Latin American Minerals Inc. (” LAT”)( TSX VENTURE: LAT) is pleased to announce that it has actually gotten in into choice contracts to get a 70%interest in a gold project in the Paso Yobai gold district in the Asian Region of Eastern Paraguay.
Presently, the mining concessions that we have optioned are the only 2 mining concessions in Paraguay.
Minera Guaira: LAT has the exclusive alternative to acquire a 70%interest in Minera Guaira’s mining concession by making yearly escalating cash payment amounting to US$ 2.1 million over 3 years (plus providing 100,000 LAT common shares) and by using up US$500,000 on exploration throughout the very first year. On vesting of the 70%interest a Joint Venture will be formed with LAT as the operator. If any celebration’s JV interest decreases to 15%or less it will immediately convert to a 1%NSR. Presently, the government royalty on the mining concession includes a 5%NSR. Must the proposed mining law be passed and the government royalty eliminated, Minera Guaira’s 1%NSR will automatically increase to a 3%NSR.
Minera Guaira recommended that it is presently in small scale production. It extracts soil from a small open pit on the concession and provides it to a small plant which can process 40 tpd. Minera Guaira reports regular monthly production ranges of 500 g to 2,000 g, indicating that the average grade of the soil remains in the range of 0.4 to 1.6 gpt Au. These figures have actually not been validated by LAT.
If any party’s JV interest reduces to 5%or less it will immediately convert to a 5%NPI. Need to the proposed mining law be passed and the government royalty gotten rid of, Minas Paraguay’s 5%NPI will immediately increase to a 10%NPI.
Minas Paraguay reported production ranges of 2,000 g to 3,000 g per heap for a duration of 18 months of production, suggesting that the typical grade of the soil is in the range of 0.5 to 1.0 gpt Au.
Both agreements are subject to a 60 day due diligence duration and the approval of the Federal government of Paraguay, TSX Endeavor Exchange and Board of Directors of LAT.
The Paso Yobai Gold Project lies in an emerging gold camp around 150 km east of Asuncion, the capital of Paraguay. It was found in 1996 by a treasure hunter and actively mined just in the last 3 years by crushing, milling and focusing free gold in the soils and saprolites. There are no geology maps of the area, which is greatly forested. The sub-tropical weather condition created 10 m to 25 m saprolite weathering profile. Regional geology consists of Jurasic sandstones intruded by mafic dykes connected to a suite of Cretaceous mafic alkaline rocks that is located 50 km east of the Paso Yobai that was drilled in the 90’s by Yamana Resources. The dykes of the alkaline complex extend for numerous hundred kilometers and vary from a couple of meters width to tens of meters in width. The extensive nature of the dykes is associated with rifts that cut the continent throughout the initial stages of the opening of the Atlantic Ocean.
In the area of the Task the dykes reveal extreme kaolin-illite-smectite change and the wall rock is weakly silicified. Mineralization is discovered in the contact of the mafic dykes with the sandstones and consists of very fine quartz and minor calcite veins (hair like) intensively oxidized with free gold, marcasite and relict pyrite. Open spacing in the veinlets plainly suggests very high level system. The width of the vein zone varies from 1 m to over 20 m and the strike is 3.7 km in a continuous style. Noticeable gold along the mineralized zone is noticeably typical and we encourage the reader to visit our site to see photos of some intriguing gold samples. The gold is present as complimentary gold with low silver content, suggesting supergene enrichment in the saprolite.
Representative grab sampling done by the company has actually returned approximately 10 gpt Au although tasting may not be representative in the existence of coarse noticeable gold. Other geochemical indications in the task consist of high As, P, Bachelor’s Degree, Cu and Mn.
It is difficult to develop an analog throughout this early phase of this emerging gold camp however the close relationship with mafic alkalic rocks, the fluorite and calcite as gangue minerals and the illite-smectite-chalcedony change recommends that this is an alkalic-low sulfidation system where the most known deposit is Cripple Creek, CO (6 M Oz).
The proposed exploration program is to include a comprehensive airborne magnetometer and electro-magnetic survey performed over the whole task location, soil geochemical study and comprehensive diamond drilling and sampling. The goal of this thorough program is to describe a mineral resource within 2 years.
” While the company has sufficient funds to start the program it is preparing to raise additional funds in the near term to carry out this aggressive expedition program along with deal with our Tendal VMS zinc-silver job in La Rioja, Argentina, and to expand our expedition programs at our La Carolina gold project in San Luis, Argentina, and our Cerro Amarillo gold/copper job in Mendoza, Argentina” reports Mr. Wahl, CEO (P.Eng., P.Geo.).
Dr. Waldo Perez, P.Geo. and Sr. Vice-President of LAT, is the designated Certified Person for the Job and is accountable for the contents of this news release.
Latin American Minerals Inc. is a mineral expedition business concentrated on the acquisition and development of expedition opportunities in South America.
This news release consists of forward-looking statements, which can be recognized by the use of statements that include words such as “might”, “prospective”, “believe”, “expect”, “anticipate”, “plan”, “plan”, “most likely”, “will” or other similar words or expressions. These positive statements, including statements relating to the Corporation’s beliefs in possible mineralization, are based on current expectations, presumptions and projections about future occasions and involve numerous risks and unpredictabilities that are beyond the Corporation’s capability to control or anticipate. Actual results may materially differ from expectations as more information concerning a residential or commercial property is collected or if the Corporation’s estimates or assumptions show incorrect. Elements that might materially affect actual results consist of, but are not limited to, political, business and economic conditions in Argentina and in jurisdictions where the Corporation performs company, and dangers connected with mineral expedition and production. The Corporation does not intend, and does not assume any commitments, to update forward-looking declarations, whether as an outcome of new information, future events or otherwise. Readers should not place excessive reliance on forward-looking declarations.
Neither the Corporation nor the Qualified Individual have actually reviewed any of the reports or exploration results underlying such quotes and appropriately, such quotes (and any presumptions underlying such estimates) have actually not been independently verified. As an outcome, there can be no guarantee that such historical estimates are trustworthy, or that such estimates are indicative of any mineralization which would fulfill the requirements of Mineral Resources as specified in accordance with National Instrument 43-101
The TSXV has actually not examined and does decline obligation for the adequacy or the accuracy of this release.
Contacts: Latin American Minerals Inc. David Wahl (416) 593-9356 Website: www.latinamericanminerals.com
SOURCE: Latin American Minerals Inc.