Antofagasta Gold Commences Work Program at the Pampas El Penon Property-Northern Chile

TORONTO, ONTARIO -- (Marketwired) -- 07/03/13 -- Antofagasta Gold Inc. ("Antofagasta" or the "Company") (TSX VENTURE: AN) has commenced an exploration program on its recently optioned Pampas El Penon property. The Property consists of seven separate blocks surrounding the El Penon Gold Mine operated by Yamana Gold, including the land package immediately to the west and north of the Pampa Augusta Victoria discovery veins (See Figure 1 below). Over 20 epithermal veins, with a cumulative strike length in excess of 10 km, have been identified on surface, some of which have been explored by trenching and/or reverse circulation drilling by previous owners.

The work program will focus on the claims located immediately north and west and north of Yamana Gold's Pampa Augusta Victoria project. These claim blocks contain several north south striking silver - gold bearing epithermal quartz veins identified on surface. The majority of these claims have not been fully characterized or drilled, while those with limited reverse circulation drilling only targeted near surface mineralization. In order to constrain the extent of the strike length and potentially mineralized areas within the veins, the Company plans to carry out additional mapping and sampling. In addition, geophysical surveys will be conducted over the prospective areas, consisting primarily of ground magnetic and CSAMT surveys. Once results of the surface exploration program have been received, the Company intends to drill test the higher priority targets within the claim blocks.

In order to maximize the efficiency and minimize the costs, an exploration camp is being installed on one of the claims blocks that will serve as a base for the up-coming exploration program.

Vernon Arseneau, Vice President of Exploration, commented "We are excited to start work on the Pampas El Penon claim group. The quantity of north south trending epithermal veins within such close proximity and parallel to a major gold producing mine is encouraging. The fact that it has seen very limited exploration only adds to this potential. With limited near surface exploration, previous owners managed to identify several prospective veins and structures with highly anomalous Ag-Au values that remain open along strike and at depth."


The work program will focus on three areas:

Augusta Victoria West: the area hosts at least 13 north-south striking mineralized structures with anomalous Ag-Au values that have been identified on the claims immediately west of Yamana's Pampa Augusta Victoria developments stage mine. These structures commonly extend for more than 500m along strike and have seen very little exploration to date except for limited surface sampling and shallow drilling down to 50m vertical. Sampling returned anomalous values of trace elements in trenches along with Ag values up to 16.9 grams per tonne.

Pan de Azucar: the area is located 11km north west of Yamana's El Penon mine and contains an extensive NNW striking, five to ten meters wide quartz bearing structure that has been delineated by trenching and mapping for over 600m. The structure is anomalous in Ag (up to 13 grams per tonne) and Au (up to 1.2 grams per tonne) and remains open along strike. Only eight short reverse circulation holes were drilled on this structure, intersecting epithermal veins over 30 metres wide with anomalous gold and silver values.

Agusta Victoria North: This claim block lies immediately north of Yamana's property and on strike with the mineralized veins currently being developed. The area has not seen any previous exploration. There is little to no outcrop on the claims and the initial program will concentrate on ground geophysics aimed at identifying structures under cover. A program of exploratory reverse circulation drilling will follow once the geophysical surveys have been completed.

The exploration potential of the Pampas El Penon property is considered excellent and the fact that it has seen no deep exploration only adds to this potential. With limited near surface exploration, previous owners managed to identify several prospective veins and structures with highly anomalous Ag-Au values that remain open along strike and at depth.

Readers are cautioned that the assay and sampling results summarized above are historical in nature and should not be relied upon.

The technical and scientific aspects of this news release have been reviewed and approved by Mr. Vernon Arseneau, P.Geo, who has been designated as a qualified person pursuant to under NI 43-101. As the Vice President of Exploration of the Company, Mr. Arseneau is not considered independent.


On behalf of the Board of Directors of Antofagasta Gold Inc.

William Randall
President, and CEO



Cautionary Note Regarding Forward-Looking Information:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements (express or implied) relating to sampling results and/or the impact of such results with respect to the timing, cost and/or amount of future exploration and development of any property, the timing, cost and/or amount of future production, the future price of gold or other minerals, the successful implementation of development plans at any of the Company's properties and/or the future financial or operating performance of Antofagasta, its properties and/or its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. It should also be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.

Figure 1 - Location of Pampas El Penon Property - Northern Chile
http://media3.marketwire.com/docs/884523ANi.jpg

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



Contacts:

Antofagasta Gold Inc.
William Randall, President and CEO
(416) 309-2697
wrandall@antofagastagold.com