News Release !!EXMIN Acquires District Scale Project in the Guanajuato Region of Central, Mexico
CCNMATTHEWS
EXMIN Resources Inc.
December 6, 2006 - 09:01:57 AM
EXMIN Acquires District Scale Project in the Guanajuato Region of Central,
Mexico
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - EXMIN Resources
Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to announce that it has entered into
an agreement to acquire approximately 10,500 hectares in the northern
extension of the Guanjajuato district of central Mexico. Guanajuato is a world
class silver and gold district with production that has been estimated at 1 to
1.5 billion ounces of silver and around 5 million ounces of gold. Mining and
exploration in the district has recently been reactivated in the last few
years by Canadian junior mining companies such as Great Panther Resources and
Gammon Lake Resources. The land package acquired by EXMIN covers a major
portion of a series of vein systems that measure 12 kilometers along strike by
3 kilometers and contains several past producing mines. The concessions lie in
the state of Jalisco near the boundary with the state of Guanajuato.
Dr. Craig Gibson, Executive Vice President of Exploration for EXMIN, stated,
"There are not many opportunities to pick up a property of this caliber under
a reasonable deal such as this one. Guanajuato is a world class mining
district that has been producing for 450 years. This property is at the
northern end of the district in the same package of host rocks and is possibly
the extension of the vein systems that have been mined at Guanajuato."
EXPLORATION TARGET
The main focus of exploration is a system of epithermal veins that generally
strike northwest and appear to be the northern extension of the veins exposed
at Guanajuato. Approximately 25 linear kilometers of veins have been
delineated within the optioned land package. The veins are dominantly hosted
by a granitic pluton and a sequence of Mesozoic volcanosedimentary rocks that
form the basement in the region. Five major vein systems transect the district
and have been exploited in several places by old mines and prospects. Small
volcanogenic massive sulfide deposits have also been discovered in the
Mesozoic rocks in the region but are not presently a prime target for
exploration.
PREVIOUS EXPLORATION AND MINING ACTIVITY
The region covered by the project was originally mined by the Spanish during
the Colonial period. Jesuits mined at the Horcon mine for 200 years until the
mid 1700's and constructed several kilometers of workings and a shaft at least
200 meters deep. The workings were described as unorganized, as the veins were
mined as they were discovered and no attempt to quantify resources had been
done. An evaluation of the property done in 1932 for an American company
reported that high grade mineralization occurred in multiple faces and
pillars. It is unknown if the property was purchased or whether any work was
done at that time.
The Consejo de Recursos Minerales (now the Servicio Geologico Mexicano, or
SGM) has studied the district and produced several reports, mainly in the
1960's and the 1980's. These reports are mainly descriptive or academic in
nature.
A major international mining company explored part of the district in 2004 and
2005. The owner of the concessions has provided information from this
exploration program to EXMIN. Detailed geologic maps were completed and more
than 600 surface samples were taken. Twelve diamond drill holes totaling 3570
meters were also completed. This exploration program tested the veins at depth
from easily accessible areas, but generally did not test the areas of past
mining and the immediate extensions along strike.
HORCON MINE
The Horcon mine exploited part of the vein systems in the northwestern part of
the district. Three principal vein sets have been recognized. A set of
northwest trending veins, dipping steeply to the southwest, extend for many
kilometers along strike and cut across the entire district. A second set of
northwest to northerly trending veins dip at low angles, 20-30 degrees, to the
southwest in the vicinity of the Horcon mine. These low angle veins were
exploited by the Spaniards and are generally relatively narrow and intersect
the high angle vein set, locally forming pods of high grade ore. The third set
of veins is transverse to the others, striking northeasterly, with steep dips,
and comprises relatively little of the mapped structures.
