ASX  Release  

08  May  2013      

Contact  

Mark  Papendieck    Managing  Director  mark@orinocogold.com    Suite  9,  5  Centro  Ave    Subiaco  WA  6008  

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Thick High Grade Silver Discovered at Cascavel

Outstanding Silver Assay of 40 oz/tonne over 17.6m

(21gpt Gold Equivalent) Significantly Expands Projects Potential

 • 1,263  gpt  Ag  (40  oz/t)  over  17.6m  from  a  depth  of  101m  down  hole.  • Strategically  located  between  two  previously  reported  gold  bearing  

horizons.  • Silver  bearing  horizon  visually  identified  in  all  holes  over  the  Cascavel  

area  of  1,600m  x  600m,  offering  potential  for  large  tonnages.  • Assays  are  awaited  for  a  further  21  holes.  • Useful  copper  and  tungsten  credits  recorded  in  the  first  hole.  

 Orinoco  Gold  Limited  (ASX:  OGX)   is  pleased  to  announce  that  extremely  high  grade   silver  has  been  intersected  over  very  significant  widths  at  the  Cascavel  Prospect   in   the   Company’s   70%   owned   Faina   Goldfields   Project   in   central  Brazil.      The   discovery   follows   a   review   of   the   zone   of   carbonate   alteration   between  the  high-­‐grade  gold-­‐bearing   zones  previously   targeted  by  drilling  at  Cascavel.  The   first   multi-­‐element   assay   of   this   zone   has   delivered   an   exceptional  intersection  of  17.6m  @   1,263gpt   Ag   from   101m  down-­‐hole   from   the   initial  hole.    This  result  significantly  enhances  the  potential  for  the  economic  development  of   a   high-­‐grade   precious  metal   mine,   producing   gold   and   silver   with   copper  credits.    

 Given  the  recognition  of  strong  geological  similarities  between  Orinoco’s  Faina  Goldfields   Project   and   Canada’s   prolific   multi-­‐commodity   Abitibi   greenstone  belt,  the  Company  undertook  poly-­‐metallic  assays  of  the  30m  thick  carbonate  alteration   zone   that   vertically   separates   the   two  gold  bearing   zones   targeted  by   the   previous   drilling.  While   assays   have   so   far   only   been   received   for   the  first   hole,   the   grade   and   width   are   of   such   significance   that   they   are   being  immediately  brought  to  the  attention  of  the  market.    The  17.6m  assay  from  hole  CDP-­‐021  returned  1,263  g/t  silver  (40.6  oz/t).  The  gold   equivalent   grade  of   the   intersection   is   21   gpt1.   The   zone   containing   the  high-­‐grade  silver  also  contains  copper  and  tungsten  (table  1).  

                                                                                                                 

1  Based  on  a  gold  price  of  AUD1435.01,  a  silver  price  of  AUD23.53  and  a  Ag:Au  ratio  of  60:1.  

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The   Company   is   proceeding   to   assay   the   same  mineralised   sequence   in   the   other   21   holes   that   had  previously  been  drilled  to  test  the  gold  zones  and  reached  the  depth  of  the  carbonate  zone.  As  with  the  two  units   that   host   the   high-­‐grade   gold  mineralisation   at   Cascavel,   drilling   has   shown   that   the   silver-­‐bearing  horizon   is  also  structurally  controlled  and   largely  geologically  continuous  along  strike   (1600m)  and  down  dip  (600m).  The  strike  of  Cascavel  remains  open  along  strike  and  down  dip.    While   the   6,000m   diamond   drilling   program   completed   earlier   this   year   at   Cascavel   was   designed  primarily   to   identify  structure  as  a  priority  over  grade  –  as   is  normal  with  nuggety  gold  deposits  –  the  existing  drilling   through   the   carbonate   zones  will   provide  valuable   information   regarding   the  grade  of  the  silver-­‐bearing  mineralisation.        Implications  for  Project  Advancement    The   Company   needs   to   assess   the   results   of   the   silver   assays   before   commencing   the   planned  exploration   decline   at   Cascavel   to   assess   the   gold   horizons.   Matters   under   review   will   include   the  dimension  of  the  project  in  terms  of  tonnages,  process  routes  and  product  mix.      The   scale  of   the  project   could  be   significantly   larger   if   it   incorporates  both  gold  and   silver  production  circuits,   although   still   with   the   potential   to   be   progressed   in   stages   if   this   is   determined   to   be   the  optimum  development  scenario.  

