including 0.4 m @ 5.04 g/t Au Eq., 0.5 m @ 5.19 g/t Au Eq.; and 9.60 m @ 1.04 g/t Au Eq. , including
0.6 m @ 4.27 g/t Au Eq. , and 1.2 m @ 3.42 g/t Au Eq.
Gold and silver mineralized hosted in colloform-crustiform banded vein related to Adularia and bladed calcite from 233.00 m,
indicates that the system is open at depth.
HDDH049 intercepted a huge colloform banded vein at 42.00 m, 5.6 m @ 2.26 g/t Au Eq. Additionally, at the bottom of the
drill hole it intercepted a hydrothermal breccia with sulfides clasts at 253.65 m, 0.75 m @ 1.03 g/t Au Eq., which extends the
system to the east, beyond HDDH029.
HDDH050 intercepted the down-deep continuity and increases the size of the stockworks defined in HDDH033. The
hydrothermal breccias present again rich sulfides both in the matrix and in the vein clasts, showing that the system is open at
depth. However, the oriented core of the drill hole indicates that some veins dip to the north, and require evaluation with a new
drill hole.
HDDH046 was designed as a step back of HDDH037; drilling was located on a block that has been displaced by a fault and
shows unmineralized andesite.
Map showing phase III: drilled collar locations at the Herradura Hill:
Table of drill-hole statistics:
ID Target Easting Northing Altitud Acimuth Dip EOH
HDDH045 La Herradura 2531990 4632843 188 17 -60 269.00
HDDH046 La Herradura 2532061 4632731 179 17 -45 284.00
HDDH047 La Herradura 2532243 4632687 192 17 -45 380.00
HDDH048 La Herradura 2532364 4632755 206 17 -50 335.00
HDDH049 La Herradura 2532455 4632728 194 17 -55 272.00
HDDH050 La Herradura 2532169 4632779 210 17 -60 272.00
Total 1,812.00
Long Section showing the best intercepts, including the current phase III drilling at Herradura Hill:
Herradura Hill consists of a maar-volcano-diatreme surrounded by an extensive brecciated host system, the dimensions of
which are yet undefined being geologically open in all directions.
In a district scale, Herradura Hill lies in a roughly east-west mineralization trend which extends eastwards on strike with
AngloGold Ashanti’s Cerro Vanguardia Mine that is nearby.
Drill holes confirm very broad stockworks, hydrothermal breccias and colloform-crustiform banded veins, hosted in a
phreatomagmatic breccias, felsic domes and dykes that intrude the andesite flows that form the country rock.
Gold mineralization is related to a strong quartz + sericite alteration, bladed calcite and adularia, evidence of a boiling zone in
a low sulphidation epithermal system.
The hydrothermal breccias show mineralization in the matrix, as well as in the veins clasts, indicating that the system extends
at depth, and hasn’t been drilled yet.
The current drill program has been designed to extend mineralization both to the east and west of the known mineralized zone
at Herradura Hill, as well as at depth. Except for HDDH046, all drill holes intercepted gold and silver mineralization extending
the system in all directions.
Fredonia’s targets are focused mainly on two main corridors. The northern corridor includes Abanico, Main Veins, Bajo
Pedernal, Monserrat West and Monserrat East as main targets. Herradura Hill is part of the main southern corridor, more than
5 km long, where additional targets occur such as the Beethoven veins, the geyserite sector and Pamela.
Map showing the location of the main targets of the EDM project.
The intercepts of Phase III drilling in Herradura Hill are shown below:
Including from to Interval(*) Au Eq g/t (**) Au g/t Ag g/t
HDDH045 38.50 39.25 0.75 2.11 1.97 10.24
HDDH045 55.00 60.00 5.00 0.62 0.57 3.50
HDDH045 159.00 243.00 84.00 0.82 0.38 32.74
including 167.00 167.50 0.50 4.80 0.71 307.10
and 175.90 176.87 0.97 5.49 4.34 86.08
and 226.00 227.00 1.00 4.46 1.79 200.50
HDDH046 92.00 93.00 1.00 1.39 0.11 96.26
HDDH047 83.00 84.00 1.00 4.58 3.14 107.98
HDDH047 91.00 91.55 0.55 2.02 1.90 8.76
HDDH047 99.00 107.00 8.00 0.50 0.45 3.92
HDDH047 142.00 148.00 6.00 1.36 0.90 34.74
HDDH047 269.00 277.00 8.00 6.00 5.26 55.65
including 274.00 277.00 3.00 12.65 11.77 66.12
HDDH047 285.20 288.50 3.30 1.79 1.73 3.88
including 286.60 287.30 0.70 4.92 4.81 8.04
HDDH048 62.00 71.00 9.00 0.63 0.57 4.63
including 67.00 70.00 3.00 1.60 1.47 9.99
HDDH048 113.00 116.40 3.40 1.97 1.51 34.65
HDDH048 149.00 161.00 12.00 1.10 0.89 15.89
including 149.00 149.40 0.40 5.04 4.81 17.07
and 155.50 156.00 0.50 5.19 5.07 8.64
HDDH048 186.00 191.00 5.00 1.07 0.52 41.67
including 187.00 190.00 3.00 1.54 0.76 58.22
HDDH048 220.60 230.20 9.60 1.04 0.76 21.16
including 224.00 224.60 0.60 4.27 3.67 44.75
and 229.00 230.20 1.20 3.42 3.26 12.21
HDDH048 233.00 233.40 0.40 2.77 2.60 12.59
HDDH049 42.00 47.60 5.60 2.26 1.92 25.92
including 45.20 47.00 1.80 4.66 4.19 35.06
HDDH049 253.65 254.40 0.75 1.03 0.91 8.80
HDDH050 39.00 40.00 1.00 3.67 3.37 22.21
HDDH050 54.00 62.00 8.00 1.70 1.35 26.30
including 60.00 62.00 2.00 4.81 3.78 77.32
HDDH050 71.00 72.00 1.00 1.26 1.02 17.99
HDDH050 81.00 88.00 7.00 1.51 0.62 66.54
including 86.10 88.00 1.90 3.42 1.54 141.23
(*) Reported interval length are down hole widths and not true widths.