The main presently accessible working at the mine is the Horcon adit, which
cuts across several of the veins and also intersects several stopes that
exploited the low angle veins. Sample data from the walls of old workings and
from pillars, provided to EXMIN by the concession owner, yielded up to 67
grams per metric ton (g/t) gold along with important concentrations of silver,
lead and zinc from veins that vary from 10 centimetres to 2 metres in width
(see table below). EXMIN geologists also collected samples to verify the
values (see table below). Only limited modern exploration, consisting of
geologic mapping and sampling, has occurred in this area. A few drill holes
were completed in 2005 but only tested the veins at depth below the old
workings, and no holes have been drilled in the main area of past mining
activity or directly along strike.
THE DEAL
EXMIN has agreed to make staged payments over the five year term of the option
agreement for a total purchase price of US $1.5 million (plus applicable 15%
value added tax) for 100% of the rights to the concessions, subject to a net
smelter return royalty (NSR) as described below, under the following terms:
1. Payment of US $25,000 on signing and payment of back taxes for 2006 of
about US $5,000 (paid);
2. Payments totaling US $275,000 over three years;
3. Subsequent payments totaling US $1.2 million in the 4th and 5th years.
The properties are subject to a 1.5% net smelter return royalty capped at US$
500,000 and that can be purchased for this amount at any time.
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.
QUALITY ASSURANCE
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. Other
elements were analyzed as part of a multi-element ICP package using an aqua
regia digestion. The historical samples from previous exploration were also
analyzed by ALS Chemex by fire assay with an AA finish and a multielement ICP
package, but sample weights are not reported.
Dr. Craig Gibson, PhD., Executive Vice President of Exploration is the
authorized professional geologist for EXMIN and the direct manager of all
technical programs and information.
Sample data from previous exploration at the Horcon mine
---------------------------------------------------------------------------
Width Au Ag Cu Pb Zn
Sample meters g/t g/t % % %
---------------------------------------------------------------------------
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Raton Veins
-----------
24377 0.70 2.69 40 0.23 0.23 greater than
5.00
24378 0.65 5.68 53 0.22 1.29 greater than
5.00
24379 0.10 6.94 118 0.27 2.98 greater than
5.00
24380 1.00 4.41 73 0.20 0.86 3.26
24381 0.90 1.24 42 0.06 0.71 1.50
24382 0.50 3.47 74 0.25 2.75 3.95
24383 0.60 0.91 37 0.18 0.64 0.60
24384 0.50 3.72 140 0.36 3.66 greater than
5.00
24385 0.30 7.59 136 0.22 4.84 greater than
5.00
24386 0.40 2.60 53 0.25 1.19 1.92
24387 1.10 2.65 120 0.07 0.45 0.54
24388 0.85 16.70 106 0.40 8.80 greater than
5.00
San Guillermo Vein
------------------
25655 0.90 28.90 192 0.37 3.25 greater than
5.00
25656 0.60 42.00 148 0.26 2.73 greater than
5.00
25657 0.50 6.81 44 0.24 2.21 3.95