 Orinoco  Managing   Director  Mark   Papendieck,   said:   “It’s   always   nice   to   be  measuring   precious  metal  exploration   results   in  kilograms   rather   than  grams  –  but   there  are   several   very   important   implications  which  flow  from  the  discovery  of  high-­‐grade  silver  at  Cascavel.      “Firstly,  the  discovery  continues  to  validate  our  view  that  the  Faina  greenstone  belt  shares  many  of  the  geological   attributes   that  have  made   the  Abitibi   greenstone  belt   in  Canada  one  of   the   richest  mineral  provinces  in  the  world2.    “Secondly,  and  very  importantly,  the  location  of  the  high-­‐grade  silver  intersection  between  the  two  gold  zones  at  Cascavel  is  potentially  significant  for  the  economics  of  any  future  operation  at  Cascavel.  If  the  pending  assays  confirm  the  continuity  of  the  high-­‐grade  silver  horizon  between  the  gold  zones  then  we  will  have  a  large  mineralised  unit  incorporating  two  gold  zones  and  a  silver/copper  zone  that  is  likely  to  be  amenable  to  extraction  via  open  pit.        

     

-­‐ENDS-­‐    For  further  information,  please  contact:    Mark  Papendieck           Nicholas  Read  Managing  Director           Managing  Director  Orinoco  Gold  Limited         Read  Corporate  08  9463  3241           08  9388  1474  info@orinocogold.com         0419  929  046    

                                                                                                               2  170  million  ounces  of  gold,  35  billion  pounds  of  zinc,  15  billion  pounds  of  copper,  and  400  million  ounces  of  silver  and  significant  nickel  production.  

 

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 Competent   Person’s   Statement:   The   information   in   this   presentation   that   relates   to   Exploration  Results,  Mineral   Resources   or  Ore  Reserves  is  based  on  information  compiled  by  Dr  Klaus  Petersen  who  is  a  member  of  the  Australasian  Institute  of  Mining  and  Metallurgy  and  CREA.  Dr  Klaus  Petersen  is  an  employee  of  Orinoco  Gold  Limited  and  has  sufficient  experience,  which  is  relevant  to  the  style  of  mineralisation  and  type  of  deposits  under  consideration  and  to  the  activity  which  they  are  undertaking  to  qualify  as  a  Competent  Person  as  defined  in  the  2004  Edition  of  the  Australasian  Code  for  Reporting  of  Exploration  Results,  Mineral  Resources  and  Ore  Reserves.  Dr  Klaus  Petersen  consents  to  the  inclusion  in  this  report  of  the  matters  based  on  the  information  in  the  form  and  context  in  which  it  appears.

   

     

                                 

                                     

   

Figure  1.  Location  of  CDP-­‐021  at  Cascavel.    

 

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                                                               Table 1.  Drill Results from CDP-021.      

 Assay  Methods:  150#  Screen  Fire  Assay  (Au),  Inductively  Coupled  Plasma  Atomic  Emission  Spectrophotometry  (Ag,  Cu,  W)  

   

Figure 2. 3D Interpreted Geological Model of Cascavel with the inferred Carbonate zone (silver bearing horizon) highlighted in blue.

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Figure 4 & 5. Location of the Faina Goldfields Project and the Cascavel & Eliseo prospects.

 

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