Announcement • Jul 24
Altamira Gold Corp. Expands Mineralized Porphyry System At Maria Bonita Gold Deposit, Cajueiro District, Brazil Altamira Gold Corp. reported assay results from additional exploration drilling immediately to the north-west of the existing Maria Bonita gold deposit. Highlights: Two drill holes completed to the north-west and outside of the Maria Bonita gold resource have intersected wide zones of mineralized and altered rocks in both porphyry intrusive and adjacent volcanic tuff wall rocks. Drill hole MBA039 intersected 117m @ 0.4g/t gold from surface in predominantly volcanic tuffs. Drill hole MBA038 returned 74m @ 0.3g/t gold from 74m downhole associated with hydrothermal quartz veining, hosted in both porphyry and adjacent volcanic tuff wall rock. Both intercepts lie outside the current mineral resource and confirm potential to extend the mineral resource to the north, west and at depth. CAJUEIRO DISTRICT The Cajueiro district is located approximately 75km NW of the town of Alta Floresta in the state of Mato Grosso (Figure 1) in central western Brazil. The project is easily accessible by road, lies on open farmland and has grid power and a local water supply. Cajueiro is the most advanced of the key projects that Altamira controls in the region. The Cajueiro district consists of two independently estimated gold mineral resources at Cajueiro Central and Maria Bonita, plus a series of eight additional untested exploration targets within a radius of 8km of Cajueiro Central. The Cajueiro Central area has a current open pit resource1 of 5.66Mt @ 1.02 g/t gold containing 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold (515,000 oz) in the Inferred Resource category (estimated using a cut-off grade of 0.25g/t Au and a gold price of USD 1,500/oz). The Maria Bonita open-pit resource consists of Indicated Resources of 24.19Mt @ 0.46g/t gold (357,800oz) and Inferred Resources of 25.64Mt @ 0.44g/t gold (362,400oz)2. These resources were calculated using a 0.2 g/t gold cut-off grade and a gold price of USD 2,780/oz. These resources include near-surface saprolite Indicated Resources of 2.02Mt @ 0.59g/t gold (38,000oz) and Inferred Resources of 0.68Mt @ 0.40g/t gold (8,700oz). The Maria Bonita porphyry gold deposit forms part of a district-scale portfolio of prospects that are interpreted as having a similar geological origin. The Cajueiro area is characterized by a 15km stretch of former alluvial gold workings along the Teles Pires river. The source of some of this alluvial gold is related to a pronounced east-west corridor of gold anomalies in soils and rock chips and a set of sub-cropping intrusions extending east-west over 8km, implying the presence of a long-standing and deep-seated reactivated crustal structure. MBA038 and MBA039, the third and fourth drill holes in our follow up drilling program aimed at extending the Maria Bonita mineral resource to the west, confirm that Maria Bonita extends beyond the limits of the existing NI 43-101 mineral resource and optimised pit. Drilling is ongoing. In the northern part of the area recently drill tested, volcanic tuffs form the majority of the country rock. These tuffs are hydrothermally altered and are the hosts to local quartz veins and stockworks. These exo-intrusive vein zones, together with the early phases of the porphyry complex, represent the principal gold targets. The later porphyry pulses and the volcanic tuff wall rock, without hydrothermal veining, do not contain significant gold. Core logging indicates that gold distribution within the intervals outlined in Table 1 for all holes is generally related to the frequency of hydrothermal quartz veining. Vein densities of 2-4 veinlets per metre of core are common within the porphyry and up to 8 veins per metre in discrete sections of the wall rock tuffs. Quartz veins range from millimetric to 70 mm in true thickness. Unlike the main early porphyry at Maria Bonita, the western early porphyry intercepts contain pyrite (up to 1% by volume) plus magnetite. Alteration is mainly potassic in character, similar to the Maria Bonita early porphyry. Sulphide content appears to increase westwards which may signal an opportunity to map the mineralization through IP chargeability surveys. The main Maria Bonita porphyry shows a resistivity anomaly but no discernible chargeability due to its very low sulphide content. Gold grades within the mineralized sections of the porphyry have bulk grades around 0.5g/t Au with peak values of 1-2g/t Au (i.e. the intervals are consistently mineralized with no apparent nugget effect). In the sections of drill holes MBA038 and 039 comprising later phases of porphyry, gold values are low, indicating waning mineralization as the hydrothermal system evolved. In the adjoining wall rock tuffs (MBA038), quartz veining is found in discrete zones with higher average gold values than those in the porphyry. The 74m interval from 74m downhole is mineralized throughout, with a peak one-metre sample value of 1.64g/t Au. The notable higher values in the veined tuff zones at 110m and 130m may point to a potential earlier and better mineralized phase of porphyry located nearby but off-hole. New Risk • Jun 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Canadian stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Earnings have declined by 0.3% per year over the past 5 years. Shareholders have been substantially diluted in the past year (40% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Market cap is less than US$100m (CA$56.4m market cap, or US$39.7m). 
