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Gold Blossoming in Colombia

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Cliffmont Resources options 100% of San Jorge

2012-05-28 08:42 ET - News Release

 

Mr. Jeff Tindale reports

CLIFFMONT SIGNS AGREEMENT FOR SAN JORGE MINING PROPERTY, COLOMBIA

Cliffmont Resources Ltd. has signed an option agreement whereby Cliffmont may acquire a 100-per-cent interest in the San Jorge gold property located in the department of Huila, Colombia. San Jorge is a past-producing gold property located within the company's 2,623-hectare flagship San Luis project.

San Jorge has been one of the most significant areas of past-producing small-scale gold mining within the San Luis district. The historical results from the San Jorge property indicate significant untested potential and represent an immediate priority for drilling. The company's drill program, which is due to commence before the end of May, will focus on several of these past-producing mines.

Jeff Tindale, president and chief executive officer, states: "We are very pleased to be able to consolidate this key area within our property. The historical gold values at San Jorge are amongst some of the highest propertywide. The San Jorge property consists of two exploitation titles, which give the company the flexibility for the potential of near-term small-scale production."

About San Jorge

The San Jorge property (78 hectares) is located on the southwest portion of the company's San Luis project in Huila, Colombia. The project area has power, water and road access. Mining on the main structure at San Jorge was stopped in late 2011, after over 20 years of exploitation, due to a recent series of slides which have collapsed tunnel access to most of the underground workings. This mining took place between 1,872 metres and 1,925 metres. It is significant to note, at the San Luis project mineralization occurs between 1,400 metres and 2,100 metres, indicating a strong potential for additional mineralization at San Jorge.

The old underground workings at San Jorge extend over a distance of approximately 350 metres along the Chiquila fault and the mineralization on surface extends approximately three kilometres. In 1997, TVX Mineria Ltda. sampled two drifts. The principal workings are located in the south drift where 59 samples were collected over a distance of 71.72 metres. The weighted averages for both sampling programs were:

 

• Vein: 71.72 metres samples averaged 324.16 grams per tonne gold and 85.0 grams per tonne silver over a 0.17-metre width;
  • Vein and wallrock combined: 71.72 metres samples averaged 39.09 grams per tonne gold and 11.66 grams per tonne silver over a width of 1.52 metres.

   

  In the north drift, 28 samples were collected over a distance of 45.04 metres.

   

  • Vein: 45.04 metres samples averaged 7.91 grams per tonne gold and 1.97 grams per tonne silver over a 0.38-metre width;
    • Vein and wallrock combined: 45.04 metres samples averaged 1.66 grams per tonne gold and 0.56 gram per tonne silver over a width of 1.66 metres.

     

    Cliffmont has not verified the accuracy of data from historical exploration work. However, the work carried out by previous operators TVX Minera Ltda. appears to have been completed following the best practices at the time.

    The company plans to drill test the depth extent of the gold mineralization in the north and south drifts commencing later this month. The company has secured the key surface land rights for the access to the San Jorge property, including the past-producing mine areas.

    Mapping, sampling and geophysics continue at San Luis project in preparation for the upcoming drill program.

    "Cliffmont has completed due diligence on many Colombian mining properties over the past several years, and management's conclusions are that moving forward with more advanced exploration on multiple past-producing mines at the San Luis property represents a significant opportunity for our shareholders," stated Mr. Tindale.

    Acquisition terms

    Cliffmont will pay $800,000 in staged payments, together with 1.5 million Cliffmont shares and a 1.5-per-cent NSR, to acquire an option to purchase the property, to an arm's-length party which previously acquired the option. In order to exercise the option, Cliffmont must pay $200,000 to the titleholder. The agreement remains subject to the approval of the TSX Venture Exchange.

    Dr. Alfredo Parra, a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release. Dr. Parra is a consultant to the company and is a member of the Mining and Metallurgical Society of America with special expertise in mining.

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