(via Thenewswire.ca)
Toronto, Canada and
Lima, Peru / TheNewswire / July 25,
2016 –Alturas Minerals Corp (TSXV:ALT) ("Alturas")
is pleased to announce that
Alturas has entered
into a non-binding Letter of Intent
(the “LOI”) with Compañía Minera Milpo S.A.A.
(“Milpo”), a member of the
Brazilian international Votorantim Group, to option the
Alturas’
100% owned,
4,129 hectare,
zinc-gold-copper-rare earth element project
Huajoto property
mining concessions, located 22
kilometers northwest of
the historical mining
town of Huancavelica in
Central Peru.
Geologically,
the Huajoto Volcanic Complex (HVC) is a
sill and flow complex of felsic to
intermediate composition cutting the Mesozoic Pucara limestone dominated basement. Small diatreme breccia pipes attest to explosive felsic eruptive activity and
a pyroclastic phase. Faulting is complex and intense, probably reflecting
strong extension in
the roof of a
sub-circular, sub-volcanic/plutonic complex,
which measures around 10 x
10 kilometers in
dimension.
Surface
and drilling results report of
two different styles of mineralization
on the Huajoto Property: high-sulfidation epithermal
gold mineralization
(La Virgen target) that may represent
a mineralized lithocap
overlying a
porphyry-related copper-gold mineralization center and zinc-skarn and -replacement
(Cathy-Pablo
target) in the peripheral volcanic and sedimentary
sequence.
Miguel
Cardozo, President
and CEO of Alturas
commented: “We are pleased to have concluded a successful negotiation with Milpo,
and to have the opportunity of continuing our exploration efforts in the Huajoto property, which has been partially
drilled by Alturas
with very encouraging zinc-rare earths mineralized intercepts”.
Under the terms of the LOI
dated on June 28th, 2016, Alturas and Milpo intend to
execute a Definitive
Agreement (“the
Agreement”) whereby Alturas grants Milpo:
1. A conditional 3-year
option (the
“Option”) to
acquire 80% of the Huajoto concessions for a total payment
of US$2 million
(the “Acquisition Price”). The Option
period will start as soon as Milpo obtains
all authorizations, permits and licenses required to initiate its exploration activities.
2. A 5-year assignment of
the concessions (the
“Assignment”),
for Milpo to
execute its exploration activities. The
Assignment starts on the date of execution of
the Agreement (the “Effective Date”).
In addition, in
order to exercise
the Option and acquire a
participating interests (“Interest”)
for 80% of the
Huajoto concessions, Milpo should
advance the project and
prepare within the
3-year period
corresponding to the Option a
43-101-compliant Preliminary Economic Assessment (Scoping Study) as defined by the
Canadian
Securities Administration.
During the
Assignment period,
Milpo will make annual
cash payments of US$200,000
each out of which Alturas
agrees to cover Alturas´s commitments
with previous owners of the properties and
also to pay for the properties´ annual fees, the
balance being
considered as payments in advance
of the Acquisition Price.
Upon
Milpo having completed its requirements to
earn an 80% interest in
the Huajoto Project, the
parties shall
form a customary 80:20 joint venture vehicle with the parties contributing
pro-rata to all expenses and investments needed for the
development of the project.
About the
Huajoto Zinc-Gold-Copper-Rare Earth Element
project
The
Huajoto Project
is situated 22 kilometers northwest of
the historical mining town
of Huancavelica in
Central Peru. The project is comprised of eight contiguous mineral concessions totaling
3,700 hectares.
The property includes
over
7.0 x 5.0
kilometers of strong hydrothermal alteration centered on
a Late Tertiary felsic
eruptive center. The system is
the northernmost of
several
alteration centers
distributed
along a well-defined, NNW-SSE
striking, +20
kilometer long belt of
skarn, polymetallic and
epithermal deposits.
Geologically, the
Huajoto Volcanic Complex (HVC)
is a sill
and flow complex
of felsic
to intermediate
composition cutting the Mesozoic
Pucara limestone
dominated basement.
