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General Information – Angel Gold Corp.

General Information

By technical concept dated July 26, 2012 the Secretary of Mines of the Government of Antioquia has determined that an area of 2014 hectares of the 2063 hectares initially solicited by the Colombian subsidiary of Angel Gold Corp., Angel Gold S.A.S., has been found to be free of conflict with existing concessions and pre-existing claims. The acceptance by Angel Gold S.A.S. of the boundaries as determined by the legal study is the first step in perfecting a mineral concession contract over the area.
This solicited area lies immediately north of the concessions making up the Gramalote project (B2Gold/AngloGold joint venture) and is crossed by south-east trending faults similar to those believed to control the emplacement of mineralization at Gramalote. The Gramalote deposit is considered to be an intrusive-hosted structurally controlledstockwork gold silver deposit located wholly within the Antioquia Batholith. The area solicited by Angel Gold S.A.S. is almost wholly underlain by tonalite intrusives of the Antioquia Batholith, with gneiss and quartzite exposed only along the Quebrada Los Monos in the south. It is crossed in its northern and southern extremes by mapped south-east trending faults.
In April of 2012 B2Gold announced an updated resource estimate of 2.5 million ounces of gold in 97.1 million metrictonnes of material.
In order to assess the potential of the area before having to pay the canon fee for this large solicitude, Angel Gold S.A.S. initiated a program of stream-sediment sampling over the solicited area. Twenty eight samples were collected within the area on the first pass sampling effort, and twenty six samples were taken in a second phase. All stream sediment samples were analyzed by BLEG (Bulk Leach cyanide- Extractable Gold) analysis. Twenty eight of the 54 stream-sediment samples contained more than 30 ppb Au, a value obtained in streams below known gold mineralization in Quinchia and considered to be anomalous in this type of sampling. The highest gold analysis was 410 ppb Au in the first phase of sampling and 983 ppb Au in the second phase.
Most of the streams with anomalous gold values and the strongest anomalous values were clustered in the southern 1/3 of the concession, along the Quebrada Los Monos and its tributaries. Five streams in the north of the solicited area were anomalous for gold. Small miners were producing gold from northsouth trending quartz veins and saprolitein an area immediately north of the solicitude boundary at the time of the initial sampling. Four rock samples were taken from the workings of which the most significant was 35.38 gpt Au and 37.8 gpt Ag in a panel sample of saprolite.