(**) Gold equivalent (“AuEq”) is calculated using metal prices of US$ 1,800/oz for Au and US$ 24/oz for Ag. The
equation used is: AuEq g/t = Au g/t + (Ag g/t ÷ 75).
AuEq assumes Au recovery of 90%. The limited metallurgical studies by Fredonia (selective Bottle rolls from Main
Veins material) have indicated high (>90%) recovery of gold in oxide material. The Cerro Vanguardia mine to the east
of EDM with similar mineralization reports recoveries in the high 90% for Au.
The Phase III drilling has confirmed the presence of extensive intersections of mineralized material with high grade veins,
extending known mineralization to the east, west and at depth.
The Fredonia geological team believes that a new phase of drilling is warranted, to further extend the known mineralization
zone, include down-dip and along strike delineation of the mineralization and affiliated host rocks discovered during the Phases
I to III programs, and to test additional targets at Herradura Hill.
Historical drill holes intercepts not previously reported from Herradura Hill, and including Fredonia Mining Phase I
and II are shown below:
Hole ID From To Length (*) Au Eq g/t (**) Au g/t Ag g/t
HDDH001 124.00 140.00 16.00 1.01 0.61 29.70
HDDH007 83.00 92.00 9.00 1.34 1.17 12.70
HDDH011 126.50 128.10 1.60 5.54 5.49 3.80
HDDH011 147.70 199.00 51.30 1.72 1.11 45.80
including 174.00 177.00 3.00 4.53 3.29 93.10
HDDH013 68.00 163.70 95.70 1.04 0.90 10.30
including 68.00 77.00 9.00 8.12 7.43 51.70
and 149.70 180.00 30.30 1.16 0.72 32.90
HDDH015 139.00 153.50 14.50 1.13 0.86 20.50
HDDH022 150.00 168.00 18.00 1.36 1.16 14.70
HDDH023 109.80 110.50 0.70 10.20 9.26 70.40
HDDH027 216.00 229.00 13.00 2.50 1.38 83.70
HDDH031 161.00 198.00 37.00 1.39 1.04 26.10
HDDH034 84.00 84.50 0.50 6.17 5.90 19.91
HDDH035 99.70 101.00 1.30 2.11 1.93 13.62
HDDH035 120.00 120.50 0.50 3.78 3.28 37.59
HDDH036 77.70 78.20 0.50 3.81 3.55 19.81
HDDH036 180.60 181.20 0.60 2.33 1.65 50.99
HDDH036 220.40 221.50 1.10 3.39 2.52 65.37
HDDH036 224.00 225.00 1.00 5.47 4.89 43.40
including 224.00 224.50 0.50 9.55 8.54 75.61
HDDH037 162.00 176.50 14.50 1.08 0.91 12.69
including 163.10 164.20 1.10 2.35 1.91 33.16
and 166.00 166.50 0.50 8.45 7.57 66.19
and 176.00 176.50 0.50 7.05 6.26 59.39
HDDH037 189.00 190.00 1.00 2.02 1.73 21.59
HDDH038 34.00 55.00 21.00 1.01 0.91 7.43
including 42.00 42.60 0.60 4.72 4.53 14.53
and 51.50 54.00 2.50 3.02 2.91 8.42
including 101.00 102.00 1.00 2.30 2.10 14.70
and 114.00 114.50 0.50 7.36 6.49 65.29
and 116.00 116.64 0.64 13.74 12.83 68.39
and 123.60 124.15 0.55 2.24 2.12 9.04
including 234.50 235.10 0.60 6.42 5.85 42.88
and 244.80 246.50 1.70 5.42 4.35 79.95
and 248.00 249.30 1.30 2.99 2.93 4.76
HDDH038 251.00 251.50 0.50 4.94 4.87 5.33
HDDH039 107.50 108.00 0.50 1.59 1.52 5.61
HDDH040 157.00 157.50 0.50 4.29 3.68 45.49
HDDH040 168.80 191.00 22.20 1.78 1.58 14.72
including 174.00 175.00 1.00 9.83 9.53 22.39
and 177.30 178.00 0.70 9.26 8.75 38.14
and 180.00 180.65 0.65 5.72 4.69 77.30
and 184.00 187.00 3.00 3.86 3.43 32.60
HDDH040 198.00 200.00 2.00 3.92 2.72 90.36
including 209.00 210.00 1.00 3.06 2.96 7.16
including 226.00 227.00 1.00 2.56 2.44 8.66
HDDH040 255.00 262.00 7.00 1.91 1.88 2.57
including 255.50 255.90 0.40 26.74 26.47 20.16
HDDH041 59.90 60.80 0.90 1.64 1.52 9.01
HDDH041 98.50 99.20 0.70 3.29 3.01 20.70
including 110.00 110.60 0.60 2.72 2.57 11.11
(*) Reported interval length are down hole widths and not true widths.
