Minaurum Gold Inc. ("Minaurum") is pleased to announce that it has entered into an Option Agreement with Ocean Park Ventures Inc. ("OCP"). The Agreement grants OCP the right to acquire a 51% interest in the Adelita Copper-Gold-Silver project located in Mexico.
OCP is a TSX Venture listed company with a focus on copper and gold projects in the Americas. The OCP Agreement allows Minaurum to focus on its gold and silver projects including the Aurena Gold Project which is currently be drill tested. The Phase 1 program at Aurena includes ten to fifteen holes. Approximately 30% of the rock chip samples in the area being drilled assayed more than 1 gram per tonne (g/t) Au; the highest gold value was 6.46 g/t. Similarly, 30% of the soil samples assayed greater than 0.5 g/t Au; the highest Au value in soils was 5.77 g/t Au (See Press Release dated October 19, 2010).
The Adelita Property straddles the border of Sonora and Sinaloa States in Mexico, and lies just 6 kilometres east of Pan American Silver's open pit Alamo Dorado silver mine. The geologic setting of the Property is similar to that of Alamo Dorado (proven and probable reserves of 10 Mt of 95 g/t silver and 0.33 g/t gold) and Frontera Copper's Piedras Verdes Porphyry Copper deposit (proven and probable reserves of 194 Mt of 0.36% copper), located 60 kilometres to the northwest.
Minaurum's 2010 drill program confirmed a high grade copper-gold-silver skarn target. Highlights include diamond drill holes CGDD-10-001, which returned 16.15 metres of 1.97% copper, 0.84 g/t gold and 73 g/t silver, and CGDD-10-002 which returned 47.64 metres of 0.98% copper, 0.46 g/t gold and 46 g/t silver. The skarn mineralization occurs near the edge of a 500 metre by 2,000 metre undrilled copper soil geochemical anomaly. Regional sampling and mapping of altered intrusive rocks suggests a possible buried porphyry system over a 3 square kilometre area.
Terms of the Proposed Transaction
Pursuant to the Agreement, Minaurum will grant an option to earn a 51% interest ("Interest") in the Property by incurring cumulative Expenditures of US$1,425,000, OCP issuing common shares to Minaurum, paying Minaurum the cash amounts as provided in the table below and assuming all underlying property payments.
|On or Before||Cumulative
|December 31, 2011||US$475,000||150,000||US$50,000|
|December 31, 2012||US$950,000||250,000||US$100,000|
Underlying share payments payable to Minera Coplau will be continued to be made using Minaurum shares. Minaurum will receive an identical number of OCP shares in compensation for every share issued.
To earn an additional 14% interest (total 65% interest), OCP must spend an additional $2,375,000 in exploration expenditures, fund and complete a pre-feasibility study by December 15, 2015 and complete the following share and cash payments to Minaurum;
|On or Before||Cumulative
|December 31, 2013||US$950,000||250,000||US$150,000|
|December 31, 2014||US$1,425,000||200,000|
To earn an additional 10% interest (total 75% interest) OCP must complete and fund, prior to December 31, 2018, a feasibility study on the Property. OCP must also issue an additional 500,000 common shares to Minaurum.
OCP will be Operator of the exploration program at Adelita. Once the 51% or 65% Option is exercised, OCP and Minaurum will enter into a joint venture to further develop the Property, with each party contributing to their pro rata portion of the approved exploration program. If, at any time, a party's interest in the joint venture is reduced to below ten percent, the other party may elect to acquire such party's remaining interest for a price of $1.5 million, payable in cash or common shares of the acquiring party.
Minaurum Gold is a gold and silver explorer focusing on gold-dominant metals deposits in Mexico. The Company is currently advancing a portfolio of projects including the Aurena gold-skarn project.
Qualified Person: Mr. Stephen R Maynard, M.S., C.P.G., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised the preparation of the technical information in this release.
ON BEHALF OF THE BOARD
"Darrell A. Rader"
Darrell A. Rader
President and CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
1500 - 409 Granville St.
Vancouver, BC V6C 1T2
Telephone 778 330-0994
Forward Looking Statement: Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control, including, but not exclusively, statements regarding potential mineralization, exploration results, completion of work program and studies, and future plans and objectives of the Company. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production.