Exmin and Yale add to their deal
Exmin Resources finalizes Urique option deal with Yale
2006-10-26 11:05 ET - News Release
Mr. Karl Boltz reports
EXMIN-YALE JV ACQUIRES TWO HISTORIC MINES WITHIN THE URIQUE PROJECT AND PLANS TO DRILL IN EARLY 2007
Exmin Resources Inc. has finalized an option agreement to acquire a land package consisting of three concessions that cover approximately 103 hectares in the Cerro Colorado area of its Urique project, currently under option to Yale Resources. An agreement was also signed that gives Exmin the right to acquire two additional concessions covering 123 hectares, pending verification of title. The Cerro Colorado mineralized zone is located about 23 kilometres southeast and along the regional trend from the Monterde project being explored by Kimber Resources.
The five concessions are subject to the joint venture and are adjacent to the El Vergel concession that was previously optioned by Exmin (see Stockwatch, Aug. 2, 2006). The concessions are mostly surrounded by ground 100 per cent controlled by the joint venture.
Exploration work previously carried out on the properties by Exmin identified gold and silver mineralization related to a moderate-angle to low-angle structure that is exposed in old mine workings at El Vergel and at Mina Guadalupe, both of which are controlled by the joint venture (see Stockwatch, May 17, 2006, and Aug. 2, 2006). The two historic mine workings are separated by about two kilometres and the structural zone has been traced for about 2.5 kilometres in strike length. Rock chip samples taken at the project to date have yielded significant gold values in several exposures, with individual rock chip samples reporting gold values of as much as 15.3 grams per tonne.
Karl Boltz, president and chief executive officer of Exmin, stated: "We've been working on closing this deal for several months. Although Exmin has had a letter agreement on the properties, the signing of the formal option now allows us begin the full-scale exploration program. These are the highest priority targets on the project and have the most immediate exploration potential. We are planning to drill them in early 2007."
The deal
Exmin has agreed to make staged payments over the four-year term of the option agreement for a total purchase price of $425,000 (U.S.) (plus the applicable value-added tax of 15 per cent) for 100 per cent of the rights to three concessions, subject to a 1-per-cent to 1.5-per-cent royalty, under the following terms:
payment of $35,000 (U.S.) on signing (paid);
payments totalling $90,000 (U.S.) in the first three years, consisting of $30,000 (U.S.) at the first anniversary and four subsequent payments of $15,000 (U.S.) at six-month intervals ($15,000 (U.S.) paid in advance); and
payment of $300,000 (U.S.) in the last year of the deal.
The royalty depends on a total resource that may be defined according to the requirements of NI 43-101. A royalty of 1 per cent applies if a resource of less than one million ounces of gold is defined at the end of the option agreement while a royalty of 1.5 per cent applies if the gold resource is greater than one million ounces. The royalty can be purchased for $250,000 (U.S.) in the first case or for $425,000 (U.S.) in the second, with no remaining commitment to the prior owner.
Exmin will assume the normal requirements to keep the concessions in good standing with the Mexican mining secretariat. Exmin can terminate the contract unilaterally at any time, with no further obligations to the titleholder. There is no work commitment other than that required by Mexican law.
Exmin has also signed a letter agreement to enter a contract to acquire two additional concessions in the same area, pending verification of title ownership and status.
Targets
The primary exploration target on the property consists of a large-scale structural zone with quartz veining that has been explored by small workings in several areas. Sampling of two small mines that were previously developed along the structural zone, El Vergel and Mina Guadalupe, yielded interesting gold and silver values at the surface. At Mina Guadalupe, two separate exposures spaced about 50 metres apart yielded 11.55 grams per tonne gold and 44.3 grams per tonne silver over 2.6 metres, and 3.56 grams per tonne gold and 58.3 grams per tonne silver over 2.0 metres, respectively. At the El Vergel mine, samples have yielded as much as 2.23 grams per tonne gold and 150.0 grams per tonne silver over 3.0 metres, and 8.0 grams per tonne gold and 41.3 grams per tonne silver over 1.2 metres. These mines are separated by about two kilometres along strike and the area in between consists of strongly altered and brecciated volcanic rocks with abundant high-level chalcedonic silica as fine veinlets and local silicification. Sampling within the area of altered rock between the small mines and in nearby areas yielded generally anomalous gold and silver values, as well as anomalous indicator elements antimony, mercury and arsenic.
