SPOKANE, WASHINGTON -- (Marketwire) -- 06/29/09 -- Matthew Russell, President of Azteca Gold Corp. (the "Company") (TSX VENTURE: AZG) wishes to announce the final closing of its current financing, as well as update progress on exploration activities at the Two Mile Project in the Silver Valley of Idaho. All references to currency in this press release are in Canadian funds, except where noted otherwise.
Closing of Current Financing
Azteca Gold has closed its present financing prior to the first release of preliminary assays for material mineralization below 9900 FT in hole DDH-006. Although it is a prudent policy to verify results with check assays before releasing assay results, because of the length of time the check assay labs are taking, these preliminary results in the next two days prior to verification, with verification results to be released when available.
A total of $836,700 or 2,091,750 units were sold, at a price of $.40 per unit, which consists of one common share and one purchase warrant. Each warrant entitles the holder to purchase one common share for $.75 for a period of 2 years from the date of closing. Insiders were restricted from participating in this financing. Funds from this private placement will be used for drilling and assaying expenses at the Company's 50% owned Two Mile Project as well as for general corporate purposes. Securities issued on closing will be restricted from trading until October 30, 2009.
Exploration Update and Release of Assays
DDH-006 is currently at a depth of 11,173 FT. "We believe we are at least 100 FT into our deep target, that being a calcic carbonate unit located deep in the Pritchard," said Matt Russell. Pictures of the core have been posted to the Gallery on the website located at www.azteca-au.com.
"We received preliminary assays over the weekend, and these may substantiate the extent of the calcic carbonates encountered. We are evaluating these assays now, and will release the results in the next day or two. Our goal was to locate the primary source of the gangue minerals of the Silver Valley, which various USGS publications describe as ankerite (calcic iron/magnesium carbonates) and siderite (iron carbonates), in the belief that silver-lead-zinc massive sulfides, including significant copper and gold, may be found within them."
"We have suffered a mechanical failure that has temporarily halted drilling progress. The upper reamer, located approximately 12 FT behind the drill bit, has failed. The drill rod has sheared off at that spot, leaving 12 FT of rod at the bottom of the hole," said Mr. Russell.
