Mon­tan Min­ing to ac­quire Greater Las Huaquil­las project

Stockwatch Daily - - MINES & METALS - Mr. Ian Gra­ham re­ports

MON­TAN MIN­ING Corp. has agreed to ac­quire a 44.5per-cent-to-100-per-cent in­ter­est in a port­fo­lio of min­eral con­ces­sions that col­lec­tively con­sti­tute the Greater Las Huaquil­las (GLH) project — a highly prospec­tive pre­cious me­tal and base me­tal project in north­ern Peru. The con­ces­sions are lo­cated to the im­me­di­ate south of the bor­der with Ecuador, where re­cent ex­plo­ration suc­cess and cor­po­rate ac­tiv­ity in the Ecuadorean min­ing sec­tor, high­lights the in­creas­ing in­ter­est in this his­tor­i­cally un­der­ex­plored re­gion. The GLH project is in­ter­preted by Mon­tan Min­ing to be lo­cated within a key north-south-trend­ing min­er­al­ized belt that ex­tends through south­ern Ecuador into north­ern Peru.

Based on his­tor­i­cal ex­plo­ration, five min­er­al­ized zones, con­sist­ing of four min­er­al­iza­tion types, in­clud­ing ep­ither­mal and por­phyry-style min­er­al­iza­tion types have been iden­ti­fied at the GLH project. The most ad­vanced of these min­er­al­ized zones, the Los So­cavones zone, was par­tially ap­praised by a pre­vi­ous op­er­a­tor (Sul­li­den; 1996 to1999).

In 1998, Sul­li­den (Gariepy and Va­chon; 1999) es­ti­mated that a 500-me­tre sec­tion of the 2,200-me­tre-long Los So­cavones zone hosts a ge­o­log­i­cal re­source of 6.57 mil­lion tonnes grad­ing 2.12 grams per tonne gold and 25.2 grams per tonne sil­ver; equiv­a­lent to 446,000 ounces of gold and 5.3 mil­lion ounces of sil­ver at a one-gram-per-tonne-gold cut-off. The re­source was re­ported to re­main open at depth and along strike. This his­tor­i­cal re­source, based on 10 drill holes and 20 min­er­al­ized in­ter­cepts, was es­ti­mated by Sul­li­den to a depth of 200 me­tres and is re­ported as a his­tor­i­cal re­source es­ti­mate in a Na­tional In­stru­ment 43-101 tech­ni­cal re­port pre­pared for an un­re­lated party in 2011. Mon­tan Min­ing has not con­ducted any work to es­tab­lish the rel­e­vance and re­li­a­bil­ity of the his­tor­i­cal es­ti­mate.

Key terms:

• At com­ple­tion, Mon­tan Min­ing will ac­quire Min­era LBJ from Lida.

• Con­sid­er­a­tion for Mon­tan Min­ing’s pur­chase of Min­era LBJ SAC will be the is­sue of 25 mil­lion Mon­tan Min­ing shares and 12.5 mil­lion war­rants (eight cents; five-year term) to share­hold­ers of Lida.

• The trans­ac­tion is sub­ject to cus­tom­ary con­di­tions that are typ­i­cal of trans­ac­tions of this na­ture, in­clud­ing Mon­tan Min­ing share­holder and TSX Ven­ture Ex­change ap­proval.

•Upon com­ple­tion, pres­i­dent and chief ex­ec­u­tive of­fi­cer of Lida, Leonard de Melt, an ex­pe­ri­enced min­ing ex­ec­u­tive with ex­ten­sive South Amer­i­can min­ing ex­pe­ri­ence, will be in­vited to join the board of Mon­tan Min­ing.

Ian Gra­ham, a di­rec­tor and the chief ex­ec­u­tive of­fi­cer of Mon­tan Min­ing, com­mented: “We are pleased to an­nounce our first ma­te­rial ac­qui­si­tion since the re­struc­ture of the com­pany was ini­ti­ated ear­lier this year. The Greater Las Huaquil­las project pro­vides Mon­tan Min­ing with the op­por­tu­nity to sys­tem­at­i­cally ap­praise a sub­stan­tial his­tor­i­cal re­source in north­ern Peru. We are con­fi­dent that the his­tor­i­cal re­source ap­praisal stud­ies were per­formed by Sul­li­den to a very high stan­dard and are op­ti­mistic, with fur­ther ap­praisal, we will be able to grow the his­tor­i­cal re­source base and bring this in line with the stan­dards re­quired to be able to de­clare a NI 43-101-com­pli­ant re­source.”

We seek Safe Har­bor.

Mike Caswell con­densed this news re­lease ([email protected]­watch.com).

An­thony B Balic, Ian Gra­ham, Dou­glas Gre­gory Hall, Ba­hay Oz­cak­mak, Luis F Za­p­ata

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