Ana Prospect


The discovery of significant gold mineralisation at the Ana Prospect in 2012 is the highlight of the recent drilling program completed at the Latin Gold Project, Brazil. The Ana Prospect is located 50km southeast of the city of Peixoto de Azevedo in northern Mato Grosso state, Brazil. IGS began working the Ana prospect area, following up on historic drilling of drill hole ANA001, which targeted gold up to 1g/t in rock chip sampling, and intersected extensive alteration and anomalous base metal values. The alteration and mineralisation at ANA001 is interpreted to be part of a much larger district scale metallogenic zonation requiring additional work to vector towards more significant gold-copper porphyry style mineralisation.

Highlights

Ana Prospect diamond drill results received for four of eight holes, best gold intercepts include:
     o   21m at 5.9g/t gold from 45m drill depth, including 8m at 13.6 g/t Au – ANA008
     o   18m at 3.24g/t gold from 33m depth – ANA006
     o   6m at 5.18g/t gold and 0.68% copper from 36m – ANA007
Best copper intercepts include:
     o   9m @ 0.23% Cu from 51m drill depth – ANA008
     o   9m @ 0.24% Cu – ANA006
     o   6m at 5.18g/t gold and 0.68% copper from 36m – ANA007

Follow-up work in the area located extensive Garimpo (artisanal) workings targeting gold mineralization located approximately 2km to the west of ANA001. Surface sampling returned encouraging high grade gold results, multiple samples exceeding 5g/t gold including up to 110g/t gold on the northernmost quartz vein drilled on the Ana Prospect.  Since completion of drilling, surface rock chip results including 20.2g/t gold and 17.8g/t gold have been received from a newly identified vein system.  The rock chip results confirm locations selected for the highest priority drilling based on field mapping of mineralised structures.

The Ana prospect is hosted by rhyolites and fine grained sediments that form a relatively thin cover to the favourable Matupá suite granites. Cover rocks host iron oxide stockworks, propylitic alteration proximal to quartz, carbonate, and hematite veining in the area. In excess of 8 linear kilometres of placer gold workings drain the mapped area containing significant alteration and veining.

Drill hole ANA008 intersects 2 zones of mineralisation, first intersecting 18m at 3.24g/t Au, including 8m at 13.6g/t Au from 45m depth. Within the 18m at 3.24g/t Au interval, assay results also return an interval of 9m averaging 0.23% Cu at a 0.2% cut-off from 51m drill depth. The character of mineralisation and metal zonation matches the significant intercepts received for ANA006 and ANA007 highlighting mineralisation for over 100m of strike on the vein in the initial drill test, with results for hole ANA009, and additional 80m east of ANA008.

Drill hole ANA008 also intersects a second gold zone with 3m at 1.89g/t Au and no significant copper from 90m drill depth, indicating potential for a second parallel, east-west trending gold bearing structure less than 30m north of the drilled target.

Hole ANA007, drilled to the north, intersects 6m @ 5.18g/t Au from 36m drill depth. The gold intercept is located within a 9.5m thick vein bounded by sheared structures. The same gold interval also averages 0.68% copper, including 4m averaging 1% copper. Altered igneous wallrock below this intercept hosts (decreasing) narrow quartz stockworks. and strong potassic alteration with localised brecciation where ANA007 drills a large intersection of anomalous gold. Localized anomalous copper values are scattered throughout. Gold beyond the last >1g/t value averages 0.14g/t over the last 55.9m drilled, including 2.9m at 0.68g/t Au at the bottom of hole. The pervasive alteration and anomalous gold values indicate high fluid flow in a strong mineralising system, suggesting the mineralised intercepts may be proximal to more extensive porphyry style mineralisation.

Hole ANA006, drilled to the south, 40m along strike from hole ANA007, intersects 18m at 3.24g/t Au from 33m depth and averages 9m at 0.24% copper from 36m, where the drilling encounters a 5m quartz vein, and a second 6m wide vein zones separated by 1.3m of intensely altered granitic rock, again bounded by shears with relict coarse grain intrusion textures. On the down-hole side of the vein intercept, the lithology is complex with rock types alternating on sharp contacts between coarse-grained granitic to very fine grained intermediate to mafic compositions in strongly altered rocks with abundant brittle fracturing.

Hole ANA005 was drilled to the northwest targeting a narrow vein in a prospect pit that returned 9.7g/t Au in surface sampling. The drilling intersected three narrow veins with minor sulphide mineralisation and strong associated alteration haloes returning anomalous gold values (>0.1g/t Au) but no reportable intercepts exceeding 1g/t Au.

Each of the eight holes at Ana was sampled in its entirety and all cut ½ core samples have been submitted to SGS-Geosol laboratories in Cuiabá, Mato Grosso or Belo Horizonté, Minas Gerais depending on laboratory availability.

Ana Prospect rock chip results and diamond drill locations

Hole ID Easting Northing From
(m)
To
(m)
Interval
(m)
Au (g/t) Cu (percent)
ANA Prospect
ANA005 761557 8837665 No >1g/t Results
ANA006 761626 8837464 19.8 24 4.2 0.46 0.31%
ANA006 33 51 18.0 3.24 0.16%
including 33 42 9.0 3.35 0.24%
ANA006 60 60.45 0.45 3.17
ANA007 761661 8837411 36 42 6.0 5.18 0.68%
ANA007 66 67 1.0 0.11 0.23%
ANA008 761702 8837399 45 66 21 5.88 0.12%
including 50 58 8.0 13.6 0.15%
including 51 53 2.0 25.4 0.49%
including 58 60 2.0 1.88 0.41%
ANA008 90 93 3.0 1.89

Significant intercept table for Ana Prospect drill results >1g/t Au

TECHNICAL NOTES:

Samples assayed are ½ NQ2 diamond core cut at the Company’s core yard at Peixoto de Azevedo
Assay results SGS-Geosol Laboratory, Brazil, Fire Assay method. All assay numbers are reported as un-cut and all intercepts reported as drill thickness and are not to be interpreted as true thickness unless otherwise indicated.

Gold intersections are based on a 1.0 g/t gold lower cut-off, no upper-cut applied and maximum 3m internal dilution.
Copper intersections are based on a 0.2% Cu lower cut-off, no upper-cut applied and maximum 2m internal dilution

Ana drill hole 007, ½ core with assay results from 35.6 to 42.55m drilled

Competent person statement

The information in this report that relates to exploration results is based on information compiled by Mr Travis Schwertfeger.  Mr Schwertfeger is the Chief Executive Officer of International Goldfields Limited.  Mr Schwertfeger is a member of The Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Mr Schwertfeger consents to the inclusion in the report of the matters based on information in the form and context in which it appears.