Samco Gold Limited announced that it has made significant progress at its Corina project where the Cerro Cubilete prospect is now ready for preliminary drill testing. Together with earlier results, further chip sampling of the Cerro Cubilete prospect has yielded a total of 116 rock chip samples of float and outcrop, of which half the samples are above a cut-off grade of 55 g/t Ag and average approximately 460 g/t Ag. There is scope for down-dip continuity of mineralization at Cerro Cubilete both as manto-like bodies on the easterly-dipping contact between brecciated ignimbrite and well-stratified tuff, and as steeply- dipping bodies on an inferred fault between these two units.

A c.1,650m diamond drill test program will be drilled at Cerro Cubilete on three WNW-oriented sections across the outcropping mineralization. Results of this initial program, to be completed this quarter, will determine ongoing exploration. The company's intention to carry out geological mapping, additional sampling, hand-dug trenching, and a ground magnetic survey at its Cerro Cubilete silver prospect on the 5,000 hectare Corina Project in Santa Cruz province, Argentina.

This work has now been completed. As a result, the company has a better understanding of the geological controls to the mineralization, and the prospect is now ready to be drill tested. Cerro Cubilete lies within the Corina project (comprising the Corina, Corina 1 and Mercia tenements) held by Samco Gold, adjoining the Cerro Moro project owned by Yamana Gold.

To date, Au and Ag results have been received for 292 float and outcrop samples from the Corina and Mercia tenements. Analyses for 38 other elements, including pathfinders, have been received for 213 of these. There are currently 116 rock chip samples of float and outcrop which correspond to the Cerro Cubilete prospect.

These samples were collected to define the extent of the mineralization, and therefore cannot be regarded as representing the average grade of the zone. However, it is encouraging that half the samples are above a cut-off grade of 55 g/t Ag and average approximately 460 g/t Ag. For a Ag:Au equivalence factor of 55:1, the average of all Cerro Cubilete samples is 4.5 g/t Au equivalent, and half of them average 8.6 g/t Au equivalent.

In November and December, 2012, consulting geologist N.J. Callan was contracted to carry out geological mapping at 1:5000 scale within the area of the existing ground magnetic survey. This mapping, covering approximately 10.5 km2, has defined the volcanic sequence and predominant geological structures in the area mapped. The Cerro Cubilete mineralization occurs in a NNE-trending zone conspicuous for the development of earthy hematite.

The zone is 300m long and 75m wide at its northern end, and tapers towards the south. It is almost orthogonal to WNW-trending faults which appear to form the northern and southern limits of the mineralization and which also form fault boundaries between contrasting volcanic units. Mineralization of similar style to Cerro Cubilete has not been publicly reported at the adjoining Cerro Moro property to the south.

The La Negra zone of the former Mirasol Resources Joaquin property, is an example of a silver deposit combining stratiform manto-like components and a higher-grade, steeply-dipping feeder zone, with mineralization in the form of stockwork veinlets and breccias in both these elements. There is scope for down-dip continuity of mineralization at Cerro Cubilete both as manto-like bodies on the easterly-dipping contact between brecciated ignimbrite and well-stratified tuff, and as steeply-dipping bodies on an inferred fault between these two units. The company will aim to test both these possibilities with a core-drilling program in the first quarter of 2013.

Holes will be drilled on three WNW-oriented sections across the outcropping mineralization (three holes on each of three sections spaced 50-60m apart across the zone) for a total of approximately 1650m. Results of this initial program will determine ongoing exploration.