Pachamama options Fireweed interest to Shamrock
2010-03-03 16:32 ET - News Release
Mr. John Leask reports
AGREEMENT EXECUTED ON FIREWEED PROPERTY
Pachamama Resources Ltd. has entered into a binding letter agreement with Shamrock Enterprises Inc., whereby Shamrock may earn an initial 50-per-cent interest in the company's Fireweed silver-zinc-lead-gold property, located near Smithers, B.C. Terms of the letter agreement include $2.55-million in exploration expenditures, $650,000 in cash payments and one million shares of Shamrock over a four-year period. An initial $200,000 in exploration expenditures is a firm commitment which must be completed by February, 2011. Upon earning a 50-per-cent interest in the property, Shamrock may elect to earn an additional 10-per-cent interest (60-per-cent total) by producing a feasibility study within three years of the election. Shamrock can subsequently earn an additional 10-per-cent interest (70-per-cent total) by placing the property in commercial production within another three-year time frame.
Previous exploration on the property by the company and various optionees include soil geochemistry, magnetometer, 3-D induced polarization surveys plus 18,200 metres of drilling in 103 holes. The impetus for further work results from targets indicated by the most recent 3-D induced polarizaton surveys in an area, where mineralized float assaying 1,650 grams per tonnes silver and three grams per tonne gold, was previously discovered. Known mineralization at Fireweed consists predominantly of breccias, massive sulphides, disseminations of pyrite-pyrrhotite, sphalerite, galena, chalcopyrite and silver-sulphosalts hosted in coarse grained sandstones.
This news release has been reviewed by John M. Leask, PEng, president and chief executive officer of the company, and a qualified person as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects."
We seek Safe Harbor.
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