25658 0.30 9.80 280 0.38 2.41 2.54
25659 0.55 7.12 41 0.16 2.06 2.62
25660 0.25 6.31 56 0.26 3.43 greater than
5.00
25661 0.25 13.70 110 0.42 5.15 greater than
5.00
25662 0.35 43.10 168 0.40 4.20 greater than
5.00
25663 0.55 2.94 26 0.15 0.96 2.68
25664 0.35 1.49 25 0.09 3.09 4.49
25665 0.30 57.10 98 0.36 2.96 greater than
5.00
25666 0.50 26.40 66 0.30 2.42 greater than
5.00
25667 0.45 8.22 103 0.46 4.04 greater than
5.00
25668 0.50 13.90 80 0.29 2.36 4.16
25669 0.38 6.09 56 0.28 2.28 3.32
25670 0.30 3.95 30 0.13 1.43 2.33
25671 0.50 1.13 33 0.13 3.54 3.20
25672 0.60 3.58 16 0.07 0.99 0.88
25673 0.20 16.35 87 0.24 7.14 greater than
5.00
25674 0.35 4.75 25 0.08 0.96 1.52
25675 0.50 16.65 75 0.37 6.58 greater than
5.00
La Galvana Vein
---------------
25686 0.30 15.70 855 0.36 22.20 3.94
25687 0.30 3.83 56 0.19 0.85 1.34
25688 0.30 5.98 98 0.49 9.71 greater than
5.00
25689 0.30 0.43 12 0.03 0.48 0.54
25690 0.50 0.46 19 0.02 0.58 0.59
25691 0.70 67.90 104 0.08 1.52 1.13
25692 0.55 17.75 138 0.14 2.26 0.61
25693 0.35 0.69 19 0.03 0.41 0.78
25695 0.40 2.06 66 0.07 0.54 1.13
Unamed Vein
-----------
25645 0.30 6.53 55 0.19 6.29 greater than
5.00
25646 0.60 2.77 12 0.06 0.49 1.51
25647 1.10 0.47 4 0.02 0.20 0.38
25648 0.35 8.28 98 0.13 3.88 4.82
Diamantillo Vein
----------------
25643 0.75 0.62 2 0.01 0.29 0.20
25644 1.20 1.28 25 0.09 1.07 0.37
25697 2.00 2.78 20 0.09 0.67 0.93
25698 1.30 2.43 42 0.10 2.29 2.28
25699 1.80 0.09 7 0.02 0.07 0.08
Other veins
-----------
25641 1.30 0.50 19 0.07 0.51 0.70
25649 0.30 2.98 25 0.06 1.99 0.92
25650 0.40 2.02 93 0.10 1.71 1.03
25651 0.35 0.71 6 0.03 0.49 0.65
25652 0.30 2.21 256 0.03 0.13 0.12
25653 0.50 1.75 55 0.34 1.58 4.92
25654 0.20 0.05 20 0.23 1.04 1.00
25676 1.00 7.07 29 0.17 1.81 4.05
25677 0.30 40.80 134 0.54 2.06 greater than
5.00
25678 0.30 1.33 26 0.12 1.62 1.93
25679 0.25 0.99 43 0.09 3.42 greater than
5.00
25680 0.25 2.23 37 0.09 1.47 2.48
25681 0.30 0.08 1 0.01 0.04 0.16
25682 0.20 0.06 4 0.04 0.09 0.13
25683 0.40 0.43 14 0.00 0.05 0.09
---------------------------------------------------------------------------
EXMIN sample data from the Horcon mine
---------------------------------------------------------------------------
Width Au Ag Cu Pb Zn
Sample meters g/t g/t % % %
---------------------------------------------------------------------------
---------------------------------------------------------------------------
JM-Hor-26 0.3 less than less than -- -- --
0.005 0.2
JM-Hor-27 0.3 0.123 25.4 0.02 0.03 0.08
JM-Hor-28 0.4 0.028 4.8 0.04 0.04 0.07
JM-Hor-29 1.0 less than 459.0 0.01 0.04 0.15
0.005
JM-Hor-30 1.6 0.786 7.4 0.02 0.44 0.26
JM-Hor-31 1.0 5.000 66.9 0.07 0.87 0.54
RHOR-27 0.4 0.598 25.3 0.06 0.27 0.65
RHOR-28 0.5 0.897 33.2 0.04 0.25 0.23
RHOR-29 0.3 3.740 48.5 0.25 2.72 2.96
RHOR-30 0.4 0.194 4.2 0.01 0.23 0.20
RHOR-31 1.7 1.570 66.4 0.57 3.53 5.46
693 0.3 5.200 63.9 0.36 4.20 7.43
694 0.3 0.163 7.3 0.01 0.09 0.19
695 0.3 0.207 19.7 0.09 0.31 0.41
696 0.4 0.475 40.8 0.07 3.02 4.56
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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.