(**) Gold equivalent (“AuEq”) is calculated using metal prices of US$ 1,800/oz for Au and US$ 24/oz for Ag. The
equation used is: AuEq g/t = Au g/t + (Ag g/t ÷ 75).
AuEq assumes Au recovery of 90%. The limited metallurgical studies by Fredonia (selective Bottle rolls from Main
Veins material) have indicated high (>90%) recovery of gold in oxide material. The Cerro Vanguardia mine to the east
of EDM with similar mineralization reports recoveries in the high 90% for Au.
Quality Assurance/Quality Control:
All core samples were submitted to the principal Alex Stewart Laboratories in San Julián city for preparation, and in Mendoza
city for the analysis. All samples were analyzed for Au and Ag by fire assay/ AA finish 50 g, plus a 39-element ICP-AR finish.
Fredonia followed industry standard procedures for the work with a quality assurance/quality control (QA/QC) program. Blanks
and reference material of High grade/ Low grade Gold and High grade/ Low grade Silver standards were included with all
sample shipments to the principal laboratory. Field duplicates were made from Coarse Reject. Fredonia detected no significant
QA/QC issues during review of the data.
Mr. Fernando Ganem, Professional Geoscientist, VP - Exploration of the Company, is a qualified person (“ QP”) as defined by
Canadian National Instrument 43-101. Mr. Ganem visited the property and has read and approved the technical contents of this
release.
Data Verification
Mr. Ganem has previous experience with the EDM property and the historical QA/QC procedures undertaken for the
preparation of previous results and has previously conducted the verification activities on drilling and sampling results
described in Fredonia’s technical report entitled “Technical Report on the El Dorado-Monserrat Property in Santa Cruz
Province, Argentina” dated February 15th, 2021 (the “EDM Technical Report ”).
Mr. Ganem was physically present to inspect and take verification samples from drill core in the most recent drilling campaign,
and verify drill results against data-base information provided by management to ensure the assays results presented are
those in the database. Digital ‘original’ final assay reports (certificates) were provided to the QP at the time of disclosure for
verification.
About Fredonia
Fredonia indirectly owns a 100% interest in certain license areas (totaling approximately 18,300 ha.) (Collectively, the
“Project”), all within the Deseado Massif geological region in the Province of Santa Cruz, Argentina, including the following
principal areas: El Aguila, approx. 9,100ha, Petrificados, approx. 3,000ha, and the flagship, advanced El Dorado-Monserrat
property covering approx. 6,200ha located close to AngloGold Ashanti’s Cerro Vanguardia mine, subject to a 1.5% net smelter
return royalty on the EDM project, and a 0.5% net profits interest on Winki II, El Aguila I, El Aguila II and Hornia (ex
Petrificados).
For further information: Please visit the Company website www.fredoniamanagement.com or contact: Omar Salas, Chief
Financial Officer, Direct: +1-416-846-7807, Email: [email protected].
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation
relating to the Company and the EDM project, including statements regarding the prospectivity of the EDM project for gold and
silver mineralization, including the potential for metal recoveries from any mineral processing activity, the potential for a mineral
resource estimate at the Project, and the Company’s future exploration plans. Words such as “might”, “will”, “should”,
“anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology are used to identify forward looking
statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions
and analysis made by the Company considering its experience, current conditions and its expectations of future developments
as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve
known and unknown risks, uncertainties and other factors, including, without limitation, the factors described in the
Company’s filing statement dated June 22, 2021 available on SEDAR at www.sedar.com under the heading “Risk Factors” that
may cause actual results to differ materially from those expressed or implied in the forward-looking statements and information
and accordingly, readers should not place undue reliance on such statements and information and the Company can give no
assurance that they will prove to be correct. The statements in this press release are made as of the date of this release. The
Company undertakes no obligation to update forward-looking statement made herein, or comment on analyses, expectations
or statements made by third parties in respect of the Company or its securities, other than as required by law.