Ranchero Gold Provides Update on Santa Daniela Drill Program
910-800 West Pender Street, Vancouver, B.C. V6C 2V6
TSXV:RNCH
Ranchero Gold Provides Update on Santa Daniela Drill Program
• Current drill program focused on expansion of known gold mineralization at Maíz Azul
and initial testing of two highly prospective targets
• Diamond core drilling commenced on October 27, 2021
• To date 360 meters have been completed in two drill holes.
• A 13 hole, 3000-meter program Phase 1 drill program planned.
Vancouver, British Columbia, November 3, 2021 -- Ranchero Gold Corp. (formerly, Melior
Resources Inc.) (TSXV:RNCH) (the “Company”) is pleased to provide an update of its current drill
program at its 100%-owned Santa Daniela project located in Sonora, Mexico. The Santa Daniela
project consists of a large 22,000-hectare concession that located in the heart of the Sierra Madre
Occidental (SMO) gold belt situated in close proximity to a number of currently operating gold
mines.
Diamond drilling is underway. The drill rig arrived on site on October 25 and commenced drilling
on October 27. To date , 360 meters of diamond core drilling has been completed in two drill
holes.
The Sierra Madre Occidental Gold Belt
Over the last 20 years , a significant new gold belt has emerged in the SMO. While there has
historically been small-scale gold production, it is only in the past 15 years that large-scale mining
has begun. The region is dominated by Alamos Gold’s Mulatos mining complex and Agnico Eagle’s
La India and Pinos Altos mining complexes. These three mines produced approximately 390,000
ounces gold and 2.3 million ounces of silver in 2020. Combined proven and probable gold
reserves are 2.5 million ounces. (Source: Alamos Gold and Agnico Eagle Websites) The Santa
Daniela concessions are directly adjacent to the Mulatos mine complex (Figure 1).
The SMO is a regionally extensive Tertiary volcanic field, comprised of two distinct volcanic
sequences, an older andesiti c and dacitic series, and a younger, pyroclastic dominated rhyolitic
series. The Upper Series overlies the Lower Series with erosional disconformity and comprises a
sequence dominated by stratified volcanic ash beds. Most significant metal occurrences,
including Ranchero’s prospects in the SMO, are hosted by rocks of the Lower Series.
Figure 1. Location map showing Ranchero’s concessions (red) and the location of the Alamos
Gold’s Mulatos and Agnico Eagle’s La India and Pinos Altos mining complexes.
The Maíz Azul Prospect
The most advanced project in the Santa Daniela concessions is the Maíz Azul prospect. It lies
approximately 3.5 km southeast of Alamos Gold’s San Carlos and El Victor deposits - part of the
Mulatos gold complex. It is contained within the Lower Series volcanic rocks which also host gold
mineralization at Mulatos. Historic drilling encountered gold mineralization in multiple drill holes
including 37.0 meters averaging 1.56 g Au/t (DDH MA-18-03).
Field work conducted by Ranchero in 2020 consisted of mapping, geochemical sampling and
alteration studies. As a result, Ranchero geologists have identified three primary targets for drill
testing known as La Co lmena, La Cascada and X -Structure. These targets have been defined by
three principal factors: (i) structural trends (veins/veinlets, faults); (ii) geochemical sampling and
(iii) alteration mapping. These factors appear to define a classic low -sulfidation, epithermal ,
precious-metal system.
The primary structural trend is west -northwest and the three targets, parallel to each other,
follow this orientation (Figure 2). A secondary northeast trend is also prominent and may have
an important control on mineralization.
Geochemical sampling has encountered numerous samples contain ing gold at surface
(particularly the La Colmena and La Cascada targets). Independent samples of outcrop exposures
of the La Colmena zone returned values between 0.22 to 6.27 g Au/t.
Alteration mapping (Figure 3) with the aid of spectral analysis shows con centric halos typical of
a low-sulphidation gold deposit. This is characterized by an inner core of silica /clay surrounded
by a halo of propylitic alteration (chlorite-epidote-calcite). Outlying this alteration are remnants
of argillic alteration characterized by the presence of illite/smectite clays and destruction of rock
textures.
The current drill program is planned to test the three targets. Thirteen diamond drill holes will be
completed as shown in Figure 2. The program is designed first, to confirm and expand upon the
historical drilling at La Colmena. The program will also provide an initial test of the La Cascada
zone which has the largest surface expression of the three targets. Finally, one drill hole will
provide an initial test of the X Structure.
The Maíz Azul prospect covers just a small portion of the Company’s 22,000 -hectare concession
block. Reconnaissance efforts have yielded additional targets for further field investigations.
Corporate Update
Ranchero announces that it has engaged the Independent Trading Group (“ ITG”) to provide
market-making services. ITG is a member of IIROC, CIPF, the Toronto Stock Exchange and
Canadian Securities Exchange, and is based out of Toronto, Ontario.
Ranchero entered a market making services a greement with ITG pursuant to which Ranchero
engaged ITG to provide market -making services with the objective of maintaining a reasonable
market and improving the liquidity of Ranchero’s common shares. Ranchero retained ITG for an
initial term of three mon ths, with automatic renewal of one -month terms thereafter until
terminated by either party with 30 days’ notice. In consideration for the services, Ranchero will
pay ITG C$10,000 per month, plus applicable taxes, during the term of the agreement. ITG will
not receive any securities of Ranchero as compensation.
ITG is an arm’s length party to Ranchero. ITG does not currently have any interest in Ranchero or
the securities of Ranchero, but ITG may acquire securities of Ranchero in connection with the
market-making services. The funds to be used for the market-making services will be provided by
Figure 2. Maíz Azul Geology and Current Drill Program.
Figure 3. Hydrothermal alteration map (showing location of historic drill holes)
ITG in accordance with the policies of the TSX Venture Exchange (“ TSXV”) and applicable
securities laws. The engagement of ITG is subject to the approval of the TSXV.
Qualified Person
Scientific and technical information in this news release has been reviewed a nd approved by
William Pincus, CPG, who is a "qualified person" as defined by NI 43-101.
About Ranchero Gold
Ranchero Gold is a gold exploration and development company currently focused on its 100% -
owned Santa Daniela project located in Sonora, Mexico. The Santa Daniela project consist of a
large land package of 22,000 hectares within Mexico’s Sierra Madre Occidental – a newly
emerging gold-belt. Maíz Azul is the Company’s most advanced prospect. Drilling is currently on-
going.
On behalf of the board of directors of the Company:
William Pincus
President, Chief Executive Officer and Director
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.
Cautionary Note Regarding Forward Looking Statements
This news release contains certain forward -looking statements. Any statements that express or
involve discussions with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not always, using words or
phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not
anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results “
may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of
historical fact and may be “forward-looking statements”. Forward-looking statements contained
in this news release include, but are not limited to, the final acceptance of the TSXV to the
Transaction.
Forward-looking statements are subject to a variety of risks and uncertainties which could cause
actual events or results to materi ally differ from those reflected in the forward -looking
statements. These risks and uncertainties include but are not limited to: risks related to
regulatory approval, including the approval of the TSXV. There can be no assurance that forward-
looking statement will prove to be accurate, and actual results and future events could differ
materially from those anticipate in such statements. The Company undertakes no obligation to
update forward -looking statements if circumstances or management’s estimates or o pinions
should change except as required by applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements.