Francisco expands oxides at Marlin

Vancouver — The final nine holes of a third round of drilling by Francisco Gold (FGX-V) have expanded the oxide gold mineralization on the Marlin gold-silver prospect in Western Guatemala.

Three of the holes were collared 100 metres southwest of the Main zone.

Hole 48 cut 36 metres grading 1.58 grams gold and 39.6 grams silver per tonne from 61 metres down-hole.

Collared some 25 metres to the west, hole 47 hit 71 metres grading 3.41grams gold and 41.2 grams silver from 31 metres down-hole. Included in this interval was a higher-grade section running 29.9 grams gold and 234.5 grams silver over 6 metres.

Stepping out another 50 metres to the west, hole 52 returned 143 metres averaging 0.8 gram gold and 11.7 grams silver from 21 metres down-hole.

The results indicate that the mineralization is getting thicker to the southwest under younger volcanic cover. The remaining six holes were all collared in the Main zone. Highlights include:

• Hole 37 — 20 metres grading 2.38 grams gold and 22.5 grams silver from 23 metres down-hole;
• Hole 45 — 15 metres grading 1.99 grams gold and 21.8 grams silver from 41 metres down-hole;
• Hole 46 — 15 metres grading 0.7 gram gold and 6.2 grams silver from 55 metres down-hole;
• Hole 49 — 27 metres grading 0.94 gram gold and 10.4 grams silver from 31 metres down-hole;
• Hole 50 — 35 metres grading 1.07 grams gold and 4.2 grams silver from 27 metres down-hole; and
• Hole 51 — 10 metres grading 0.93 gram gold and 7.2 grams silver from 26 metres down-hole.

Francisco completed 15 holes (1,429 metres) on the Marlin Main zone during the first bout of drilling. The holes were drilled beneath a portion of high-grade mineralization outlined by previous trenching and under post-mineral volcanic ash cover on the zone’s eastern extension.

Drilling and surface trenching have identified a near-surface, oxidized horizon of mineralization over a 550-by-300-metre area with an average true thickness of 25-30 metres. The horizon dips gently to the south at 20-30.

Marlin is underlain by a series of Tertiary-aged felsic volcanic, sub- volcanic and dyke rocks, which are exposed within an erosional window of a younger, Quaternary-aged ash-flow blanket. The area of interest extends eastward from the Los Cochis zone, past the Main zone to the Don Tello showing.

Francisco has sent a number of samples for metallurgical and mineralogical studies. Earlier work indicated leach recoveries of over 90% for gold and 85% for silver.

Marlin is part of a package of properties originally held by Montana Gold, a privately owned Canadian company. Since it began exploration work in Guatemala in 1996, Montana has staked more than 6,000 sq. km of mineral concessions along a major structural trend in the country’s western region.

Francisco has agreed to acquire Montana by issuing an initial 650,000 shares upon closing. If 1.5 million oz. gold-equivalent ounces are defined (proven and probable), it will issue up to 1.4 million more shares.