The joint venture has begun work on the previously optioned El Vergel concession at the northern end of the structural zone. The current exploration program consists of mapping and systematic sampling of the structural zone and associated alteration to define the geometry and controls on mineralization, and refine targets for a drill program planned for the first quarter of 2007. Sampling of trenches across the mineralized structures is currently under way. Exmin is the operator of the exploration program.
Quality assurance
All of Exmin's samples were prepared and analyzed by ALS Chemex at its labs in Mexico and Vancouver, and generally consisted of one to three kilograms of material. Gold analyses were performed by 30-gram fire assay with an AA finish. One sample with more than 10 grams per tonne gold (overlimit) was analyzed using gravimetric methods. Silver was analyzed as part of a multielement ICP package using an aqua regia digestion. One sample with more than 100 grams per tonne silver (overlimit) was analyzed by AA.
Dr. Craig Gibson, PhD, executive vice-president of exploration, is the authorized professional geologist for the company and the direct manager of all technical programs and information.
ASSAYS FROM THE MINA GUADALUPE PROSPECT (i)
Sample Width (m) Au (g/t) Ag (g/t)
108466 1.3 15.30 58.5
108467 1.3 7.79 30.1
108468 2.0 3.56 58.3
604 2.0 0.01 36.7
605 2.0 0.02 33.9
606 dump 0.01 0.5
607 dump 0.68 5.6
608 1.0 4.45 47.2
609 0.6 1.21 12.0
(i) Some sample data were previously
included in the news release in Stockwatch
on May 17, 2006.
ASSAYS FROM THE EL VERGEL PROSPECT (i)
Sample Width (m) Au (g/t) Ag (g/t)
108469 3.1 0.04 15.9
108470 3.0 2.23 150.0
108473 2.1 0.03 0.9
108474 3.3 0.07 3.7
108475 2.0 0.08 13.6
108476 2.3 0.03 4.6
108477 1.0 0.09 19.3
108478 0.8 2.17 26.4
108479 2.2 0.74 24.3
108480 1.6 0.21 18.6
581 - 1.57 24.5
582 1.0 0.26 45.7
583 1.2 8.00 41.3
584 1.0 0.33 26.5
585 1.2 0.86 41.7
586 0.8 0.17 24.9
587 0.2 0.87 39.3
(i) Some sample data were previously
included in the news release in Stockwatch
on May 17, 2006.
ASSAYS FROM ALTERED ROCK ALONG STRUCTURAL
ZONE AND NEARBY AREAS (i)
Sample Width (m) Au (g/t) Ag (g/t)
108457 1.0 0.12 32.5
108458 3.0 1.11 23.5
108459 3.0 1.50 35.6
108460 3.0 0.07 28.1
108461 3.0 0.09 32.4
108462 3.0 0.38 34.5
108463 3.0 0.27 60.1
108464 2.2 0.26 45.7
108465 4.5 0.13 44.8
108471 3.0 0.01 7.6
108472 4.0 0.01 9.1
108483 0.4 0.76 29.6
108484 0.7 1.69 42.8
108485 2.0 0.33 12.2
108486 2.5 0.20 5.3
108487 2.4 0.06 15.8
108488 4.5 0.09 41.9
108489 5.0 >0.01 15.5
588 3.0 0.03 0.7
589 5.0 0.01 1.3
590 5.0 >0.005 0.9
591 5.0 >0.005 1.0
592 5.0 0.01 2.9
593 5.0 0.02 6.4
594 5.0 0.02 41.6
595 3.0 0.08 38.6
596 3.0 3.51 45.7
597 3.0 0.23 38.1
598 3.0 0.19 56.0
599 1.0 2.22 51.9
600 grab 0.01 6.2
601 grab 4.10 33.8
602 1.0 >0.005 1.3
603 2.0 0.01 3.5
(i) Some sample data were previously
included in the news release in Stockwatch
on May 17, 2006.
Note that one gram per tonne is equivalent
to one part per million.
We seek Safe Harbor.