More News !!EXMIN-Yale JV Acquires Two Historic Mines Within the Urique Project and Plans to Drill in Early 2007
CCNMATTHEWS
EXMIN Resources Inc.
October 26, 2006 - 09:52:22 AM
EXMIN-Yale JV Acquires Two Historic Mines Within the Urique Project and Plans
to Drill in Early 2007
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - EXMIN Resources
Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to announce that it has finalized an
option agreement to acquire a land package consisting of 3 concessions that
cover approximately 103 hectares in the Cerro Colorado area of its Urique
Project, currently under option to Yale Resources (TSX VENTURE:YLL). An
agreement was also signed that gives EXMIN the right to acquire 2 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 press release
of August 2, 2006), and are mostly surrounded by ground 100% controlled by the
joint venture.
Exploration work previously carried out on the properties by EXMIN identified
gold and silver mineralization related to a moderate 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 press releases of May 17,
2006 and August 2, 2006). The two historic mine workings are separated by
about 2 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 metric ton
(g/t).
Karl Boltz, President and CEO 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 US $425,000 (plus applicable 15%
value added tax), for 100% of the rights to three concessions, subject to a 1%
to 1.5% royalty, under the following terms:
1. Payment of US $35,000 on signing (paid);
2. Payments totaling US $90,000 in the first three years, consisting of US
$30,000 at the first anniversary and four subsequent payments of US $15,000 at
six month intervals (US $15,000 paid in advance);
3. Payment of US $300,000 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% applies if a resource of less than
1 million ounces of gold is defined at the end of the option agreement, while
a royalty of 1.5% applies if the gold resource is greater than 1 million
ounces. The royalty can be purchased for US $250,000 in the first case, or for
US $425,000 dollars 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 (see table below). At Mina Guadalupe,
two separate exposures spaced about 50 metres apart yielded 11.55 g/t gold and
44.3 g/t silver over 2.6 metres and 3.56 g/t gold and 58.3 g/t silver over 2.0
metres, respectively. At the El Vergel mine, samples have yielded as much as
2.23 g/t gold and 150.0 g/t silver over 3.0 metres and 8.00 g/t gold and 41.3
g/t silver over 1.2 metres. These mines are separated by about 2 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 (see table below), as well as anomalous indicator elements
antimony, mercury and arsenic.
The JV 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 underway. EXMIN is the
operator of the exploration program.
QUALITY ASSURANCE
All of EXMIN's samples were prepared and analyzed by ALS Chemex at their labs
in Mexico and Vancouver and generally consisted of 1-3 kg of material. Gold
analyses were performed by 30 gram fire assay with an AA finish; one sample
with more than 10 g/t gold (overlimit) was analyzed using gravimetric methods.
Silver was analyzed as part of a multi-element ICP package using an aqua regia
digestion; one sample with more than 100 g/t 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 and
El Vergel prospects, Urique Project(i)
-------------------------------------
Sample Width Au Ag
m g/t g/t
-------------------------------------
-------------------------------------
Mina Guadalupe
--------------
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
El Vergel
---------
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 NR 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
-------------------------------------
Assays from altered rock along structural
zone and nearby areas, Urique project(i)
-------------------------------------
Sample Width Au Ag
m g/t 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 greater 15.5
than 0.01
588 3.0 0.03 0.7
589 5.0 0.01 1.3
590 5.0 greater 0.9
than 0.005
591 5.0 greater 1.0
than 0.005
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 greater 1.3
than 0.005
603 2.0 0.01 3.5
-------------------------------------
(i) Some sample data were previously included in the
news release of May 17, 2006
Note that 1 gram per metric tonne (g/t) is equivalent to
1ppm.
About EXMIN
EXMIN Resources Inc. is currently focused on the exploration and development
of precious metal properties of significant merit in the Sierra Madre gold
belt of Northwestern Mexico.
Note: EXMIN Resources Inc. (EXMIN) has taken all reasonable care in producing
and publishing information contained in this news release. Material in this
news release may still contain technical inaccuracies, omissions or
typographical errors, for which EXMIN assumes no responsibility. This news
release may include certain "forward-looking statements" including but not
limited to comments regarding predictions and projections. All statements,
other than statements of historical fact, included in this news release,
including, without limitation, statements regarding potential mineralization,
exploration results, and future plans and objectives of EXMIN, are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in documents filed
from time to time with the regulatory authorities.
FOR FURTHER INFORMATION PLEASE CONTACT:
EXMIN Resources Inc. Karl J. Boltz President & CEO 1-888-244-0304
EXMIN Resources Inc. Investor Relations 1-888-244-0304 Email:
info@exmin.com Website: www.exmin.com
The TSX Venture Exchange has not reviewed this release and does not accept
responsibility for the adequacy or accuracy of this news release.