Small diatreme breccia
pipes attest to
explosive felsic eruptive
activity. Airfall tuffs appear to represent
a synchronous or
possibly later pyroclastic
phase. Faulting is
complex and intense,
probably reflecting strong extension in
the roof of a sub-circular, sub-volcanic/plutonic
complex, which measures around
10 x 10 kilometers in dimension.
There are surface
and drilling reports of
two different styles of mineralization on the Huajoto
Property: high -sulfidation epithermal gold mineralization (La Virgen target) that may represent
a mineralized lithocap overlying a
porphyry- related mineralization center and zinc-skarn and -replacement
(Cathy-Pablo
target) in the peripheral
volcanic and sedimentary sequence.
Alturas initiated
an intensive surface exploration program in
August 2007 followed
up by a first
phase
drilling campaign
of these
targets comprising 2,501 meters that was executed in
the third quarter
of 2008.
Best results
reported were
from drill hole JOT-08-01, which intersected a near
surface 106.5 meter
thick polymetallic mineralized
package between 11.5 and 118.0 meters averaged 1.64%
zinc and 0.09% copper.
This package includes an
upper section of 48.5
meters assaying 2.24% zinc and
0.13% copper from 11.5 to 60.0
meters and a lower
sec tion of
17.0 meters
assaying 3.26% zinc and 0.18% copper from 101.0 to
118.0 meters. Within
these two
sections, higher grade
intervals of
5.80 meters assaying
3.48% zinc and 0.18% copper, and 4.40 meters assaying 7.28% zinc and 0.37% copper, were encountered. Alturas has recognized
that strongly anomalous rare
earth element (REE)
values exist within
the alkaline volcanic rocks hosting the zinc mineralization.
For
further information on the Huajoto
project, please refer to Alturas’ 43-101
report at www.sedar.com prepared
by
Dr.
Paul
Pearson in
2010 as Alturas's
designated Qualified Person
for the supervision of
exploration
of the project.
About Milpo
Compañía
Minera Milpo S.A.A. is part
of Votorantim Metais,
the corporation’s metals and mining division of
Votorantim
Group, a solid global industrial conglomerate which has
more than 90 years of
history
and presence in key economic sectors,
in more than 20 countries. Milpo is one
producer of zinc,
copper, silver and lead in
Peru, developing and
operating three mining units: Cerro Lindo, El Porvenir and
Atacocha.
About Alturas Minerals
Alturas is
a Canadian corporation, and
is the indirect
parent of the
Peruvian company,
Alturas
Minerals S.A. (“Alturas Peru”) and of
the Chilean company, Alturas
Chile Limitada (“Alturas
Chile”). Alturas
Peru has been exploring various mineral projects in Peru
since January 2004 and has
three mineral exploration projects in drilling
-stage, including the Utupara, Sombrero and
Huajoto projects. Alturas
also entered into a transfer agreement
on its Pampa Colorada
property in northern
Peru with Origen Group
S.A.C. but maintains royalty
rights and a claw back
clause on 60 -100% of
the mining rights
under certain conditions (see press release dated January
5th, 2012). In 20 14, Alturas interrupted its
exploration
activities in Chile and is focused in maintaining
its exploration projects in Peru.
For
further information, please visit the Company's
website at www.alturasminerals.com or contact Alturas at:
Phone:
+ 51-1- 476-1410 (Lima, Peru)
+ 1-416-363-4900 (Toronto,
Canada)
Email: investor@alturasminerals.com
The
TSX Venture Exchange and the Bolsa de
Valores de Lima do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Language and Forward Looking Statements
This press release may contain “forward-looking statements”, which are subject to various risks and uncertainties that could cause
actual results and future events
to differ
materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about
the Company’s busin
ess are more fully discussed in the Company’s disclosure documents
filed from time to time with the
Canadian securities authorities.
Copyright (c) 2016 TheNewswire - All rights reserved.